Legal Question in Construction Law in California

cut and run

My husband decided to help a friend remodel his home to sell it. He has done all the tile and then some.BUT they have an oral agreement that when the house sells he will recieve a lump sum of money for his work. I am very uncomfortable with this arrangement and feel that the homeowner is going to cut and run. This will leave us destitute with no recourse. I have asked the homeowner to put in writing what the aggreement entails and he puts me off. Now that we are near completion the homeowner has grown real quiet. No more does anyone hear him say the words of how my husband is going to profit etc.. The property is in the estate of his mother's estate and he has a disabled bros. and a lawyer who acts on his bros. behalf. Should I let this lawyer know of the arrangement made? What can I do?


Asked on 4/18/06, 4:38 pm

3 Answers from Attorneys

JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

Re: cut and run

You can do nothing. You are not the one that did the work.

Is your husband a licensed contractor? If so, then he should consider filing and recording a mechanic's lien. Then, he will need to file suit to foreclose on it timely.

If your husband is not a licensed contractor, then he is in a dangerous situation indeed. Legally, the homeowner owes him nothing. The law does not provide a remedy to a person who is unlicensed and who does work on a project for which a license is required.

If your husband is just "working" for the other guy, then he should make a claim against him now and then follow it up with a lawsuit.

Don't waste any time. Any time people (especially people that owe you money) won't put something in writing that should be in writing, you need to think twice.

Good luck.

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Answered on 4/18/06, 9:00 pm
Gary Redenbacher Redenbacher & Brown, LLP

Re: cut and run

You are right to be very suspicious. And Mr. Guerrini's warning about unlicensed contractors is very true. The law won't help him at all if he is unlicensed. If your husband is unlicensed, he MIGHT be able to show that he was an employee rather than an unlicensed contractor, entitled to an hourly wage. But this isn't realistic if he isn't, in fact, working for an hourly wage. You also have to be aware that working as an unlicensed contractor is a criminal offense. You don't want him mixed up in something like this.

If he is licensed, then he should immediately record a mechanic's lien for the value of the services provided. Bear in mind that he will have to sue on the lien within 90 days of recording it. This can get quite complicated, so you really should consult a construction law attorney.

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Answered on 4/19/06, 3:50 am
Philip Iadevaia Law Offices of Philip A. Iadevaia

Re: cut and run

If your friend was the homeowner/contractor, then your husband provided services to him which benefited his house by increasing its value. While you would not call it an employer-employee relationship for purposes of skirting the requirement of being a licensed tile sub-contractor, your husband is entitled to the value of his services as a laborer.

The concept in the law is called ''quantum meruit" and means ''as much as is deserved.'' It is based on the concept that no one who benefits from the labor and materials of another should be unjustly enriched thereby. Your friend has been unjustly enriched by your husband's services.

I would demand payment immediately in the form of a trust deed for the amount owed. If the neighbor refuses to give you a trust deed, then sue in court right away under quantum meruit. You may be able to get around the licensing issue on the grounds that the neighbor hired your husband as a friend and knew he was not a licensed contractor. You may add a cause of action for fraud as well. You may be able, at least, to force a settlement. Good luck.

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Answered on 4/19/06, 11:26 am


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