Legal Question in Construction Law in California
defunct contractor
A subcontractor business has
recently closed unexpectedly without
completing work. Unfortunately, I
had given him around $50,000 to
purchase equipment for the house. I
also had given him $40,000 worth of
my own equipment to install (but is
still at his warehouse). The office is
closed and all the phone numbers
have been disconnected. How should
I proceed? How can I at least get
my equipment, if not the money?
Thanks.
4 Answers from Attorneys
Re: defunct contractor
With difficulty. File suit and seek a court order for return/possession of the property and money. You're going to need counsel to do it right. If they are defunct, meaning broke, you know the answer to getting back any money - it will depend on whether you can get to the owners' assets. Feel free to contact me if interested.
Re: defunct contractor
Call - quick! This sounds like the money and the equipment are going somewhere or he's filing bankruptcy or something else very soon. My office is in Fresno and I would be pleased to talk to you about this case. If I'm not close enough, call a reputable attorney in your area and don't wait.
Re: defunct contractor
Sounds like he's heading for bankruptcy. Also sounds like you did not require a performance bond on which you could now make a claim.
So the next step would be to check your contract with him to see what means of dispute resolution you agreed to use. If you agreed to arbitration, start that process now. If you did not, now would be a fine time to file an unlimited civil lawsuit in Superior Court for breach of contract and conversion (theft of your "equipment") and seeking both damages ($50,000+) and replevin (return of your "equipment.")
Of course, you should see a local attorney asap.
Re: defunct contractor
File suit immediately for conversion in addition to breach of contract, get an injunction to prevent defendant from stopping you from taking the equipment back and a lien on all equipment in the warehouse. Contact me directly. 1.619.222.3504.