Legal Question in Construction Law in California

Collection of past due funds for labor contracts-commercial

My company installs theater seats for a California seat manufacturer as a sub-contractor. This seating manufacturer collects my labor funds from the customer and I then bill the manuf. for my labor. The seat manuf. comingles my labor money with their other funds and then will not pay me until I am almost out of business due to lack of funds. I travel all over the US for this company and expenses are great. I need an Attorney in San Diego who will resolve over $65,000. in past due invoices. I have lost a job over this because I lack funds for labor & expense. I would like to bill them loss of income if that is legal, also att. fees & court costs. Thank you.

2/27/02


Asked on 2/27/02, 3:42 pm

1 Answer from Attorneys
Gary Redenbacher Redenbacher & Brown, LLP

Re: Collection of past due funds for labor contracts-commercial

There aren't enough facts to give you a definitive reply, but some thoughts jump to mind. First, I sure hope you're licensed. Second, there are a number of prompt payment statutes that you might be able to take advantage of. These statutes have some pretty severe penalties if they've been breached. Penalties include 2% per month ON TOP of interest plus mandatory attorneys fees to the prevailing party for failure to make a progress payment on time.

From what you've described, it sounds like you can trigger the prompt payment statutes. For the most part, these statutes are triggered if the contractor (the manufacturer) is paid by the owner, but the contractor then fails to pay the subcontractor within so many days of receiving the payment. See B & P Code 7108.5. By the way, diversion of funds can be a criminal felony. PC 454(b).

I know of two attorneys in San Diego who might be able to handle this kind of work. First try Chris Seaman with Kimball Tirey, 619-231-1422. The second is Mark Baker with Hayes Simpson Greene. His number is 619-702-4314. Mark usually does defense work, but the firm may also do plaintiff's work.

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Answered on 2/27/02, 5:27 pm


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