Legal Question in Construction Law in California

I hired an unlicensed contractor

My wife and I recently hired an unlicensed contractor to do some masonry work. When he gave us the estimate for the project, he acted as if he was a licensed contractor.

The unlicensed contractor never put anything in writing for us, including the estimate, as if he was trying to avoid something. When numerous defects appeared, we started to suspect that he was incapable of doing the project and ran a search on him on the Contractor License Board's website. It turned out he is in fact an unlicensed contractor.

We have paid him the full amount for the project, which is $9,000. But after we confronted him about the defects and his license, he abandoned the remaining works of the project. Now we are left with new concrete that has cracks and is thinner than it is supposed to be (we requested 4'' thickness but he poured only 2-1/2''), a short wall that is supposed to have stucco but has none, and pilasters that are supposed to have post caps but have none.

We paid $7,000 with personal checks and have copies of the checks to prove the amount. We paid $2,000 in cash (he said he needed cash to pay his workers) and only have a bank statement to show our withdrawal on that day.

Please advise me what legal options I have?


Asked on 6/19/04, 1:03 am

4 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: I hired an unlicensed contractor

A lot depends upon the financial and community stability of the unlicensed contractor. If he refuses or is unable to correct the defects, you have a potential (winnable) lawsuit for breach of contract, negligence, and perhaps fraud for misrepresenting his license status.

However, winning a lawsuit -- and I think we're talking small claims here -- and collecting a judgment are two different things. Insubstantial folks don't pay judgments, and when you try to levy on assets, they don't have any, or they've been hidden beyond ecomomic finding.

In the case of masonry work, you need to consider the additional problem that the work may not only fail to meet YOUR needs, it may fail to meet local codes and that permits that were needed weren't obtained. Some structural masonry work requires engineering or archictectural design, as well. Better see a local construction-defects lawyer while this bozo is still solvent and hasn't fled the scene, as many do.

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Answered on 6/19/04, 2:16 am
Michael Olden Law Offices of Michael A. Olden

Re: I hired an unlicensed contractor

They say you learn from your mistakes so you are probably little learn more than 9000 times. You sue the gentleman, and I use the word gentlemen very very lightly. Another choice of suing in small claims for up to $5,000 maximum, or you hired attorney to do it for you since you really can't do anything in terms of this project correctly, with all due respect and hope that not only can he/she win the case, which should be very easy, but at the same time collect the moneys. I would never interfere with another attorney's case but in this situation I would strongly suggest that you put into the causes of action a cause of action for fraud/deceit/misrepresentation. It should be very easy to prove and that particular claim is not dischargeable in bankruptcy. What it will take is more money in the question is (1) do you have the money and (2) is it throwing good money after bad. Let the attorney give you the alternatives and you make up your minds. Well with that said, now you understand why you will be learning more than 9000 times??? Oh yes, one last thought. Your wall probably doesn't meet local building codes standards and is probably so defective that it is problematic for you to keep it on your property. So, the long and short of it is you will have to probably tear it down and have a real masonry contractor put up one to your liking and pursuant to local doling codes. Understand that you don't give all the money upfront. They have a right to up to 10% upfront. Get the advice of the attorney was specialized in real property construction law before you enter into another contract. It will save you money in the long run more likely than not. I have been practicing law in the San Francisco Bay area for approximately 35 years and expert in the area in the category in which your question is placed. I feel I can help you in this matter and if you wish to consult with me please contact me at 925-945- 6000.

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Answered on 6/19/04, 10:57 am
Gary Redenbacher Redenbacher & Brown, LLP

Re: I hired an unlicensed contractor

I agree with Bryan Whipple's assessment. I would add that another thing you can do is to make a complaint to the Contractors State License Board and hope that they will find the guy and force him to pay you back. Don't hold your breath, but it happens sometimes and it doesn't cost you anything.

The back of your checks are significant to any hope of getting paid back. There's a good chance that he cashed the checks where he banked. If the back of the check shows a bank, it would be worth, at the least, going to small claims court and getting a judgment (it's limited to $5000). Small claims court is really easy, really cheap and really fast. You could then use the judgment to levy on anything he might have at that bank.

I notice that Mr. Olden suggests a fraud cause of action because it's not dischargeable in bankruptcy. This is true, but the practical reality is that people rarely declare bankruptcy if there is only a $5000 judgment against them. (Then again, a lot of deadbeats have debts all over the place and this could be the straw that breaks the camel's back.) The other practical difficulty is that a fraud claim isn't automatically nondischargeable. You'd have to bring an "adversary proceeding" in the bankruptcy court to have the debt declared nondischargeable. This is like a small trial and would cost at least several thousand dollars.

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Answered on 6/19/04, 2:42 pm
Thomas W. Newton Tims & Newton

Re: I hired an unlicensed contractor

Let me add my two cents to my colleagues. Under the Contractors License Law you can take the unlicensed contractor to court to recover ALL compensation you paid. (Business & Professions Code 7031b). The practical questions of litigation costs and the �contractor�s� ability to respond to a judgment are important, but be aware that the code allows you damages beyond normal breach of contract damages.

Best of luck, and feel free to call if you have further questions.

Now the inevitable caveat: The foregoing analysis is offered as an accommodation only, and does not constitute a legal opinion based on comprehensive review of all the facts, documents and law related to the issue. No attorney-client relationship is expressly or impliedly formed by provision of the foregoing information.

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Answered on 6/19/04, 4:17 pm


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