Legal Question in Construction Law in California

Re: Any ''breaks'' for the unlicensed contractor?

There are very, very few breaks for unlicensed contractors. A few years ago the statute simply said that one needn't pay an unlicensed contractor for work performed. The legislature then got even more serious and said that people not only didn't have to pay an unlicensed contractor, but that they could also sue to get back anything they had already paid that unlicensed contractor.

The most common reason one needn't be licensed is if the total project costs less than $500. Other than this, the only hope is if your husband can prove that he was an employee rather than a contractor. This is a pretty tough road, though. If he was receiving only an hourly wage, this is, however, a possibility. It isn't quite so simple as this, but a good lawyer could analyze whether he was actually an employee rather than a contractor.

There is one other worry that is even more serious: it is a criminal offense to contract without a license.

You asked if he needs a lawyer. It's never a bad idea to get a consultation. I doubt that there is too much that a lawyer could do regarding liability. If he is unlicensed, there are so few defenses. A lawyer may be able to reduce the damages, though, or keep your husband out of jail should this crop up.

Re: Any ''breaks'' for the unlicensed contractor?

California Business & Professions Code Section 7031 not only provides that an unlicensed contractor can be sued for such a refund, but prevents him or her from seeking payment. Unfortunate though your situation might be, there are no 'breaks'. There might be ways to negotiate a settlement that includes dismissal of the action and only partial payback, but if it goes to be heard, you're without a defense.