Legal Question in Construction Law in California

LaawGuru rules don't prohibit us from offering second opinions to people already represented by counsel, but it's really difficult in many cases, including this one, to figure out what advice and counsel would be useful in addition to (or instead of?) what you're already getting. I assume your attorney has looked into the size and liability of the contractor's bond. What about its insurance? A license suspension during a project is forgiven under certain circumstances, such as when it expires and is renewed promptly, but if it is suspended for cause and not corrected, that puts the contractor into the unlicensed category. If you are looking at losses in the $400K area, you need to have a serious discussion with your lawyer about the depth of the contractor's pockets (including bond and applicable insurance) because an uncollectible judgment may not be worth the investment in lawyer fees.

There are two issues you need to address, and Mr. Whipple is correct that we attorneys who provide answers here cannot address them for you through internet postings. The first is whether the contractor's corporate status can be pierced. His license status doesn't play into that issue at all. His cashflow problems probably do. If he was using the corporations assets and accounts as if they were his own personal assets and accounts (which is common with contractors and "cash flow problems" commonly indicate) then you can go after him personally as well as the corporation. If your attorney has not at least put in the pleadings a claim for "piercing the corporate veil" run, do not walk, to a new attorney. Assuming your attorney has filed the appropriate claims, then it is a question, as Mr. Whipple noted, of how deep the pockets are. It's not easy to find out how much money a defendant has before you get a judgment, but there are ways to get some idea. Your attorney should be able to do that for you before you waste any more time and money on the case.