Legal Question in Construction Law in California
Contractor in breach of contract
Since I've terminated my contractor due to breach of contract, I need to know if I could go after the contractor financially. His 5-month delay beyond what stated in the contract has caused us to incur financial penalty from the bank $37,000 for requesting extension beyond the 12-month term loan agreement, mechanical lien from his suppliers, uncompleted works that were already paid for, substandard works that will need to be corrected by subsequent contractor, the penalty of $10,000 inflicted by us for going over the stated date of completion in our contract, and the monies we paid him for material deposit which he have not started the work (materials are at the job site). What is my next step in going after him since the construction is not completed (45% done). Our attorney told us to finish the construction first and then go after him. Is this a viable option or should we go after him now.
6 Answers from Attorneys
Re: Contractor in breach of contract
If you have an attorney then rely on what his is telling you. The advice here is general and not specific to your circumstances. Your attorney should know the details of your case and be able to assist and provide the best advice.
With that said, finishing the job depends on a number of things. First whether you are financially able to do so. Second, whether you can find a contractor to complete the job now when you advise him that litigation is being pursued. Finally, many other circumstances that your attorney probably knows better than any other attorney here. I hope you have an attorney who specializes in construction law. Please feel free to contact me if you seek to change representation.
Re: Contractor in breach of contract
Your first concern is whether or not the defendant has any money (or insurance). If so, it sounds like you clearly have a case.
There are reasons to pursue your claim now and there are other reasons to wait until the job is complete. One would have to know all the details to advise on that issue.
Hopefully you have a written contract that CLEARLY states when the project was to be complete and that provides for attorney's fees to the prevailing party in any dispute.
Re: Contractor in breach of contract
Rely on your attorney's advice. If you want to change your attorney, then do that.
Re: Contractor in breach of contract
I generally recommend that you have the project completed before (or at least during) litigation for several reasons including:
1. That way you know what your actual damages are rather than merely estimates.
2. It's hard to find a contractor to take over a project where he knows there will be litigation and he will most likely have to testify.
3. Unless the contractor has significant assets, you may be better off using your money to complete the work rather than paying your lawyer to obtain a worthless judgment.
best of luck
Re: Contractor in breach of contract
Listen to your attorney.
He or she has likely checked into the payment and performance bonds of your contractor, read the contract language, read the Preliminary Notice on the mechanics lien, and is generally familiar with the facts of your case.
Your attorney is also likely to be a little uneasy at your posting partial facts of the case online when litigation looms.
Re: Contractor in breach of contract
You have an attorney, listen to his advice or replace him. You're not going to get informed advice anonymously for free over the web, only general opinion. If you want a useful second opinion, then consult with someone who can review the facts and documents in detail with you. Then if you think you want to pursue the case differently, you can. Feel free to contact me if interested in doing so, it in SoCal.
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