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Lien Not Limited By Building Permit Amount Liens

Sunday, October 03, 2004 02:54 pm

Lien Not Limited By Building Permit Amount Liens

A California court has ruled that the under-valuation of a project in a building permit application will not limit or invalidate a subsequent mechanic's lien for a higher amount.

A tenant in a building in Beverly Hills awarded a costplus contract to Swinerton Builders to remodel retail and office space in an existing building. The improvements were to be made with the express authorization of the building owner, Fashion World-Santa (FWS). Swinerton applied for and obtained a municipal building permit stating the value of the project at $700,000.

The tenant with whom Swinerton contracted became insolvent, leaving t [...]

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