Legal Question in Construction Law in California

Subcontractor rights

My company was contracted by a general to work on a home remodling job, the job required special paints due to the homeowners allergies. The prime contractor and owner were both told the products durability was questionable and recommended against using. Sub was told to go ahead anyway. The job was finished, lien releases and final payments all distributed. Two years later the owner complains that paint is peeling and sues the sub, by-passing the prime, for ''failure to complete work and honor warranty'', in small claims. He filed a claim with the bond company and was denied due to lack of privity of contract, but was told that if he had the prime contractor join the complaint, then privity of contract could be shown. The owner chose not to do this because then he admits that the sub is really a sub, and not the prime, as he is trying to claim. The sub is a sole-proprietorship yet the owner also named his wife as a defendant. She is not an officer of the company and is not even claimed for tax puposes.

Please tell me if this is all legal, and if its not, under what law is it not. Thank you for your time and help.


Asked on 6/17/04, 1:04 pm

1 Answer from Attorneys
Michael Olden Law Offices of Michael A. Olden

Re: Subcontractor rights

Personally, I would go after his touche. Due until the fact you are not in this action it would be the sub the would do it. The sub should cross-complaint against the individual for fraud, abusive process, and breach of contract, and negligence. This cross-complaint should be both by the husband and the wife. The wife can come in show that she has no interest in the company but you better make sure of that. This may scare the guide to drop his suit. The sub then it would either drop his suit or Gulfport on the basis of all of the problem C. sad because of the suit against him and sue for damages but have to show real damages.I have been practicing law in the San Francisco Bay area for approximately 35 years and expert in the area in the category in which your question is placed. I feel I can help you in this matter and if you wish to consult with me please contact me at 925-945- 6000.

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Answered on 6/17/04, 6:41 pm


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