Court Allows Lien Claimant to Prove that Executed Release Should Be Voided for "Mistake"
The scenario: a supplier of electrical products signed a lien release in exchange for a check from the general contractor for $100,000. The lien release was good up though July 30, according to the face of the document. But the supplier said the document was in error -- that its release only went up through May 25 and that it was still entitled to seek payment for invoices submitted after May 25 (another $100,000).
Overruling the trial court, Division 1 held the supplier had made an adequate factual showing for the dispute to go to trial on the supplier's theory of mistake. The case is a useful starting point for anyone looking to analyze how traditional concepts of contract law such as mistake interact with the instruments of risk management (i.e., releases) which are a vital part of the construction industry.