Weekly e-News November 21, 2014
Dear Members and Friends:
A guy buys some property and then gets a loan from a big lender. Our
contractor builds some stuff on it but doesn’t get paid. “So what!” He
thinks, “I’ve got lien rights!”, and he puts a lien on the property for
$400,000.
But while he is busy foreclosing to get his $400,000 he discovers that the
lender has transferred the property to another company, who has held a
“poorly attended” auction, and bought the property from itself. Huh? ….. Is this lien gone? Yep, it’s
gone! – to see how this magic works in our court system see our LAST PAGE.
Over One Billion Dollars of LBE (Local Business Enterprise) projects are coming
from the SFPUC and LBE bidders get a bid credit. If you are in the water system
service area and do less than $14,000,000 annually you qualify. You do not have to be
based in San Francisco.
These are maintenance projects on the Hetch Hetchy water system and you need to
become certified as an LBE to get the bid credit (very easy certification process). The
more information is attached below
The projects are generally in the central valley and beyond, they are prevailing wage (but not PLA) and
have various degrees of local hire provisions.
This is a very good opportunity for a smaller sub or general contractor who has the desire to grow. We
will post them on our website as they become available. Call Tom at 650-591-4486 for list of projects,
FAQ’s and application. See our email of 11/18/14 for more detail.
Fun Things On the Way
More theatre – Join your fellow members and bring your friends!
Phantom of the Opera
Sign up now to make sure you get tickets!
Sign up flyer in this issue
Matilda
Sign up now to make sure you get tickets!
Sign up flyer in this issue
See’s Candy – Yep it’s that time of year again – See’s candy at a
discount. Each Christmas the Exchange orders a truckload of Sees
candy at a discount for our members and their families. Here is how
this works:
You get the order form out of this issue and then copy it and give it to
your employees. They check off what they want on the list and send it
back to the Exchange with payment. The discount is about 20% so it’s
a good time to get some for gifts to relatives, friends and customers.
Then Leslie and Andrea sort all this out and place a giant discounted
order with See’s. About a week or so before Christmas we get a truck and go pick it up. They take a day
to make little piles out of everyone’s order and then you come down and pick it up before Christmas. All
of the savings are passed along to the members.
Nice 359 square foot 2 office suite with carpet and parking right outside. Great
for startup, construction office or rep. This is a nice sunny office with new paint
and carpet. 359 sf available now. We are a full service building and your
monthly rent included Utilities, maintenance, custodial and taxes.
2015 Calendars are in! You are probably asking yourself, “What’s the big
deal about calendars?” Well, besides being free, the calendars are also good!
Greg McCartney who is the VP of McGovern Insurance in Belmont, gave us
a couple of cases of these for our members. Why are they good? Because
they are 13 month (start with December 2014) and they have lots of good
space for each day to write things in. They also show all the holidays so you
don’t have to look them up on Google. There is something to be said for
low-tech after all! Stop by the Exchange and pick a bunch up. Home, office,
trailer, garage. Here I am holding one up.
You Can Join – The Exchange is welcoming new members – Plans online, business
assistance, discounted insurance, networking trips and a lot more. The Exchange is the best business
association investment you can make – and its tax deductible for most businesses. Call Tom at 650-5914486 for more info.
Follow us on Twitter at: https://twitter.com/PBX101E
It’s a good way to keep up with things at the Exchange. If you don’t have Twitter, you
should get it on your cellphone. It gives you brief messages and if you are interested in the
topic, you can download from the source by tapping a link. If you are not interested, just ignore it. The
good part about Twitter is that it is non-invasive. You can review it in an instant from anywhere and
ignore what you don’t want to see.
.Come See Us! We are open 7:30 AM to 4:30 PM on weekdays – stop by and see
us at 735 Industrial Road in San Carlos (between Holly and Whipple) We are a nonprofit, member run association dedicated to helping contractors, subcontractors,
suppliers, designers and others in the construction industry. We have been doing this
since 1945.
