Legal Question in Construction Law in California

Re: Home Improvement Contract

You have asked several questions. Let's take them one at a time.

Also keep in mind that the amount at stake is going to depend upon whether you decide to move forward with litigation or not. Yes, litigation. Contractors never (ok, very rarely) cooperate unless they are forced to do so. We generally have to file claims with the CSLB and sue the contractor in Superior Court just to get the contractor to pay attention.

Regarding the arbitration provision. It will depend upon how it is drafted. A well-drafted mandatory arbitration provision will require submission of all disputes related to or arising out of the contract in any way to be submitted to binding arbitration. If the clause is poorly drafted, you might be able to get around it by suing the contractor for fraud in the inducement, which means that you are alleging that he defrauded you into entering into the contract, and therefore, the arbitration provision would not be applicable.

However, there are many advantages to arbitration. It is generally less expensive than litigation (in court) and usually much faster. There are some pitfalls, with the most notable two being: (1) the right to discovery is usually very limited, and (2) the decision is binding and non appealable and not usually subject to later review by the superior court.

You may consider filing a claim against the contractor with the CSLB - the Contractors State License Board. They will move slowly unless the facts are particularly heinous. But if the contractor cares about his license, a complaint filed at the CSLB may be a good first step.

Getting back your money from the contractor will likely be the most difficult part of your pursuit. Most contractors, in our experience, are flakes and have already spent every penny that they received. There are ways, of course, to faciliate the extraction of money from unwilling contractors.

There are many other possible ways to proceed. A full review of the underlying facts and documents would be necessary to give you a complete analysis. If you decide to move forward, find yourself a decent litigator familiar with issues related to failed construction contracts. We are litigators with extensive experience in real estate issues, including mechanics liens, construction disputes, and CSLB claims. If and when you are ready to proceed, feel free to call or email for a no charge consult.

Good luck.

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Re: Home Improvement Contract

You can give written notice of breach and a stop work demand to him. You can get someone else to finish, and then try to arbitrate or sue to recover any amounts overpaid the first contractor, if he won't return them upon demand. There is no magic wand to make this better, only legal action, time and effort. Feel free to contact me if interested in doing it right.