BILL NUMBER: SB 113	CHAPTERED  06/26/03

	CHAPTER  22
	FILED WITH SECRETARY OF STATE  JUNE 26, 2003
	APPROVED BY GOVERNOR  JUNE 25, 2003
	PASSED THE ASSEMBLY  JUNE 19, 2003
	PASSED THE SENATE  MAY 15, 2003
	AMENDED IN SENATE  MAY 13, 2003
	AMENDED IN SENATE  APRIL 30, 2003
	AMENDED IN SENATE  MARCH 6, 2003

INTRODUCED BY   Senator Ackerman

                        FEBRUARY 3, 2003

   An act to amend Section 1281.5 of the Code of Civil Procedure,
relating to mechanic's liens.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 113, Ackerman.  Mechanic's liens.
   Existing law provides that any person who records and enforces a
mechanic's lien does not waive any right of arbitration if the
claimant, in filing an action to enforce the lien, simultaneously
presents an application to the court to stay the action pending
arbitration, as specified.
   This bill would revise that provision to instead apply if the
claimant either (1) includes an allegation in the complaint that the
claimant does not intend to waive any right of arbitration and
intends to move, within 30 days after service of the summons and
complaint, for an order to stay further proceedings in the action, or
(2) files an application, at the same time the complaint is filed,
that the action be stayed pending arbitration.  The bill would also
require the claimant to file and serve a motion to stay the action
pending the arbitration of any issue, question, or dispute that is
claimed to be arbitrable under the agreement and that is relevant to
the action to enforce the claim of lien within 30 days after service
of the summons and complaint.  The failure of a claimant to comply
with this provision would waive the claimant's right to compel
arbitration.  The bill would also make technical changes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 1281.5 of the Code of Civil Procedure is
amended to read:
   1281.5.  (a) Any person who proceeds to record and enforce a claim
of lien by commencement of an action pursuant to Title 15
(commencing with Section 3082) of Part 4 of Division 3 of the Civil
Code, does not thereby waive any right of arbitration the person may
have pursuant to a written agreement to arbitrate, if, in filing an
action to enforce the claim of lien, the claimant does either of the
following:
   (1) Includes an allegation in the complaint that the claimant does
not intend to waive any right of arbitration, and intends to move
the court, within 30 days after service of the summons and complaint,
for an order to stay further proceedings in the action.
   (2) At the same time that the complaint is filed, the claimant
files an application that the action be stayed pending the
arbitration of any issue, question, or dispute that is claimed to be
arbitrable under the agreement and that is relevant to the action to
enforce the claim of lien.
   (b) Within 30 days after service of the summons and complaint, the
claimant shall file and serve a motion and notice of motion pursuant
to Section 1281.4 to stay the action pending the arbitration of any
issue, question, or dispute that is claimed to be arbitrable under
the agreement and that is relevant to the action to enforce the claim
of lien.  The failure of a claimant to comply with this subdivision
is a waiver of the claimant's right to compel arbitration.
   (c) The failure of a defendant to file a petition pursuant to
Section 1281.2 at or before the time the defendant answers the
complaint filed pursuant to subdivision (a) is a waiver of the
defendant's right to compel arbitration.