Sincerely,
Tom McGinley
Executive Director
Help Wanted
Union Painting Company looking for Estimator have been in business
since 1978 . Bidding new construction and repaints. Office in San
Carlos . Please call Steve Baca owner (650) 224-1134 .
---------------------------------------------------------------------------------------------------------------------------Classified Ads for Members – If you are a member you can run a brief
classified ad in this newsletter for free. These can be ads for equipment for
sale / wanted or for help wanted or other “stuff”.
Send your ad to: [email protected] and please use Microsoft
Word format.
We email our e-News every Friday except the Friday between Christmas and New Year. Our current
circulation is 1176 copies each week.
359 ft² - Two Room Suite
Full Service office great
for startup or ? (San
Carlos)
Nice 359 square foot 2 office suite with carpet and parking right outside. Great for
startup, construction office or rep. This is a nice sunny office with new paint and carpet.
359 sf available Sept. 6th.
We are a full service building and your monthly rent included Utilities, maintenance,
custodial and taxes. This is NOT a triple net (NNN) lease where you have to pay
additional for just about everything except telephone and internet service
We have:
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
Utilities
Janitorial
Mail & Package Receipt
Free use of Conference Room
Copier Coffee Room/Lunch Room
24 Hour 7 day Access
The building is also wired for Comcast internet and AT&T
Near:


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101
Downtown San Carlos
24 hour fitness
Train station
The building has a good mix of software, accounting and business offices. Friendly
environment.
Call us at 650-591-4486 and ask Tom, Leslie or Andrea to give you a tour.
Hailed as “Stunning, intense and spectacular” by the Sunday Ex‐
press, this produc on features a brilliant new design by Paul Brown, costumes by the much missed Maria Björnson, a new staging by Laurence Connor – di‐
rector of the recent acclaimed 25th anniversary celebra on at the Royal Albert Hall – and new choreography by Sco Ambler. The produc on is overseen by Ma hew Bourne and Cameron Mackintosh. September 23rd, 2015 at 8:00pm Orpheum Mezzanine at 1192 Market St, San Francisco, California 94102 Deadline for ckets Thursday February 5th, 2015 Yes, Please reserve______Seat(s) for The Phantom of the Opera My Check for $__________($86.00 each) is included. Name:_________________________________________________________________________________________ Company Name:_________________________________________________________________________________ Address:________________________________________________________________________________________ Telephone:___________________________Email:______________________________________________________ Please return with payment to: Peninsula Builders Exchange, 735 Industrial Road, Suite 100, San Carlos CA 94070 Ques ons call: 650‐591‐4486 Winter Holiday
See’s Candies Order
Company Name_________________________________________________
Phone:______________________________ Contact:____________________
WEIGHT ITEM ITEM NUIMBER # OF ITEMS DISCOUNT PRICE PER ITEM TOTAL Deadline for Holiday Orders
