Legal Question in Business Law in California

Subcontractor Failure

Can a subcontractor be liable for the entire fees due if they fail to show up? Can we sue him/her for more than the contracual fees if we believe that subsantial and longterm damage has been suffered?


Asked on 3/11/02, 4:29 pm

3 Answers from Attorneys

Wayne Smith Wayne V. R. Smith

Re: Subcontractor Failure

This question is difficult to answer without knowing the nature of the subcontract and services involved. You suggest a subcontractor has breached its agreement by failing to do the work. If you have to hire another subcontractor, and it costs you more, then you should be able to recover that difference. But to get consequential damages is a hurdle in California. There may be some delay damages if this is a construction contract, but those are somewhat complicated and expensive to recover. And such damages are based in part on the contract language.

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Answered on 3/11/02, 5:03 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Subcontractor Failure

The answer is 'perhaps.' What you seem to be asking about is called 'consequential damages' and they are awarded based upon foreseeability of the particular harm that occurred at the time the contract was negotiated and executed.

Courts generally try to fashion awards in contract cases to put the parties in the same position they would have been in if the contract had been faithfully performed. However, they sometimes fall back to merely restitutionary awards (placing the parties in the status quo prior to the contract) if there have been extenuating factors -- such as blame for the breach not entirely clear, plaintiff could have done more to help himself, actual damages hard to compute or speculative, etc. etc.

I note from your Zip code that you are in Petaluma. You are welcome to a free consultation and review of your prospects in court or in mediation. I'll be traveling on business 3/13 - 3/24 but feel free to contact me before or after.

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Answered on 3/11/02, 5:16 pm
Roy Hoffman Law Offices of Roy A. Hoffman

Re: Subcontractor Failure

Without more information, it is virtually impossible to respond to your question. What "fees" are you referring to? Who failed to show up, and why were they supposed to show up? Who do you want to sue for more than "the contract fees?" What do you mean by the term "contract fees?" What "substantial and long-term damage" has been suffered?

Assuming you are talking about a subcontractor who has breached a construction contract (as opposed to doing something that causes personal injuries to someone), it would depend mostly upon the language of the contract, and who the contract was with (i.e., with a general contractor, or with the subcontractor hired by a general).

You may want to contact an attorney in your area to discuss your situation in more detail.

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Answered on 3/11/02, 5:17 pm


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