Legal Question in Construction Law in California

Re: Not a Licensed General Contractor? Owner/Builder?

Sue him now for a refund of all monies paid and claimed against your property as an unlicensed contractor is not entitled to payment. Yes fraud would be a cause of action. Contact me directly. 18 years experience.

Re: Not a Licensed General Contractor? Owner/Builder?

Is the contractor licensed? If he is not licensed (or not properly licensed), then you have a statutory right to a refund of all monies paid to him. This is regardless of the work that was done.

Even if he is licensed, then he is obligated to account to you of how your monies were expended. He cannot arbitrarily withhold releases, etc.

Not only would you file a complaint with the CSLB (and get ready for the process to take many months to move forward), but you will also file suit against the contractor in Superior Court.

The process can be lengthy and complicated. Depending upon the amounts involved, you may want to consider retaining competent counsel familiar with construction law.

Let us know if you need help.

Re: Not a Licensed General Contractor? Owner/Builder?

My advice is to seek out and hire an attorney who practices construction law and is familiar with the field of construction such as our firm. Please check my profile and call our office and ask for me. I would be happy to speak with you about the matter and our office serves all of California. I suggest that if he is not properly licensed that no further payments be made. However, caution is in order because if he is properly licensed as required for the work done in your contract and you fail to pay him then you could be found in breach. Therefore I suggest an attorney review this claim before payment is withheld.

The first thing I would do is check the California Contractors State License Board website and verify and print out his license and bond information. Once you verify that he holds only an electrical license (I am assuming he is a specialty license C-10) then if he performed work outside of his classification when he was not properly licensed at all times he will not be able to recover in a lawsuit against you for the balance (See MW Erectors, Inc. v. Niederhauser Ornamental and Metal Works Co, Inc. (2005) 36 C4th 412).

Also if he was not properly licensed and unlicensed and/or his subcontractors were not licensed then I would suggest that you file a lawsuit and recover all of the money that you paid to him. Under Business & Professions Code 7031 an unlicensed contractor must disgorge (give back) all compensation that you paid to the unlicensed contractor-even if you knew he was unlicensed when you hired him. (See Construction Fin., LLC v. Perlite Plastering Co (1997) 53 CA4th 170).

In any event, even if he is properly licensed, the final payment should not be made until he provides you with a conditional final release of all liens. Also you should make sure that your final payment check is issued jointly and names the prime contractor and any and all subcontractors who filed 20 day preliminary notices on your project. You want to protect yourself against any claims by his subcontractors and the final release and joint issued check will do that.

Thank you for your question and I look forward to speaking to you should you seek to pursue any claim against the unlicensed contractor or seek to withhold payment.

Sincerely,

Jim Schaefer

Attorney at Law

Re: Not a Licensed General Contractor? Owner/Builder?

Under Business and Professions Code Section 7031, the facts you described indicate that you could sue for a full refund. An electrical contractor cannot act as a general contractor. The response by my colleague Mr. Schaefer was very thorough, so I will not repeat the sound information he has already given you. I am a construction attorney with an office near your town, so feel free to contact me if you require further assistance with this matter.