Legal Question in Construction Law in California

Contractor Commenced Work Illegally

How does a consumer quickly get compensated from a contractors insurance for work completed illegally.(without permits, workers comp., subcontracted to contractors without license) I've contacted the CSLB, DBI and Insurance Company? I am currently out of 200,000.00 and the work on my home is not complete.


Asked on 4/10/07, 1:35 pm

2 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

Re: Contractor Commenced Work Illegally

You don't. 'Quickly' is not part of the definition of the process.

You bring a claim on their bond, if there is a bond, which may be only a couple thousand dollars which will be shared among all claimants [you demanded proof of bond and amount as part of your 'due diligence' checking of them, right?]

You bring a lawsuit that would then invoke coverage by any insurance they had, assuming they had any, which is not likely [you demanded proof of insurance and amount as part of your 'due diligence' checking of them, right?]. You hope that someday you recover your losses, which will include your attorney fees if there was a written contract with a fee provision [there was, right?]. In the meantime, you pay another contractor to finish the job [demanding the proofs required, right?].

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Answered on 4/10/07, 2:31 pm
EZRA FRUCHTER LAW OFFICES OF E. LEONARD FRUCHTER

Re: Contractor Commenced Work Illegally

Mr. Nelson hits the nail on the head!! If the contractor is licensed, he has a $12,500 bond with the contractor's license board that you can make claim against. Ther is no insurance of which I am aware which will cover a contractor's breach of contract. For example, if a contractor puts on a new roof and the roof leaks, the insurance may pay to repair the water damage, but will not pay to fix the roof! You can sue the contractor for damages; the process takes a lot of time, costs money, and any resulting judgement may well be uncollectible.

Best of luck

E. Leonard Fruchter

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Answered on 4/10/07, 7:15 pm


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