Legal Question in Construction Law in California
Is there a statute of limitations ?
I am in San Diego, CA.I have had deposits on hold with a stucco contractor and an electrician since 1997 while the property went through a series of litigations with the city and then probate. Both contractors agreed to keep the deposits on hold until matters were resolved. None of us could anticipate how long that would take. The electrician was paid 5,000 which was 25% of the contracted amount for the job. No electrical work had been done on the building and the contract had no start or completion date on it. The stucco contractor had removed the old stucco which is listed as 3900. of the total contract price and he had collected advances totaling18,000 of a 20,000 contract for removal and replacement of new stucco. In February of 2008 the city ordered the building demolished and now that there is no chance of renovating the building do I have a legal remedy to get the 5,000 advanced to the electrician and the 14,000 advanced against work not yet performed by the stucco company refunded?
2 Answers from Attorneys
Re: Is there a statute of limitations ?
There is also the question of awaiting for the ability to finish the work, which never came. Therefore the contractors may be considered your fiduciaries.
If you would like to discuss this further please call my office at your earliest convenience.
JDH
Re: Is there a statute of limitations ?
Yes, I think so; the contractors may try to raise the statute of limitations as a defense, but bear in mind that the statute "begins running" only when the plaintiff's cause of action arises. If money is given to another to hold until litigation and permit problems are resolved, there is no breach of the contract and no cause of action until the litigation problems are over, the plaintiff requests the work, and defendants fail to perform or refund the money. There is probably also an argument based on trust theory that the contractors hold the money in trust and no breach occurs until the trust beneficiary requests return of the funds, or performance of contracts, and the trustee-contractor refuses.
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