Legal Question in Construction Law in California

Subcontractor's Remedies Against Owner if Contractor Skips town

I need to know if I can expect to get anything if I go to an attorney. I am a Subcontractor. The Contractor of a job I worked on skipped town with about half of the contract money only(Contract about $23,000). I want to go after the Home Owner for the money I am owed. My orignal price was $10,000. Then the homeowner had me do work T & M (time and Materials) on the siding for about $9,000 during the contract period. Remedies I probably don't have: I filed the Mechanics Lien way too late, no notice was given within 20 days. Second, the Contractor's bond has already been collected on for another one of his jobs he stole on. The owner basically has told me tough luck and won't return my calls.

Wonder if there is any way I can get my money back. The Contract was not tons of money and don't want to waste a lot on an attorney if I really don't have a chance of getting anything. Thank you very much for any help.


Asked on 12/10/03, 6:47 pm

2 Answers from Attorneys

Pamela Scholefield Scholefield Construction Law

Re: Subcontractor's Remedies Against Owner if Contractor Skips town

The first question is whether or not you are licensed for the trade in which you performed work. Assuming that you are, the next question is whether or not the homeowner has paid for the work you did. You said that the contractor skipped town with half of the contract money, I am assuming you mean half of the $23k of the entire contact value. If the homeowner has not paid for the work you did either to the contractor or to you directly, then you have a claim for quantum meruit/unjust enrichment for the value of the work you performed through the original contractor's contract. This is an equitable remedy that the courts will consider when there is no contract (oral or written) between the parties. You also have claims for the value of the T&M work you did directly for the homeowner, although you violated state contractors license laws by not having a written contract - I am assuming your T&M agreement was verbal only. For the T&M work you did directly for the homeowner, you have a claim for breach of oral contract and quantum meruit/unjust enrichment. I am not sure how you have determined that you are outside the timeframe for recording a mechanics' lien. You do not need a 20-day prelim for the T&M work you did directly for the homeowner. Also, your time for filing a mechanic's lien expires at different times depending on whether or not the project was completed or work has ceased and depending on whether or not the owner recorded a valid notice of completion or cessation. If no notices were recorded, you, as an original contractor on the T&M work, have 90 days after completion of the project or 150 days after cessation of work (if the project was not finished)in which to record a mechanics' lien. I am unclear as to whether the T&M work was part of the same project for which you did work for the contractor. If all of this happened in the last few months and you are not certain as to the exact time-frame, you may want to record a mechanic's lien right away because there is a chance that the time has not expired. Investigate the timing immediately and if you (or your legal counsel) determines that the time frame has expired after careful review, then immediately record a release. If you are not licensed for the work you performed then you are SOL. Business & Professions Code section 7031 prohibits unlicensed contractors from collecting money for the work they did. I hope this helps. Please post more details or contact our firm directly if I have misinterpreted you facts or if you have any other questions.

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Answered on 12/10/03, 7:37 pm
Michael Olden Law Offices of Michael A. Olden

Re: Subcontractor's Remedies Against Owner if Contractor Skips town

Very astute question and good information to at least tell you what you already know, chasing after a turn up won't lend too much dollars. If all the sources of money are used up your asking the what good can an attorney do. Minimal. Maybe so, you're incorrect in your assessment right applicable to your mechanic's lien, but probably not. That is one of the most important tools you have to protect yourself. I've been dealing in mechanic's lien lawn of written articles about it for over 30 years. I know your subcontractor in work with her hands and that is the most important thing you doing your business. But it's not, you're running your own business and therefore, it's a really, really important for you to tend to the business side and make sure all of the notices are properly filled out and timely given, but the lien is timely filed so that your lawsuit can be timely prepared in filed. Get to the bonding company very early. By the way even though the bond was used up on one matter that doesn't mean that your out the window on the bond he just have to know how to argue it if at all possible and I'm not saying it is possible. One less thought is the owner, from your question has to do additional work outside of the contract. As the fully been paid for and if not of course you can go against the owner because that was contracted separate apart from the work you did as a subcontractor. Your contract and was with the owner and all mechanic's lien law does not apply contract law does. Two years on oral agreement. Don't wait. Good luck to you.i have been practicing law in this speciality for over 30 years in the san francisco bay area and if you wish to consult with me you can contact me at 925-945-6000.

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Answered on 12/12/03, 11:38 am


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