Legal Question in Construction Law in California
My understanding is that a carpenter with a suspended license with a contract but not signed can be sued by a homeowner for the money they paid for a job not completed. The job I am referring to was over $500 for kitchen cabinets with a down payment paid in cash. The job being 80% completed the homeowner now wants to change the order by tearing out a wall, removing some of the new cabinets built and have additional cabinets built in another area of the house. The carpenter is willing to work with the homeowner to complete the work to the homeowners satisfaction to avoid going to court but the homeowner is being unreasonable and is asking for additional cabinets being built and refusing to pay. At this point the carpenter is willing to give the homeowner their money back however the homeowner wants to sue and also include in that suit a daily rate (ex. $116.66) for delays cause by unfinished work. Is that possible or can they only sue for the money they paid to the carpenter? What about attorney fees? And yes lesson learned. Thank you.
2 Answers from Attorneys
An unlicensed contractor can not sue in court to enforce the terms of the contract but that does not mean the converse that the homeowner can sue for the face value of the contract.
The homeowner can sue for any damages, losses and expenses incurred due to breach of the contract. When the contractor is unlicensed they can also sue for all of their money back. I cannot imagine how a homeowner can prove delay damages of $116.66 a day, however, unless the contract had that amount in a liquidated damages for delay clause. The homeowner will have to prove actual delay damages, and that they could not have been avoided by taking mitigating actions.
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