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Harry Mendenhati

EXGCUIiYG vice preridcnl lumber Merchonts

Arsociqlion of Northern Cqlifornio 4516 El Ccnlm Lol, solt 0 ls Altc, etffi.9&22 (4rrl r4r.r6t7

/^IALIFORNIA Lien Law is cur- \-' rently under heavy attack. The main attack is coming from Oakland attornei Harry Miller who feels he must champion a cause of some sort and has zeroed in on the California Lien Law and the right of seizure without prior hearinpi. Should the materials supplier be forced into a position of not beirig able to file a stop notice he will be without security against the materials he supplies. ***

The following cases are pending in courts:

(l) In the Superior Court of Santa Clara County on a demurrer.

(2) Superior Court of El Dorado County in Placerville on a demurrer of 17 consolidated cases.

(3) In the District Court of Appeal of the Fifth Appelate District in Fresno on a writ from the Superior Court of the County of Merced.

(4) In the Bankruptcy Court in San Diego where general creditors are claiming that the Mechanic's Lien is unconstitutional in the attempt to wipe out the secured creditors' standing of those parties holding Mechanic's Liens against property of the debtor.

(5) On a demurrer in the Superior Court of the County of Marin.

(6) On a motion for summary judgement in the Superior Court of Santa Clara County in 7 consolidated cases.

The above will give you an idea of the gravity of the situation as it is currently progressing. Should the right of seizure be declared unconstitutional the only recourse to a materials supplier is a costly court hearing, or require cash for all purchases, or require a bond from the contractor.

LMA and several other associations who are members of the Western Building Material Dealers Assn. (a legislative advocate association for northern and southern California lumber associations and several credit associations) has been working diligently in an attempt to head offeach case as it is filed'

The Building Material Dealers Credit Assn., Los Angeles, and their attorney, have filed amicus curiae briefs with each court where a case against the Lien Law has been filed. The expense of such actions have been much more than the Building Material Dealers Credit Assn. can afford and the costs will continue if we are to provide you with any reasonable defense for your right to file preliminary lien and stop notices and to acquire property of the builder as security against default of payment to*you. *

We are now at the stase in our battle where everv buildine material dealer and supplier must assist in this batfle. All oT you will receive a request from your associations for monetary assistance to continue the*battle on your behalf.

Unless we have the funds to fight and win we will find ourselves the victim of the consumer advocates and it will be a long hard fight to enact new legislation that will provide you with the protection you*require. *

When the call for assistance reaches youparticipate.