Legal Question in Construction Law in California

Re: Home remodel

There's not enough information to answer your question. If she says she is going to sue, then, supposedly, you somehow breached the contract in a significant way. It does sound, however, like you received payment before you were legally entitled to payment. By law, contractors are not supposed to be paid for work on home improvement jobs that has not yet been performed (except for a $1000 down payment or 10% of the contract price, whichever is less, at the beginning of the job).

Re: Home remodel

Who knows? What does the contract say? Lawsuits are expensive; there's some chance she won't sue, but this is an obvious example of poor communication. Both of you should re-read the contract, then sit down and negotiate a settlement based on the contract and avoid enriching a couple of lawyers.