A contractor who records a mechanics lien for an amount it knows is willfully overstated risks:
Explanation
Civil Code §8422 makes a claim of lien void to the extent it includes work not provided or is willfully overstated, and the claimant can lose the lien altogether and face liability for the owner's resulting damages. (a) is the widespread and costly assumption that padding is free because a judge will simply trim it. (b) treats the consequence as a fee. (d) invents a transfer between remedies — overstating a lien does not move the surplus onto a bond, and a willfully false bond claim carries its own exposure.
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