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By John W. Ralls

A general contractor entered into a contract with a condominium association to perform earthquake repair work. A dispute arose between the contractor and the association concerning the amount due under the contract. The contractor sued both the association and the individual homeowners for damages and foreclosure of a mechanic's lien. The Court of Appeal affirmed summary judgment in favor of the homeowners. ECC Constr. Inc. v. Ganson, 82 Cal.App.4th 572, 98 Cal.Rptr.2d 292 (2000).

With respect to the damage claims, the court relied on the fact that the association was a California non-profit mutual benefit corporation. The members of such a corporation have no personal liability. (Corporations Code §7350 provides: "A member of a [California non-profit mutual benefit] corporation is not, as such, personally liable for the debts, liabilities or obligations of the corporation.").

With respect to the mechanic's lien foreclosure claim, the court relied on the facts that the lien did not segregate the amount owed by unit owner and that the contractor failed to prove the amount of lien per owner in opposition to the summary judgment motion. The court held that the contractor was obligated to put forward evidence of the reasonable value of its work as to each owner. In support of this proposition, the court cited Civil Code §§1369 and 3123 and 8 Miller and Starr, California Real Estate, Mechanics' Liens, §26:46, p. 515 (2d ed. 1990).

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