4 lb 2 oz Sweet Tidings Gi Pack 9247 $67.75 Friday December 5th, 2014 @ 12pm
2 lb 7 oz Fes ve Favorites Gi Pack 9248 $40.80 You will be called when your order is ready
1 lb Holiday Fancy 9046 $18.90 Return Order Form & Check to :
4 lb Gi of Elegance® 887 $77.00 Peninsula Builders Exchange,
5 lb Assorted ChocolatesƗ 321 $70.00 735 Industrial Road, Suite 100,
3 lb Assorted ChocolatesƗ 320 $42.00 San Carlos, CA 94070
2 lb Assorted ChocolatesƗ 319 $28.00 1 lb Assorted ChocolatesƗ 318 $14.00 3 lb Milk ChocolateƗ 328 $42.00 2 lb Milk ChocolateƗ 327 $28.00 1 lb Milk ChocolateƗ 326 $14.00 1 lb Toﬀee‐e es® (can)ǂ 316 $14.00 2 lb Gold Fancy 348 $38.10 1 lb Golf Fancy 346 $20.50 3 lb Nuts & ChewƗ 336 $42.00 2 lb Nuts & ChewƗ 335 $28.00 1 lb Nuts & ChewƗ 334 $14.00 2 lb Dark ChocolatesƗ 331 $28.00 1 lb Dark ChocolatesƗ 330 $14.00 2 lb So CentersƗ 339 $28.00 1 lb So CentersƗ 338 $14.00 1 lb Almond Royal® (can)ǂ 315 $14.00 12oz Extra Fancy Mixed Salted Nuts (can)ǂ 313 $9.90 1 lb Victoria Toﬀee 396 $14.00 1 lb Truﬄes 902 $17.80 8 oz Truﬄes 474 $8.90 1 lb 5 oz Lollypops‐Assortedǂ 296 $13.45 1 lb 5 oz Lollypops‐Chocolateǂ 038 $13.45 1 lb 5 oz Lollypops‐Bu erscotchǂ 039 $13.45 1 lb 5 oz Lollypops‐Café La éǂ 815 $13.45 1 lb 5 oz Lollypops‐Vanillaǂ 9112 $13.45 1 lb 8 oz Peanut Bri leǂ 355 $14.00 1 lb Bridge Mix 356 $14.00 8 oz Assorted Peppermints 358 $7.00 8 oz Assorted Molasses Chips 360 $7.00 N/A Gi Cer ficate (redeemable con nental U.S.) 767 $15.20 N/A Gi Cer ficate (redeemable Hawaii) 769 $16.40 Total $__________________
FAXED ORDERS WILL NOT
BE ACCEPTED
4 oz Li le Pops®‐Assortedǂ 9176 $3.20 4 oz Li le Pops®‐Café La éǂ 9182 $3.20 4 oz Christmas Bear Gi Box 278 $5.25 All items are cello wrapped unless otherwise indicated.. Excep ons are noted by the “Ɨ” and are delivered in holiday gi wrap. 7.5 oz Reindeer Box ǂ 190 $6.15 Items marked with a “ǂ” are cer fied Kosher by THE STORYTHE STORY
“WELCOME TO THE DELIRIOUSLY AMUSING, MALEVOLENT, HEARTWARMING, HEAD-SPINNING WORLD OF MATILDA THE MUSICAL. YOU WON’T WANT TO LEAVE.” –
BLOOMBERG NEWS
Winner of 50 international awards, including the Tony Award®, and
one of the biggest hits on Broadway, MATILDA THE MUSICAL is
the story of an extraordinary little girl who, armed with a vivid imagination and a sharp mind, dares to take a stand and change her
own destiny.
Rolling Stone calls the show “hands down the BEST MUSICAL of
the season.” Based on the beloved novel by Roald Dahl, MATILDA
continues to thrill sold-out audiences of all ages on Broadway and
in London’s West End.
The Wall Street Journal says, “The makers of MATILDA have done
the impossible – triumphantly! It is smart, sweet, zany and stupendous fun.”
“ONCE IN A BLUE MOON, A SHOW COMES OUT BLAZING AND RESTORES YOUR FAITH
IN BROADWAY. MATILDA THE MUSICAL IS THAT
SHOW.” NEW YORK POST
“MATILDA IS THE BEST MUSICAL SINCE THE LION KING!”
– TIME MAGAZINE
“THE BEST FAMILY MUSICAL IN YEARS.” – CHICAGO TRIBUNE
Wednesday August 12th, 2015at 8:00pm Orpheum Mezzanine at 1192 Market St, San Francisco, California 94102 Deadline for ckets Thursday February 5th, 2015 Yes, Please reserve______Seat(s) for MaƟlda the Musical
My Check for $__________($65.00 each) is included.
