Legal Question in Construction Law in California

Thinking of suing builder.

Our builder on a new home abandoned the job half way through, he used unlicenced worker, didn't have workmans comp etc.

It cost me over 160K to fix everything.

We successfully made a case with his bond and got 7.5K. The CSLB have made an accusation against him and will be successful in that matter due to the large body of documented evidence we provided. However I don't know if they can impose financial penalties on our behalf.

Therefore I'm wondering if it's worth suing directly.

I know the builder personally has little in the way of financial assets. However his three sons are also on the licence and are part of his company, and they may have assets.

Ultimately though, I know the builder owns 2 acres of undeveloped land which I believe would be non exempt in bankruptcy.

Therefore if we have a strong and well documented case can I have opinions on going after the land in recompense?


Asked on 2/03/08, 1:38 pm

3 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Thinking of suing builder.

In the abstract, a lawsuit seems to make sense, but it could be a long, tough grind from filing to foreclosure of a judgment lien on the asset or assets.

I suggest interviewing one or more local lawyers who have some specialization or experience in construction law. Be sure to discuss fees and their view of the quality of your evidence of loss.

Since the ownership or possession of the undeveloped parcel is not itself in dispute, you can't record a lis pendens on it, and you probably can't get a prejudgment attachment, so check how title is held now, and then watch for any attempt to transfer title after the suit is filed; such a transfer likjely would be fraudulent and subject to being set aside.

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Answered on 2/04/08, 10:44 am
Terry A. Nelson Nelson & Lawless

Re: Thinking of suing builder.

You have nothing to lose but time and money. BTW, you don't 'go after land' until and unless you have a money judgment that you can use to levy on his assets, whatever they may be at the time, and whatever may be non-exempt once he files BK.

Without evidence that the sons are legally responsible partners liable for his debts, instead of shareholders in a corporation, you aren't going to obtain judgment against them. If you do, they also have BK options.

Bottom line: IF you think there will be reachable assets, sure invest the money to try. Feel free to contact me if that is the case and you are serious about trying, if the case is in SoCal. One good thing for you are the changes in BK rules that now favor payment of some portion of debt instead of simple discharge.

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Answered on 2/04/08, 1:37 pm
Ryan P. McClure The Law Offices of Ryan P. McClure

Re: Thinking of suing builder.

It might make sense to go after the builder. However, this is a real cost benefit analysis at this point. Feel free to contact my office. We handle construction and construction defect claims.

Good Luck!

LEGAL NOTICE: The information presented in this e-mail should not be

construed to be formal legal advice nor the formation of a lawyer/client

relationship.

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Answered on 2/12/08, 4:06 pm


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