Legal Question in Business Law in California

Legal action for what? Your painting contract, or the neighbor's possible action for malicious damage to his gate paint? The limitations periods are:

Oral contract - two years from date of breach;

Written contract - four years from date of breach;

Damage to real property - three years.

There may be other potentially applicable statutes of limitations, such as defective workmanship, and other rights and remedies such as for doing contracting work without a license. Also, the beginning date and possible interruption of the running of the clock on a statute of limitations may require a more in-depth legal analysis. I suggest you either ask a more detailed question or see a local lawyer for an initial consultation.