Legal Question in Construction Law in California

Verbal contract reneged by h/o, landlord, I've got $10,000 in labor but unlicens

I've performed three months of quality work on a complete remodel project for a homeowner/landlord. With the understanding that myself and the owners son were to rent the home jointly, and for a time, in lieu of payment to me for labor, that a reduced rental-rate would be applied. I am an experienced Journeyman Plumber, and work for a reputable, licensed contractor, however, I am unlicensed. I put six and seven hour days in after my eight hour day for almost three months, weekends I worked solid at the project. The son/roomate assured me that if I were to terminate my current rental agreement that moving onsite prior to completion would expedite the project. I did so and then a disagreement rendered me homeless, and subsequent theft of my equipment and personal property ensued. the police have not been called as yet, this was in february, and I've not contacted them since. They Know they owe me but refuse to be civil enough to reach an agreement. Is my Labor a total loss? I have reasonably-reconstructed time table and invoice for my time but they contest that the work was not performed according to their expectations, I have been sleeping in my truck, not having $ or means to get another place, what are my options? Help?!


Asked on 5/20/04, 9:54 pm

2 Answers from Attorneys

Gary Redenbacher Redenbacher & Brown, LLP

Re: Verbal contract reneged by h/o, landlord, I've got $10,000 in labor but unli

Yours is a difficult situation. Unlicensed contractors are not allowed to recover under most situations. Moreover, the law became even more harsh about a year ago when the legislature passed another law that says that any money already paid to an unlicensed contractor can be recouped by the owner.

The one exception you can try to invoke is that you were actually an employee rather than a contractor. There are numerous factors that a court looks at to determine whether you are an employee or contractor. The key factors to be considered an employee are: 1) You received wages as your sole compensation, 2) you do not customarily engage in an independently established business, and 3) you did not have the right to control or discretion as to the manner of performance so as to determine the final results of the work performed.

It would be worth your while to make this argument at small claims court. The jurisdiction is limited to $5000, but the judges there are more apt to try to be fair rather than go according to the letter of the law. If you stress that you were an employee working for an hourly wage and show that the work you did was flawless, you may well encounter a sympathetic judge. It only costs $30 to $40 to file (last time I looked) and it's an extremely simple one page form to fill out. For further help, get Nolo Press' Everybody's Guide to Small Claims Court. It's an outstanding guide in layman's language on how to go to small claims court. Go to www.nolo.com. Best of luck.

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Answered on 5/21/04, 1:17 am
Michael Olden Law Offices of Michael A. Olden

Re: Verbal contract reneged by h/o, landlord, I've got $10,000 in labor but unli

Where do I start. You have numbers of rights even though you are unlicensed. Your unlicensed states does her chew considerably but this was a personal transaction not a commercial transaction. I can rub salt will wound and you should know better than to start a job without having a written agreement dealing specifically with what the rights duties and liabilities of each party are. Shame on you. Now that said you have a right to minimally the fair market value of your services. At least understand that at this point in time I cannot imagine you went to live there with these people's son. But there is a value to what you did, a breach of contract, oral, to what they did and areas of hopefully settlement. If not settlement categorical art to protect or you know what. If you know what do that can give your ranks up, but that is your business decision and no one else's. My advice, see an attorney who understands business law/real property law. You see contracts must be in writing applicable to real property and that will be a substantial defense. I see numbers of ways around that defense.I have been practicing law in this legal area for over 30 years and understand your problem well. I practice in the S.F. Bay Area and if you wish to contact me call at 925-945-6000.

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Answered on 5/21/04, 9:54 am


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