Name:_________________________________________________________________________________________
Company Name:_________________________________________________________________________________
Address:________________________________________________________________________________________
Telephone:___________________________Email:______________________________________________________
Please return with payment to:
Peninsula Builders Exchange, 735 Industrial Road, Suite 100, San Carlos CA 94070
Your Connection to the Industry...
Contractor ProView h
f Supplier ProView
ProView is how the entire construction industry
will see – AND connect – with companies like yours when they search
thebluebook.com. It provides all the information decision-makers need
about your company in one complete, convenient format.
ProView quickly brings your projects or products to life with a dynamic
full-color, image gallery! It’s also equipped with a personalized, portable
URL so you can feature it in all of your marketing communications.
Don’t have a website? ProView oﬀers a powerful solution that includes:
Get your company connected to the industry
today with a Blue Book Network ProView.
800-431-2584 | www.thebluebook.com
• Complete Company Information/Branding
• Geographical Areas Serviced
• Recently Completed Projects
• Full-Color Photo Gallery of Your Projects/Products
• Email Links for Information and PreQual Requests
• Links to Specs, BIM, CAD and other “Related Files”
• Name Brands and Products Installed/Supplied
• Trade Associations, Memberships & Govt. Certifications
Peninsula Builders Exchange and ARC Document Solu ons has partnered up to oﬀer a discounted price on prints for Peninsula Builders Exchange Members! If you place your order though Peninsula Builders Exchange it will be $2.50 a sheet up to 24” x 36”! If you would like to place an order please email Andrea at an‐
drea@construc onplans.org with the name of the project and what pages you want (Phone orders will not be accepted). If you have your own set of drawings you’d like printed please a ach that file with what pages you’d like. You’ll be no fied when your order is ready. Orders should be ready to be picked up at the ARC of your choice in 24 hours. C.H.A.S.E.
Need Help With Safety?
Need Help With Safety and Environmental
Issues? The Safety Resource for Peninsula
Builders Exchange Members is C.H.A.S.E.
C.H.A.S.E. President Bill Sanborn is the regional expert on Construction
Health and Safety Issues. If you need safety advice please give him a
call!
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
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


Safety Plans (IIPP)
Construction Safety Related Training
Cal-OSHA Paperwork
Citation Defense
Environmental Issues
Employee Safety and Exposure
Ergonomics
Call Bill Sanborn at:
408-374-9565
Three Cards One Invoice
With this “Freedom” card you can
•
•
•
•
•
•
Control Fueling Settings
Shop for the Best Street Price
Charge Maintenance and repairs
Use almost any gas station
Manage your account online
NO FEES
With this “Cardlock” card you can
•
•
•
•
•
•
Control Fueling Settings
Fuel oversized trucks
Use high-flow pumps
Use unattended sites
Manage your account online
NO FEES
With this “Retail” card you can
•
•
•
•
•
•
Control Fueling Settings
Shop for the Best Street Price
Charge Maintenance and repairs
Charge Hotel Stays
Manage your account online
NO FEES
Michael Nathan
(510) 376-4700
[email protected]
Litigation History Search Request
One of the best ways for residential contractors to assess your owner client is to look at their
past. Have they been involved in a lot of litigation? People tend to continue the same pattern in
life and those who have had a great many disputes in the past will probably also have them in the
future. Your exchange will provide member companies with a San Mateo County court history
of prospective clients.
Please complete the form, sign and return to PBX by fax or mail. Please note that all responses to
your request are by email only, so be sure to provide a clearly printed email address.
Name of individual _________________________________________________________
Last known address: ________________________________________________________
________________________________________________________
Name of Member Company: __________________________________________________
Name of person making request: _______________________________________________
Email for response ___________________________________________________ print clearly
Contact telephone: ____________________________________________________
We make no warranty or guarantee concerning the accuracy or reliability of the content.
Assessing accuracy and reliability of information is the responsibility of the user. Information is
provided from public records. Peninsula Builders Exchange and its suppliers shall not be liable
for errors contained herein or for any damages in connection with the use of the information
contained herein.
