Any lien or encumbrance claimant who records or files, or directs another to record or file, a lawsuit, lien, or other encumbrance in violation of Section 765.010 shall be liable to the person subject to the lawsuit or the owner of the property bound by the lien or other encumbrance for a civil penalty of up to five thousand dollars ($5,000).

(Amended by Stats. 2015, Ch. 208, Sec. 4. (AB 1267) Effective January 1, 2016.)

Terms Used In California Code of Civil Procedure 765.040

  • Lawsuit: A legal action started by a plaintiff against a defendant based on a complaint that the defendant failed to perform a legal duty, resulting in harm to the plaintiff.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Person: includes a corporation as well as a natural person. See California Code of Civil Procedure 17
  • Property: includes real property, and to the extent applicable, personal property. See California Code of Civil Procedure 760.010
  Previous section
Next section  
 Article 6 Contents