Legal Question in Construction Law in California

Re: Verbal contract and Barter

As Mr. Whipple said, some of the statutes of limitations may have already run. My experience with unlicensed contractors is that you won't be able to collect from them anyway because most of them live from paycheck to paycheck. There is, however, a slight possibility of getting something back from this guy. Contact the Contractors State License Board and tell them about this unlicensed guy. They may be willing to do a sting. It's also possible to do a police report on the unlicensed activity. It is a criminal offense to contract without a license. Don't expect the police to be too enthusiastic, but if you have a strong consumer protection division in your District Attorney's office, they may be willing to take up this fight upon receiving a report from the police.

Re: Verbal contract and Barter

Failing to sue within two years was also a mistake; that's the statute of limitations for suit for breach of an oral contract. Code of Civil Procedure, section 339.

There is a statute (Business and Professions Code 7031(b)) authorizing anyone who has paid an unlicensed contractor to bring suit to recover all the money paid, but I think the statute of limitations for such an action is only one year (see Code of Civil Procedure section 340).

If the amount you would like to recover isn't more than $7,500, you might try bringing suit in small claims court. The statute of limitations is an affirmative defense, and if he fails to answer, or fails to plead the defense provided by the statute of limitations, you may get a judgment anyway.

I suggest getting a paperback self-help law book on "how to win your case in small claims court" or the like.

Bringing suit in superior court is, I think, more likely to result in a defense being raised, and maybe isn't worth the added cost. Depends upon the size of your potential claim.

Another possibility I should mention is to get a free initial consultation with a local lawyer and ask him or her to look for any way to get around a likely limitations-based defense. In some cases, such circumstances can arise, such as tolling of the statute, creation of an "account stated" or "book account," and the like. There may also be sufficient written memoranda to allege a written agreement (four year limitations period).