Signature: __________________________________ Date: _____________________
Fax to: 650-591-8108
Mail To: Peninsula Builders Exchange, 735 Industrial Road, San Carlos, CA 94070
Health Insurance Answers You Can Trust
 Need help in understanding how to get decent
coverage?
 Want to see if you will benefit from the 2014
changes?
 Will an HSA work for my insurance needs?
 Will health insurance help retain employees?
 Can I position my income for a insurance subsidy?
 How can I get “guaranteed issue” if I have health
problems?
 Which carrier should I choose?
 Plan Administration and Paperwork? – Just leave it to
Us!
Call Todd Taylor, our preferred Health Insurance Person for straight
forward answers you can trust. Todd has helped over 100 members!
650-594-5933 408-358-7502
Choose from any of the following plans:
Kaiser-Convenient & one close location for all of
your health care needs
Anthem Blue Cross & Blue Shield - Largest
selection of plans & largest PPO networks in the state
Health Net-great alternative carrier to the Blues with
competitive plans
Health Insurance Answers You Can
Trust!
408-358-7520 650-594-5933
New Law Requires Free Plan Sets:
AB 2036 is a new law which requires that government agencies
provide digital plans to local builders
exchanges when requested.
We, as members of GSBE and in conjunction with the
AGC, sponsored this legislation because many
jurisdictions were withholding plans from our
exchange and some were even trying to charge for
digital copies sent by email. Many jurisdictions also
use “blueprint services” as the sole method of
distribution – which forces contractors to buy printed
sets of digital plans. This is good legislation for our members and we are beginning
our campaign to make the various state and local agencies aware of the new law,
and also asking them to provide us with plans.
Over the next several weeks Andrea will contact many local jurisdictions and
make a special effort to reach those small water districts and school districts
which often go unnoticed. If there are any public agency projects you would
like us to get a set of plans for, please contact Andrea at 650-591-4486 and we
will request them under AB 2036.
We at the Exchange recommend Planswift as the best digital take off
program for small to medium sized contractors. We have arranged with
Palnswift to give our members a two week trial with telephone support. If
you are curious about digital takeoff software – this is the best way to find
out if it is right for you.
To get your free trial please use the following link:
www.Planswift.com/Requesttrial/?AID=247
Health Insurance Answers You Can Trust
 Need help in understanding how to get decent
coverage?
 Want to see if you will benefit from the 2014
changes?
 Will an HSA work for my insurance needs?
 Will the new Small Group Carrier, Seechange, work
for my company?
 Can I position my income for a 2014 insurance
subsidy?
 How can I get “guaranteed issue” if I have health
problems?
 Which carrier should I choose?
 Plan Administration and Paperwork? – Just leave it to
Us!
Call Todd Taylor, our preferred Health Insurance Person for straight
forward answers you can trust. Todd has helped over 100 members!
650-594-5933 408-358-7502
Choose from any of the following plans:
Kaiser-Convenient & one close location for all of
your health care needs
Anthem Blue Cross & Blue Shield - Largest
selection of plans & largest PPO networks in the state
Health Net-great alternative carrier to the Blues with
competitive plans
Health Insurance Answers You Can
Trust!
408-358-7520 650-594-5933
A Chance to Save
Money on Workers
Comp Insurance
What’s Happening? The Worker's Comp market is changing - State
Fund is becoming more competitive.
Why is this important? Exchange Members with a good loss history
can get a 6% discount (in addition to all other discounts) if they join
State Fund Group 826. You can save money.
What do I need to do? At the time of quoting or renewing you or your
broker need to ask to be put in 826 otherwise they will not put you in a
group and you will have to pay more. Be sure you ask for group 826
at the time of getting your quote.
What if I am not an Exchange member? If you are not a member you
can join when you get the insurance, but you MUST be a member to
get the discount. Make sure your broker considers State Fund Group
826.
