Legal Question in Construction Law in California

Civil law -Contracts

If a contractor is hired by a Realtor, and does not provide the homeowner or the Realtor a contract, (it is verbal), but the amount is for over the $500 allowance as per CA state B&P7159 can he be sued for civil damages?

In performing the contracted work, the terms were to be paid out of escrow or 90 days after completion, yet he provided no proof he was completed, no invoice was submitted to the Realtor or the homeowner and he sued in small claims after only 50 days- thus violating his own verbal terms.

If so would the case be violation of contract? and what would the courts do for not submitting terms/contract in writing? Can he be held liable for damages for violating these terms?

What role of responsibility does the Realtor play?


Asked on 10/21/07, 9:42 pm

2 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Civil law -Contracts

Any defenses you had to the suit in Small Claims (such as the Realtor's lack of authority, or that the debt was not yet due, or that it was uncollectibe because barred by failure to comply with the B&P Code) should have been raised at trial. If you did raise them and still lost, the judge probably thought you got your money's worth and were not entitled to relief on some technical ground. There are plenty of legal theories upon which the Small Claims judge could rest his or her decision to give judgment to the contractor despite these defenses, including quasi-contract. If you think you have been wronged, by all means file an appeal in the Superior Court. You are entitled to trial "de novo" if you file a timely appeal, but be forewarned that the outcome will no doubt reflect the inherent merits of the contractor's claim for payment rather than some technical deficiency.

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Answered on 10/21/07, 10:27 pm
Michael Meyer Law Ofc. Of Michael J. Meyer

Re: Civil law -Contracts

To answer your technical question, "home improvement contracts" are, by definition, between the contractor on the one hand and the owner or tenant on the other hand.

The definition does not include "realtor." That's because the home improvement law was enacted to protect unsophisticated homeowners. Since a realtor isn't the owner of the home in question, and since a realtor works in the real estate industry and is therefore presumed to be sophisticated in these matters, the realtor is not afforded those protections.

So, no written contract is needed and no violation of B&P 7159 arises.

That doesn't mean he cannot be sued or counter-sued. It merely means that violation of 7159 won't be a successful component of those suits.

Good luck.

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Answered on 10/22/07, 2:23 am


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