California Codes, Civil Code - CIV, Division 4 — General Provisions, Part 6 — Works of Improvement, Title 2 — Private Works of Improvement, Chapter 8 — Prompt Payment, Article 2 — Retention Payment, Section 8818
If an owner or direct contractor does not make a retention payment within the time required by this article:
(a) The owner or direct contractor is liable to the person to which payment is owed for a penalty of 2 percent per month on the amount wrongfully withheld, in place of any interest otherwise due.
(b) In an action for collection of the amount wrongfully withheld, the prevailing party is entitled to costs and reasonable attorney’s fees.
Notes
Sets liability for an owner or direct contractor that fails to make a required retention payment at 2 percent per month on the amount wrongfully withheld, replacing otherwise due interest. Requires an award of costs and reasonable attorney’s fees to the prevailing party in an action collecting the wrongfully withheld amount.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 8818 | https://laws.lexinter.net/codes/california/civil-code/division-4/part-6/title-2/chapter-8/article-2/section-8818