Here is some background:
The workers' comp market changes every few years. We are beginning another
period of dramatic change. State Fund Workers Compensation Insurance is becoming
much more competitive as other insurers raise their rates or leave the California
market. This trend will likely continue for the rest of the decade.
Not a member? You can join before you get the insurance – Use the Membership
Application in this Issue. Questions? Call Tom at the Exchange - 650-591-4486
Peninsula Builders Exchange is a Non-Profit, Member Run association dedicated to helping contractors,
subcontractors, suppliers, designers and and others associated with the construction industry. We have
been doing this since 1945
WE’RE OPEN...
Come and visit us at our new location!
• Lumber, Doors, Windows and More
• Pro-oriented Hardware Store • Building Materials, Concrete, Fencing
YOU’RE INVITED
HAYWARD REDWOOD CITY OPEN HOUSE
Wednesday, November 5th
1775 E. Bayshore Road, Redwood City
11:30 - 1:30
11:00 - 3:00
3:00 - 4:00
4:30 - 7:00
Taco Lunch
Meet the Manufacturers
AIA Continuing Education
“Build Tight, Ventilate Right!”
Wine, Hors d’oeuvres and
Ribbon Cutting Ceremony
$10
Coupon
$10
OFF
Coupon
When you spend $20
or more.
One Per Customer
• Cannot be used on prior sales items
• Not valid on sale or clearance items
• Cannot be combined with any other
sale items
1775 East Bayshore Rd.
Redwood City
Expires: 11/30/2014
RSVP: Marketing @ 831-643-1900 ext. 206 or [email protected]
Redwood City
1775 East Bayshore Rd.
www.haywardlumber.com
There are 9 reasons why companies belong to the Exchange:
1. Problem Solving – we help you solve business problems
2. Staff help – You may know everything – but how about the people who work for
you? We are here to help them also.
3. Social contacts – Work with, travel with and learn from others in your Exchange.
4. Power in Numbers. Hundreds in San Mateo County and Thousands in the State
through GSBE.
5. Training and Assistance – Your existing managers, foremen and field people need
to work safer, smarter and more profitably . We do construction industry training.
6. Relationships – We all help each other.
7. Projects and Plans on-line – Over 2700 projects for you to bid in the last year.
8. Discount on State Fund Worker’s Comp for Firms that qualify.
9. Levels of Participation – You have the opportunity for all levels of participation
from trips to exotic locations and calling in your questions and problems for on the
spot help. Or you can just use the on-line plans; safety and business training and
updates on industry news and legislation. You decide how much participation you
want.
Fill out the attached membership application and make your company a part of our
construction community today!
Membership Application Fax To: 650‐591‐8108 Peninsula Builders Exchange 735 Industrial Road #100 San Carlos, CA 94070 650 ‐591‐4486 [email protected] Firm Name ___________________________________________________________________________ Telephone _____________________ Fax _______________________ Email _______________________ Name of Owner. ________________________________________________________ Contact Person ____________________________ Title _________________________ Business Address ______________________________ City & Zip ________________________________ Mailing Address _______________________________ City & Zip ________________________________ Email _________________________________________ Website _______________________________ Type of Business _________________________________________________________________ Contractor’s License # ____________________________ Classification ______________________ Membership Statement: This applicant, upon acceptance for membership in the Exchange agrees to abide by all rules and by‐laws of the Exchange. The Peninsula Builders Exchange is a non‐profit, member run association dedicated to improving standards and communications within the construction industry. We have been assisting contractors, sub contractors and suppliers since 1945. Visa / MC ____________/ ____________/ ______________/ _____________ Exp. Date ____________ Name on Card: ___________________________________________ VIN Number _________________ Authorized Signature: ______________________________________________ Date: _____________ Referred By: ________________________________________________________________________ Application Fee of $100 Annual Dues: $400 (Total $500) please include with application Visit us on the internet: www.ConstructionPlans.org www.ConstructionAssistant.com www.ConstructionFinder.com Peninsula Builders Exchange, 735 Industrial Road #100, San Carlos CA 94070 650‐591‐4486(v) 650‐591‐8108(f) [email protected] Winter Holiday
See’s Candies Order
Company Name_________________________________________________
Phone:______________________________ Contact:____________________
WEIGHT ITEM ITEM NUIMBER # OF ITEMS DISCOUNT PRICE PER ITEM TOTAL Deadline for Holiday Orders
4 lb 2 oz Sweet Tidings Gi Pack 9247 $67.75 Friday December 5th, 2014 @ 12pm
2 lb 7 oz Fes ve Favorites Gi Pack 9248 $40.80 You will be called when your order is ready
1 lb Holiday Fancy 9046 $18.90 Return Order Form & Check to :
4 lb Gi of Elegance® 887 $77.00 Peninsula Builders Exchange,
5 lb Assorted ChocolatesƗ 321 $70.00 735 Industrial Road, Suite 100,
3 lb Assorted ChocolatesƗ 320 $42.00 San Carlos, CA 94070
2 lb Assorted ChocolatesƗ 319 $28.00 1 lb Assorted ChocolatesƗ 318 $14.00 3 lb Milk ChocolateƗ 328 $42.00 2 lb Milk ChocolateƗ 327 $28.00 1 lb Milk ChocolateƗ 326 $14.00 1 lb Toﬀee‐e es® (can)ǂ 316 $14.00 2 lb Gold Fancy 348 $38.10 1 lb Golf Fancy 346 $20.50 3 lb Nuts & ChewƗ 336 $42.00 2 lb Nuts & ChewƗ 335 $28.00 1 lb Nuts & ChewƗ 334 $14.00 2 lb Dark ChocolatesƗ 331 $28.00 1 lb Dark ChocolatesƗ 330 $14.00 2 lb So CentersƗ 339 $28.00 1 lb So CentersƗ 338 $14.00 1 lb Almond Royal® (can)ǂ 315 $14.00 12oz Extra Fancy Mixed Salted Nuts (can)ǂ 313 $9.90 1 lb Victoria Toﬀee 396 $14.00 1 lb Truﬄes 902 $17.80 8 oz Truﬄes 474 $8.90 1 lb 5 oz Lollypops‐Assortedǂ 296 $13.45 1 lb 5 oz Lollypops‐Chocolateǂ 038 $13.45 1 lb 5 oz Lollypops‐Bu erscotchǂ 039 $13.45 1 lb 5 oz Lollypops‐Café La éǂ 815 $13.45 1 lb 5 oz Lollypops‐Vanillaǂ 9112 $13.45 1 lb 8 oz Peanut Bri leǂ 355 $14.00 1 lb Bridge Mix 356 $14.00 8 oz Assorted Peppermints 358 $7.00 8 oz Assorted Molasses Chips 360 $7.00 N/A Gi Cer ficate (redeemable con nental U.S.) 767 $15.20 N/A Gi Cer ficate (redeemable Hawaii) 769 $16.40 Total $__________________
FAXED ORDERS WILL NOT
BE ACCEPTED
4 oz Li le Pops®‐Assortedǂ 9176 $3.20 4 oz Li le Pops®‐Café La éǂ 9182 $3.20 4 oz Christmas Bear Gi Box 278 $5.25 All items are cello wrapped unless otherwise indicated.. Excep ons are noted by the “Ɨ” and are delivered in holiday gi wrap. 7.5 oz Reindeer Box ǂ 190 $6.15 Items marked with a “ǂ” are cer fied Kosher by A MECHANIC’S LIEN CAN BE EXTINGUISHED FOLLOWING A
TRANSFER BY DEED IN LIEU OF FORECLOSURE
By Bruce D. Rudman
Abdulaziz, Grossbart & Rudman
This case highlights the crafty actions of a lender which successfully thwarted a Mechanic’s Lien claimant from
collecting.
