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790/018579-0185

14240754.2 a10/03/19 -1-

NOTICE OF CONTINUED PERFECTION OF 

AMENDED MECHANICS LIEN

RUTAN & TUCKER, LLP

Roger F. Friedman (State Bar No. 186070)

rfriedman@rutan.com

Philip J. Blanchard (State Bar No. 192378)

pblanchard@rutan.com

Ashley M. Teesdale (State Bar No. 289919)

ateesdale@rutan.com

611 Anton Boulevard, Suite 1400

Costa Mesa, California 92626-1931

Telephone: 714-641-5100

Facsimile: 714-546-9035

Attorneys for Creditor ARB, INC.

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

In re

PG&E CORPORATION

and

PACIFIC GAS AND ELECTRIC 

COMPANY

Debtors.

Case No. 19-30088 DM (Lead Case)

(Jointly Administered with Case No.

19-30089 DM)

Chapter 11

NOTICE OF CONTINUED 

PERFECTION OF AMENDED 

MECHANICS LIEN PURSUANT 

TO 11 U.S.C. § 546(b)(2)

[San Mateo, Document 

No. 2019-069673]

Affects PG&E Corporation

Affects Pacific Gas and Electric 

Company

Affects both Debtors.

* All papers shall be filed in the Lead

Case No. 19-30088 DM.

ARB, Inc. (“ARB”), by and through its undersigned counsel, hereby gives notice of 

continued perfection of its amended mechanics lien under 11 U.S.C. § 546(b)(2), as 

follows:

1. ARB is a corporation that has provided and delivered labor, services, 

equipment, and materials for the construction and improvement of projects on real 

property located in the County of San Mateo, State of California (the “Property”) and 

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NOTICE OF CONTINUED PERFECTION OF 

AMENDED MECHANICS LIEN

owned by PG&E Corporation and/or Pacific Gas and Electric Company (collectively, the 

“Debtors”).

2. Through January 29, 2019 (the “Petition Date”), the amount owing to ARB 

was approximately $5,648,337.76, exclusive of accruing interest and other charges. 

Before the Petition Date, on January 25, 2019, ARB properly perfected its mechanics lien 

under California Civil Code §§ 8400, et seq. by timely recording its Mechanics Lien 

(Claim of Lien) in the amount of $5,648,337.76 in the Official Records of San Mateo

County, State of California, as Document No. 2019-005552 (“Initial Mechanics Lien”).

3. On June 14, 2019, and subsequent to recording the Initial Mechanics Lien, 

ARB amended its lien claim amount and continued the proper perfection of its mechanics

lien under California Civil Code §§ 8400, et seq.by timely recording an Amended 

Mechanics Lien (Claim of Lien) in the amount of $7,627,117.90 in the Official Records of 

San Mateo County, State of California, as Document No. 2019-045970.

4. On July 24, 2019, and subsequent to recording the Initial Mechanics Lien 

and the amended mechanics lien, ARB further amended its lien claim amount and 

continued the proper perfection of its mechanics lien under California Civil Code §§ 8400, 

et seq.by timely recording another Amended Mechanics Lien (Claim of Lien) in the 

amount of $7,389,405.48 in the Official Records of San Mateo County, State of California, 

as Document No. 2019-058057.

5. After all appropriate credits and offsets, the amount owing to ARB through 

August 28, 2019, is at least $7,362,135.01, exclusive of accruing interest and other 

charges. Accordingly, on August 28, 2019, ARB further amended its lien claim amount 

and continued the proper perfection of its mechanics lien under California Civil Code 

§§ 8400, et seq. by timely recording its Amended Mechanics Lien (Claim of Lien) in the 

amount of $7,362,135.01 in the Official Records of San Mateo County, State of California,

as Document No. 2019-069673 (“Amended Mechanics Lien”), a true and correct copy of 

which is attached hereto as Exhibit A.

