Legal Question in Construction Law in California
Contractor sueing for loss of profit
I hired a contractor do remodel a
bathroom and kitchen.
They were done under 2 separate
quotes. They started on the
bathroom first, which was finished
and paid in full.
The contractor's quote for the
kitchen was $21.000,-
I became un-employed and had to
use the money for the rest of the
construction to live off of. So, they
never started the construction of
the kitchen, and I did it myself. I explained to the contractor that I
simply did not have the money to
pay for the job to be done.
He is now saying he will sue me for
$5400,- loss of profit, and put a lien
on my house, which I am in the
process of selling.
Where do I stand?
2 Answers from Attorneys
Re: Contractor sueing for loss of profit
If you are buried in debt, you may want to consider filing bankruptcy. You may be able to claim an exemption in the equity in your property, if any, and keep any money you get from the sale, while discharging the contractor's bill with all your other debt.
Re: Contractor sueing for loss of profit
He likely has a valid claim against your for breach of contract in which he will be entitled to recover the price of the contract less the cost avoided. Since he did not improve the property, his damages are measured solely by his expected profit on the project.
However, since he did not actually improve the property, he has no rights to attach a lien to the property.
Best of Luck.
www.SoCalConstructionLaw.com
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