Legal Question in Construction Law in California

New company owner won't honor roof warranty
My mother-in-law hired a licensed contractor to re-roof her mobile home in 1998. The company gave her a written warranty: 10 years labor/ 15 years materials. This past winter the roof failed. My MIL called the same company and a guy came out saying he was the new owner. He inspected the roof, said it was a faulty installation, but refused to honor the warranty.

The company name is the same, same address, same phone number, although they are using a new contractor's license number. Even their website advertises ''in business for over 20 years!'' Isn't the new owner liable for the liabilities of the business even if they were incurred before he purchased it?

Also: new owner states old owner retired and moved to Mexico, so not much chance to pursue him legally.

Asked on 8/15/05, 6:07 pm

3 Answers from Attorneys

Carl Starrett Law Offices of Carl H. Starrett II

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Re: New company owner won't honor roof warranty

The question is almost impossible to answer without knowing more details about the type of warranty, the terms of the contract the details of how the transfer sale of the business.

Is this a manufacturer's warranty? And how did new owner BECOME the new owner? There are ways to purchase a business without being liable for debts of the prior owner.

You need to see a local attorney who can take the time to get into the details of your situation and give you more specific advice.

Answered on 8/15/05, 6:14 pm

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Re: New company owner won't honor roof warranty

You MAY have a case against the "new owner". It will depend on a number of details including a review of the warranty.

It will also depend on some information that you may not have such as the details of the purchase of the company from whom your MIL purchased the roof. If, for instance, merely the company's assets were purchased, the new company would not likely have liability. There is a question regarding the advertising of having been in business over 20 years. That may raise the spectre of either false advertising or that the buyer bought the company in which case the warranty should be honored.

www.LEGALWARRIORS.com

Answered on 8/15/05, 6:53 pm

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