I Need Advise on CA Lien . Bad Problems what to do .

I am in California,

Here is my story in a nut shell ..

In the beginning of 2006 we contracted a house to be built ..
Foundation went up in May 2006 ..
We received a 20 Prelim June 19th 2006
We gave the first Draw per the contract when the Sub Floor was complete.
-The Contractor pointed out a place in the contract that he could ask for additional funds up front (which we know now was a BS contract)
We gave him a Second draw ..
Things we going along ok till June 2006 then nothing.
-We thought we might have a Problem SO WE WENT to the Material Provider and asked to see the books. They said NO because they didn’t have a Contract with us. We made it clear that the contractor had been paid and was to be on a CASH Only Account.
Things went along slowly .. We asked the contractor for releases and couldn’t get them from him SO WE WENT Back to the Material Provider who again Refused to open the books but insisted there was no Problems.
This went on for 6 more months .. We have 38 Phone calls logged to the Material Provider and 3 or 4 Visits .. ALL asking for the account info because we needed to show Diversion of Funds to Legal fire the Contractor.
In Dec 2006 we had a Lawyer Call the Provider and they still refused to give the info.
IN Jan 2007 the Provider Finally came to us and told us there was a HUGH Problem after we told them we where Firing the Contractor for Breech of Contract.
Here is the Kicker ..
Seems the whole time they said the account was OK they where lying. The Contractor by there own books had only paid $10,000 on my account with another $30,000 going to Old accounts before he even started my project. The contractor was 180days Late and $30,000 in the hole when the Same Material Provider gave him credit to start my house unknowing to myself.
I got all there paperwork and compared it to the 850+ Photos I had durihng the 6 months and told the that there was $29,000 out of the $53,000 they claimed to be mine that actually was consumed into my project.
They LIENED my for the whole $53,000 with no Verification that the materials where consumed in my project.
Of course now we have a Lawyer ..
We have been back in forth for several Months now and they have taken off around $11,000 in Materials that I have always claimed that where not mine, BUT they are saying the $11,000 that I speak of was never in the Lien. ....
The Material Providers Lawyer is also trying to say that I never told them to run the contractor cash only for Materials .. and the 38 Phone calls where for other reasons ..
I know I should have put in a written stop notice but at the time I had no Idea I needed to.
I know much about Lien Laws now, more then I ever wanted to but I need Help now ..

Is the 20 Prelim considered a Contract?
Is the Material Provider Morally Obligated to Inform me about Stop Noticed?
If the Material Provider went against there own credit policies are they responsible for the account?

In my Mind because they wouldn’t give me the information I needed and where the Only ones who had that information to legally fire the contractor before he ran up an account basically unchecked for 6 months to over $100,000 Half of which they claim was mine, I feel they are Negligent to the point where it is criminal.

Btw . The Contractor was Ordering Massive amounts of lumber under my Name and diverting it mid-shipment to other properties.

Also we have Delivery Slips that have been altered after the Lien was filed. Things like Signatures when None where present before .. Most of them you cant read ..

The Material Provider also had ALL the Contractors projects LUMPED into 1 folder with no real accounting of who was responsible for what. They basically Liened me for whatever they couldn’t account for on the contractors account.

Thank you VERY Much for you time,
Larry

Just a visitor but maybe you should shorten??

what do you do when everyone around you is doing drugs and you are the only one that doesnt do it