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The contractor can place a lien for the actual cost of the work, but can end up foregoing that full amount because they chose to go to small claims
/justice court instead and there is a maximum they can sue for in small claims. If they sued for only $4000, they cannot go after the remaining $6000. Also, if they got a judgment for $875 against you, then the judgment has to be paid and they have to file a release of the lien and if they refuse you can sue them for damages for maintaining a now invalid lien. If you received the judgment in your favor (your question was not clear on this point so I will give both answers), then the lien must immediately be released and you would do so by filing a motion and order to release lien in the court and they will issue the order which you would file with the recorder of property records.
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