AZWellesley Plaza, LLC (“Wellesley”) purchased property and secured a loan with Prudential Mortgage Capital
Company, LLC (“Prudential”) in February of 2008. In August 2008, Wellesley contracted with Decon Group, Inc.
(“Decon”) to perform renovations. Decon completed its work but was unpaid by just over $400,000, for which it
recorded a Mechanic’s Lien against the property in April 2009. In July 2009, Decon filed suit against Wellesley,
Prudential, and others for breach of contract, quiet title, and most important to this article, for foreclosure of
Mechanic’s Lien.
Since Wellesley was also in default on the loan, Prudential recorded a notice of default and decided to sell the
default on the loan. Prudential transferred the loan, which was in default, to an entity known as PMCF Properties,
LLC (“PMCF”). In November 2009, Wellesley transferred the property to PMCF with a grant deed in lieu of
foreclosure. Thereafter, even though PMCF owned the property, it proceeded with the trustee’s sale of the property
and apparently there were no other bidders because PMCF purchased the property at the trustee’s sale from itself,
and later sold the property to a third-party, 12304 Santa Monica Blvd., LLC (“Santa Monica”) by grant deed. Since
the litigation over the Mechanic’s Lien was still ongoing, when Decon discovered that Santa Monica was the new
owner, Santa Monica was brought in as a Doe defendant.
This matter went to trial in December 2012. The trial court determined that, “the mechanic’s lien has priority and
was not extinguished by the sale of the property to PMCF.” So, judgment was entered in favor of Decon against all
defendants for foreclosure of the Mechanic’s Lien, quiet title, and declaratory relief. The judgment stated that
Decon’s Mechanic’s Lien should come before all other liens and that the property should be sold by public auction.
The defendants appealed the trial court’s decision, becoming the appellants in this matter.
In the Court of Appeal, the appellants argued the PMCF’s foreclosure terminated Decon’s Mechanic’s Lien when
the property was purchased at the foreclosure sale – in effect, the foreclosure was argued to clear title to the subject
Mechanic’s Lien and any other junior liens, thereby leaving Santa Monica to purchase a property free of any
encumbrances. The plaintiff had argued that the interest in the loan merged with the ownership interest in the
property, so that there no longer was a loan which could be foreclosed sufficient to wipe out junior liens. However,
the Court of Appeal agreed with the appellants and held that long-standing legal principles hold that when a senior
lien holder accepts a deed in lieu of foreclosure, the senior lien and title do not merge, so the senior lien holder
retains the power to foreclose, thereby eliminating any junior liens.
A foreclosure of a trust deed by a mortgage holder will wipe out all inferior liens unless the property sells for more
than the outstanding senior indebtedness, in which case, any excess will be paid to the junior lien holder up to the
amount of the junior lien. The lender was able to manipulate this rule to wipe out the Mechanic’s Lien and any
junior liens. Of course, any junior lien holder could have bought the property itself, but in this case the loan was in
excess of $13 million.
This case highlights the problems with claiming a Mechanic’s Lien in a bad economy. If there is equity, properties
rarely go to foreclosure. Where there is little equity, the Mechanic’s Line does not secure a viable recovery. If you
are in this position, you should seek the aid and advice of a construction attorney.
Bruce Rudman has been practicing construction law for 18 years. He has garnered a great reputation in the construction field not only as a litigator but on licensing
issues with the CSLB, particularly disciplinary proceedings. Abdulaziz, Grossbart & Rudman provides this information as a service to its friends & clients and it
does not establish an attorney-client relationship with the reader. This document is of a general nature and is not a substitute for legal advice. Since laws change
frequently, contact an attorney before using this information. Bruce Rudman can be reached at Abdulaziz, Grossbart & Rudman: (818) 760-2000 or by E-Mail at
[email protected], or at www.agrlaw.com
Oct./Nov. 2014