Legal Question in Construction Law in California
general contractor terminate without cause
Can a general contractor terminate a subcontractor on a project that he has an executed subcontract on without cause or merit ?
3 Answers from Attorneys
Re: general contractor terminate without cause
No. You have a contract. The terms of the contract govern the relationship of the parties and (if it's a good contract) control what happens in the event of a breach. Of course, the general can buy your contract out, but if he refuses to abide by the terms and payment options without good reason, he's breached it. If you've complied with all of your obligations, you should have grounds to sue for breach of contract. If you haven't complied, you may be sugject to a cross-complaint. Good luck.
Re: general contractor terminate without cause
Well, I'd say the answer is "yes and no" for these reasons: The contractor can breach the contract and bring in someone else to perform the subcontract, and the subcontractor cannot go to court and get a restraining order or injunction to stop it, nor could, I suppose, the owner. On the other hand, doing this would be a breach of contract, and the contractor would be liable to the sub for damages, probably equal to his lost profit and any expenditures made in preparing to perform.
Re: general contractor terminate without cause
If a general contractor terminates a contract without legal excuse, he risks being in breach of contract and will owe the subcontractor damages for that breach. This assumes, of course, that the subcontractor sues the general contractor for breach.