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HomeCivil CodeDiv. 4Pt. 6Ch. 4Art. 2§ 9400 Contractor Funds Release Grounds

§ 9400 Contractor Funds Release Grounds

Civil Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 9400 Contractor Funds Release Grounds

Key Takeaways

  • •If someone stops your payment for a job, you can get your money back if their claim isn't allowed by law.
  • •You can also get your money back if the person who stopped the payment isn't allowed to do that.
  • •If the amount they're asking for is too high or there's no real reason for their claim, you can fight it.

Example

You hired a painter to paint your house, and they did a bad job. They ask for more money than they should, so you stop the payment. The painter then tries to stop your payment to them.

You can get your money back because the painter's claim is too high and not fair.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 9400 Contractor Funds Release Grounds

A direct contractor may obtain release of funds withheld pursuant to a stop payment notice under the summary proceeding provided in this article on any of the following grounds: (a) The claim on which the notice is based is not a type for which a stop payment notice is authorized under this chapter. (b) The claimant is not a person authorized under Section 9100 to give a stop payment notice. (c) The amount of the claim stated in the stop payment notice is excessive. (d) There is no basis for the claim stated in the stop payment notice. (Added by Stats. 2010, Ch. 697, Sec. 20. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697 and by Section 8052.)

Last verified: January 21, 2026

Key Terms

direct contractorstop payment noticesummary proceedingclaimclaimant

Related Statutes

  • § 8414 Lien Enforcement Deadlines
  • § 9408 Contractor Claim Rights Declaration
  • § 9456 Stop Payment Notice Priority
  • § 9502 Stop Payment Notice Enforcement
  • § 9510 Stop Payment Notice Release

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Civil Code. Section 9400.
View Official Source