Legal Question in Construction Law in California
Am I responsible for my husband's contract agreement?
I am married to a Home Improvement Contractor who's not licensed. My husband and a client agreed that my husband would do a home improvement project for pay(over the $500. limit). The job went sour, and now the homeowner is suing me and my husband for not completing the job. I was wondering if he has grounds to win a judgment against me. I am not registered as a business owner, I never entered into a verbal or written contract with this person, I don't really even know him, I never accepted any money from him, We never discussed this project. On what grounds could he sue me?
2 Answers from Attorneys
Re: Am I responsible for my husband's contract agreement?
The unfortunate truth is that anybody can sue anybody for anything anytime. This doesn't mean, however, that they'll win and a decent judge (I'm assuming that this is in small claims) should throw out the claim against you if you really didn't have anything to do with the work. On the other hand, it is likely that your husband will get a judgment against him (the law is really, really tough on unlicensed contractors) and the client can probably satisfy that judgment with any community property that you and your husband own to the extent it isn't exempt under the law. So, for example, it would be possible for the client to force the sale of your car, assuming that it is community property and exceeds any exemption amount, to satisfy the judgment.
Re: Am I responsible for my husband's contract agreement?
I suppose this business was operated as a proprietorship rather than, say, a corporation or LLC. If so, there's potential personal liability for both of you---
Faimily Code section 910 provides (in part):
"(a) Except as otherwise expressly provided by statute, the community estate is liable for a debt incurred by either spouse before or during marriage, regardless of which spouse has the management and control of the property and regardless of whether one or both spouses are parties to the debt or to a judgment for the debt."
Because of this provision, it seems to me it is both possible and unnecessary for the homeowner to sue you as well as your husband. It is possible because you are jointly liable for any harm the homeowner has suffered, and unnecessary because a judgment against your husband alone would result in a judgment lien on exactly the same property as does a judgment against both.
During the course of the lawsuit, the addition of your name probably won't make a lot of difference. You can and probably should mount a common defense using the same lawyer. There might be a little more discovery, since there are two parties to whom interrogatories can be addressed and two parties who might be deposed.
Your lawyer might be able to negotiate your dismissal with opposing counsel or by arguing misjoinder to the judge.
Fortunately, you're probably safe from the criminal sanctions than can be, but seldom are, pursued by DAs for violation of the contractor licensing statutes.
If the matter is settled before trial and judgment, be sure the settlement agreement releases both of you.
Tell your husband to get a license, or incorporate his business.
If you have substantial separate-property assets (assets you own as separate rather than community property), consult a lawyer about whether you are protecting them adequately.
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