/ / /

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NOTICE OF CONTINUED PERFECTION OF 

AMENDED MECHANICS LIEN

6. Pursuant to California Civil Code § 8460, an action to enforce a lien must be 

commenced within 90 days after recordation of the claim of lien. However, due to the 

automatic stay set forth in 11 U.S.C. § 362, ARB is precluded from filing a state court 

action to enforce its mechanics lien. 11 U.S.C. § 546(b)(2) provides that when applicable 

law requires seizure of property or commencement of an action to perfect, maintain, or 

continue the perfection of an interest in property, and the property has not been seized or 

an action has not been commenced before the bankruptcy petition date, then the claimant 

shall instead give notice of its intent to enforce the lien within the time fixed by law for 

seizing the property or commencing an action. See 11 U.S.C. § 546(b)(2); see also In re 

Baldwin Builders (Village Nurseries v. Gould), 232 B.R. 406, 410-411 (9th Cir. 1999);

Village Nurseries v. Greenbaum, 101 Cal.App.4th 26, 41 (Cal. Ct. App. 2002).

7. Accordingly, ARB previously provided notice of its rights and its intent to 

enforce its rights as a perfected lienholder in the Property pursuant to California’s 

mechanics lien law. On February 22, 2019, ARB filed its Notice of Continued Perfection 

of Mechanics Lien Pursuant to 11 U.S.C. § 546(b)(2) with respect to its Initial Mechanics 

Lien [Dkt. No. 558] to preserve, perfect, maintain, and continue the perfection of its lien 

and its rights in the Property to comply with the requirements of California state law, 

11 U.S.C. §§ 362(a), 362(b)(3), and 546(b)(2), and any other applicable law (“Initial 

Notice of Continued Perfection”).

8. Due to the amendment of ARB’s Initial Mechanics Lien, ARB hereby 

provides further notice of its rights and its continuing intent to enforce its rights as a 

perfected lienholder in the Property pursuant to California’s mechanics lien law. ARB is 

filing and serving this notice to preserve, perfect, maintain, and continue the perfection of 

its lien and its rights in the Property to comply with the requirements of California state 

law, 11 U.S.C. §§ 362(a), 362(b)(3), and 546(b)(2), and any other applicable law. The 

Initial Notice of Continued Perfection and this notice constitute the legal equivalent of 

having recorded a mechanics lien in the recorder’s office for the county where the Property 

is located and then having commenced an action to foreclose the lien in the proper court. 

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NOTICE OF CONTINUED PERFECTION OF 

AMENDED MECHANICS LIEN

By the Initial Notice of Continued Perfection and this notice, the Debtors and other parties 

in interest are estopped from claiming that the lawsuit to enforce ARB’s mechanics lien 

was not timely commenced pursuant to applicable state law. ARB intends to enforce its 

lien rights to the fullest extent permitted by applicable law. The interests perfected, 

maintained, or continued by 11 U.S.C. § 546(b)(2) extend in and to the proceeds, products, 

offspring, rents, or profits of the Property.

9. The filing of the Initial Notice of Continued Perfection and this notice shall 

not be construed as an admission that such filing is required under the Bankruptcy Code, 

California mechanics lien law, or any other applicable law. In addition, ARB does not 

make any admission of fact or law, and ARB asserts that its lien is senior to and effective 

against entities that may have acquired rights or interests in the Property previously.

10. The filing of the Initial Notice of Continued Perfection and this notice shall 

not be deemed to be a waiver of ARB’s right to seek relief from the automatic stay to 

foreclose its mechanics lien and/or a waiver of any other rights or defenses.

11. ARB reserves all rights, including the right to amend or supplement this 

notice.

Dated: October 3, 2019 RUTAN & TUCKER, LLP

ROGER F. FRIEDMAN

PHILIP J. BLANCHARD

ASHLEY M. TEESDALE

By: /s/ Roger F. Friedman

Roger F. Friedman

Attorneys for Creditor ARB, INC.

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EXHIBIT A

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Exhibit A, Page 5

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Exhibit A, Page 6

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Exhibit A, Page 7

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Exhibit A, Page 8

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