Q: A very good friend recommended a house painter. He gave us a fair bid, and was diligent. Unfortunately, parts of our roof broke during the work, and the repair is not cheap. He has demanded full payment. We did not check to see if he was licensed, and turns out he is not. Your suggestions?
T.W., Tustin
A: California Business and Professions Code Section 7028 makes it illegal to engage in contracting without a current and valid contractor’s license. The kind of work subject to Section 7028 includes repairs, improving and altering (which would include painting your house). It does not sound like the person who did the work would be able to successfully assert any of the limited defenses to his being unlicensed (one of which is known as “the small work exemption”, when the contract is for less than $500).
The plus side for you, having hired an unlicensed contractor, is that generally in California you can escape obligation to pay the work and materials because the unlicensed individual is prohibited from bringing legal action against you for payment.
A problem exists for you, however, in that you are not supposed to hire an unlicensed contractor. You are to have been careful enough to only employ a person who has a valid contractor’s license. That said, you are allowed to bring a legal action against the unlicensed contractor for reimbursement of whatever you paid to him because he was unlicensed. This is referred to as a “disgorgement” action.
Given the circumstances, your wisest choice is to consult with a lawyer and assess how properly and most prudently to deal with the situation.
Q: The good news – we got work done at the house for an excellent price, and good work was done. There were a variety of items that had to be dealt with. The bad news – the crew was unlicensed (no one has a contractor’s license). One of the workers managed to break his ankle on the job. What is our responsibility, if any?
J.M., Carson
A: Generally an owner who has hired an unlicensed contractor has no workers’ compensation coverage. This triggers a series of negatives: You may well be liable for the injured worker. In fact, there may be a presumption you were negligent, and the defenses of assumption of the risk and contributory negligence may not be available. In addition, you may even be on the hook for the attorney fees for the lawyer who brings an action against you.
While you can check to see if your homeowner’s insurance will provide some coverage, it would not be unusual if the policy excludes coverage for an unlicensed contractor. I am also reading that with some policies the use of an unlicensed contractor can result in your coverage being cancelled.
Thus, what seemed like a smart, economic decision could turn out to be otherwise. Once again, I suggest consultation with counsel. Too many niceties to try to address them all here. But, one thing I can say: More prudent to hire a licensed contractor.
California State Contractor’s License Board
The Board’s website online is at cslb.ca.gov. There, among other steps, you can look to see if a contractor is licensed, and you can file a complaint against a contractor.
Ron Sokol has been a practicing attorney for over 40 years, and has also served many times as a judge pro tem, mediator, and arbitrator. It is important to keep in mind that this column presents a summary of the law, and is not to be treated or considered legal advice, let alone a substitute for actual consultation with a qualified professional.
Source: Orange County Register
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