Legal Question in Construction Law in California

Re: Contractor Hiring Unlicensed Sub to Complete job/Job abandonment

Please review my profile and contact me for a no obligation consultation. I do suggest that you consult with an attorney because you may be able to recover your full $60,000 that you have paid in addition to other damages.

With that said, Business and Professions Code Sec. 7031 is the basic statute that covers actions against unlicensed contractors.

In addition B & P Sec 7114 covers aiding and abetting and unlicensed contractor and Code of Civil Procedure 1029.8 allows for treble (three times) the amount of damages, up to a maximum of an additional $10,000, for any unlicensed contractor who causes injury or damage to another person as a result of providing goods or performing services for which a contractor's license is required pursuant to Bus. & Prof. Code 7000 et seq. In addition attorney fees are recoverable under CCP 1029.8.

Under B & P 7031(a) an unlicensed contractor may not maintain an action (sue you) unless the person can show that he/she is licensed at all times. When the licensed contractor aided the unlicensed contractor his license may have been revoked by operation of law so that he is also not licensed.

In addition, (This is what really stings the other side in your situation) is that B & P 7031(b) states that you may sue the contractor and recover all the money you paid to him for work which was done by a unlicensed contractor, even if the work is good work. This means you may sue and get back the $60,000 you paid if it was done by an unlicensed contractor. This applies , even if you knew the contractor was unlicensed or used an unlicensed subcontractor when you hired him. (Const Fin, LLC v. Perlite Plastering Co (1997) 53 CA4th 170.

Of course the other side will have counter arguments to your complaint the first probably being that he is an employee and not an unlicensed subcontractor.

Thank you for your question and please contact me if you wish to pursue this further.

Re: Contractor Hiring Unlicensed Sub to Complete job/Job abandonment

Where {B&P} is California Business and Professions Code,

(B&P 7107 + 7109 + 7110 + 7114) + (B&P 17200) = $$ for you.

If this is a contract for home improvement, the first subset is likely to grow substantially.

Don't forget to check your contract for a performance bond. Have fun with google and then call a local attorney.

Re: Contractor Hiring Unlicensed Sub to Complete job/Job abandonment

I agree with the previous answer, and would like to add a few afterthoughts:

First, use of an unlicensed person can in some cases be justified based on their being an employee rather than a subcontrator, working under the prime contractor's license, or doing parts of a job that don't require a license. In you case, it's very unlikely any of these exceptions will apply, but watch out for a defense based on such grounds.

Second, care ful reading of the contract itself is advised. Look for clauses covering breach, default, time of essence, penalties or liquidated damages for delay, attorney fee, mediation or arbitration clauses. Any of these could affect your rights and strategy.

Finally, if money damages of $7,500 or less would be sufficient, consider Small Claims Court.

Re: Contractor Hiring Unlicensed Sub to Complete job/Job abandonment

A lawsuit, but you knew that answer going in, didn't you? Unless you can get your contractor to complete, repair, pay for repair or otherwise satisfy you, it is your only other option to losing money. It may help to involve an attorney now, in negotiations, to make clear you are serious. When you're ready to take action, feel free to contact me.

Re: Contractor Hiring Unlicensed Sub to Complete job/Job abandonment

What damages resulted from the delay in completion? Don't pay the balance until you have a consultation. Contact me directly.