Legal Question in Construction Law in California

Re: Verbal Contract

You must file a lien on the property immediately to assure payment. There are strict time limits for filing. Certainly you have a breach or contract action as well as a quasi-contract action called quantum meriut. Please call me directly at (619) 22-3504.

Re: Verbal Contract

Your performance negates the need for a formal contract. To allow the other party to be unjustly enriched by your work is not allowed. You will no doubt have to sue to get your money. You can also consider a mechanics lien. I practice in California and Indiana.

Re: Verbal Contract

You have a right to recover from the owner on at least two theories, assuming you are properly licensed to do the type of work you did.

First, an oral (the preferred term over 'verbal') contract is enforceable just the same as a written contract, with limited exceptions the most important of which is transfer of real estate. Of course, you will have to convince a judge or jury of the facts, which is more difficult but not impossible where there is little or no written evidence.

The second theory is restitution for the benefit conferred on the owner, or 'unjust enrichment.' Even if there were no oral contract, the owner would not be allowed to retain the benefits you have conferred on him without making you whole.

It is preferable (generally) to sue and prevail on the oral contract because you will be allowed the profit margin you preumably built in to your bid price......unjust enrichment would normally only reimburse you for your costs, less profit.

Due to the amount of money involved and the apparent 'sharp practices' of the owner, you should see a lawyer at once to discuss stop-loss measures including filing liens and collecting and preserving evidence of the contract, etc.

Re: Verbal Contract

A verbal contract is usually just as binding as a written contract. The problem comes in proving the facts and what the contract consisted of.

In California, there can be some problems if it is an oral home improvement contract. These are all supposed to be in writing, but the courts usually insist that a homeowner pay you when he has received benefit from your work. There are, however, a few cases that say that a homeowner can cancel a home improvement contract that doesn't adhere to the written requirements. What this probably means is that if the contract is canceled by the court, then you wouldn't be allowed to get your profit from the job, but you'd be allowed to recover the fair value of the work you performed.