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Lanak & Hanna Prevails in Administrative Hearing to Dissolve a Frivolous Stop Payment Notice

By November 17, 2021November 22nd, 2021No Comments

Associate Attorney Lauren Stec has prevailed in an administrative hearing challenging the validity of an unsupported and inflated stop payment notice.  

A subcontractor filed an unsubstantiated $150,000 stop notice against the prime contractor client.  Utilizing the provisions of Civil Code §9400, Ms. Stec was able to effectively challenge the stop notice and convince the public owner of the invalidity of the claim. Specifically, Ms. Stec argued that the stop notice was invalid because the subcontractor had not timely commenced a lawsuit to enforce the stop notice claim. Despite the subcontractor’s opposition, the public owner agreed with the client and ordered the stop payment funds released. 

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