Legal Question in Construction Law in California

Re: Bond Company Responsibility

I would have to look at the ruling, but did you make a claim on his bond?

Best,

Daniel Bakondi, Esq.

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Re: Bond Company Responsibility

You are mis-interpreting the judgment. The judgment was against the contractor because he is the one responsible for the work. The bond company is not responsible for the work, they are their to pay this judgment if the contractor does not. The bond company is what is called a surety. They are not proper defendants in the lawsuit because they are only liable if and when the contractor does not pay the judgment. If he fails to pay the judgment immediately, THEN make a claim against his bond, and they should pay with a court judgment.

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Re: Bond Company Responsibility

I can't say for certain that the small claims judge was correct. However, the license bond surety is not liable for every error of the contractor.

The bond is liable only under certain conditions. A code section in the Contractor's State License Law governs. The relevant portion says:

" *** The contractor's bond shall be for the benefit of the following:

(a) A homeowner contracting for home improvement upon the homeowner's personal family residence damaged as a result of a violation of this chapter by the licensee.

(b) A property owner contracting for the construction of a single-family dwelling who is damaged as a result of a violation of this chapter by the licensee. That property owner shall only recover under this subdivision if the single-family dwelling is not intended for sale or offered for sale at the time the damages were incurred.

(c) A person damaged as a result of a willful and deliberate violation of this chapter by the licensee, or by the fraud of the licensee in the execution or performance of a construction contract.

*** " (Cal. Bus & Prof. Code Sec 7071.5

Garden variety negligence is normally not enough to recover from the license bond. Most of the "violations" of the chapter referred to in the code section deal with willful and deliberate conduct.

Accordingly, either the small claims judge didn't find a violation of the contractor's license law serious enough to reach the bond or perhaps simply didn't know the law. It happens.

I'm afraid there's little you can do with the license bond surety. A small claims plaintiff is not entitled to appeal judgment entered in favor of a defendant.

Be aware, though, that the contractor's license can be suspended if he fails to pay a judgment entered against him arising from contracting activities. You might contact the license board to see if they can help.