Legal Question in Construction Law in California

bad workmanship

I am a contractor. I built a new home for myself but ended up selling it after completion. My insurance does not cover me for spec homes. MY problem is that I had a hardwood flooring contractor install about 1600 square feet of flooring. Four months after the new owner moved in he noticed bad seperation all over. I called the flooring contractor so he said he would fill all the gaps and resand the floors. So I had to move all the furniture out etc. We did the work while the new homeowner was on vacation. He returned home and was not 100 % happy with the work so I told him to see what would happen the floor in the next coming months. So about four to five months again he noticed the cracking and seperation and shrinkage even worse than the first time. I got a inspector to look a the floor and got a report a few months ago. He thought the floor was installed under wrong enviorment and had installation defects. He thought the floor could have been repaired . Since then the floor has got ten times worse. I have to install a new floor to save a law suit from the owner. I will have to pay for it out of my own pocket plus temp living. Aprox $30000.00 Can I get money from the floor contractors insurance can I file a claim myself Thank you


Asked on 5/19/07, 1:14 pm

3 Answers from Attorneys

Benjamin Berger Berger-Harrison, A Professional Corporation

Re: bad workmanship

You certainly have a claim against the flooring contractor. Even if he had insurance, it is an art to bring the claim in such a way as to get the insurance company to pick up the claim.

Did you have a written contract with him? Did it have an attorney's fees provision?

You should consult with an attorney. I worked for my family's construction business until I was 29 years old (which is when I became an attorney). I would like to discuss the case with you.

Feel free to contact me by email or by telephone.

Regards,

Ben

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Answered on 5/19/07, 3:13 pm
Jim Schaefer Schaefer & Associates

Re: bad workmanship

You definitely have a claim against the sub directly for breach of contract, breach of warranty, negligence, claim against a contractors bond and possibly a claim against the insurance company if you were an additional insured under the policy. I am assuming that an additional insured certificate was issued by the sub for your benefit. I would immediately make a claim against that policy if an additional insured certificate was issued. Just contact the claims department of the insurance company and send a written claim to the claims department and his insurance broker who issued the certificate.

Next, you should demand payment from the sub through a written letter. An attorney should draft this demand for you because it should be worded correctly so that you do not make any admissions of liability etc.

Next, a lawsuit against the sub should be filed and a claim against the contractor license bond as well.

Probably the main thing to consider is whether the attorney fees are recoverable. Check your contract and look if attorney fees are awarded to the prevailing party. Attorney fees may also be awarded by statute under some circumstances.

Also if the sub was not properly licensed or knew of the poor installation you may have additional claims including perhaps treble and punitive damages in some situations.

Please check my profile and give me a call if you wish to discuss further. I was a contractor in a family business for over 15 years before I became an attorney and I am readily familiar with construction law. I went to law school to help people just like yourself in similar situations.

I may also be able to help in the negotiations with the homeowner so as to reduce the costs associated therewith.

You should contact a construction attorney promptly so as to avoid any statute of limitations problems with your claims.

Thank you for the question.

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Answered on 5/23/07, 3:07 pm
JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

Re: bad workmanship

You can file a claim against the subcontractor's insurance policy directly, if you are an additional insured under the policy. You should be, if you set this up correctly. However, even if you are an AI under the policy, there is likely an exclusion for the subcontractor's breach of contract (which this likely will be considered) or if the sub's work does not cause property damage (which this arguably is not - it's just a lousy job, and insurance doesn't cover that - a performance bond would have to have been purchased for that).

Whether or not you were an AI under the policy, you always have the right to sue the sub directly. You will allege breach of contract, breach of warranty (several of them), and negligence. If the sub has converage (insurance), the negligence cause of action (if drafted correctly) should trigger that coverage.

You can also make a claim against the sub via the CSLB, but that's not an insurance claim. That's just something to get additional leverage against the recalcitrant sub.

Move quickly - there are a variety of statutory deadlines at issue. Seek out the advice of a competent attorney who understands contractor law.

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Answered on 5/20/07, 10:11 am


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