Legal Question in Construction Law in California

Re: contract billling

The answer is yes, the heating company can "go after" (i.e. sue) the owners. However, the owners are likely to win, unless the subcontractor (heating company) has timely filed a mechanic's lien, which could be enforced against the property (but not the owners personally). Even so, the lien is likely to have expired through passage of time.

For the basics on mechanics' liens, see Civil Code sections 3110-3154 at your county law library. Some general libraries also have the codes in their reference collections. Section 3144 deals with the duration of liens.

If you are sued and fail to answer properly, you can still lose by default. Therefore, if you are served with a lawsuit, see a lawyer at once.

Re: contract billling

Based on the facts you represented, it's very unlikely that a subcontractor could win such a lawsuit. Anyone can sue anyone for anything at anytime. The question, however, is whether you can win.

To enforce a mechanic's lien, a subcontractor must have served a preliminary notice on the owner (assuming that there is no contract between the owner and the subcontractor) and filed his lien in timely fashion and foreclosed on the lien in a timely fashion. Plus he would have to prove that he actually installed labor and materials into the project.

There are a few obscure theories of recovery that the subcontractor could attempt, such as unjust enrichment or quantum meruit, but I think these are real long shots with little legal support.