Legal Question in Business Law in California

I'm a telecom contractor in California. I did some work at a customers office (Customer X) Cust X hired a company called NDC. I have worked directly for NDC before but on this job I was not hired directly by NDC, but through another contractor who works for NDC named Lamont, who I've worked with before on a NDC jobs. So Cust X pays NDC, NDC pays Lamont, Lamont pays me. I do have emails & texts from lamont with the scope of work and payment etc that serve as a 'contract'. My question is, if I have an issue with payment, (total job was $7000 and I have recieved $2000 from Lamont so far) besides legally going after Lamont, can I also sue/mechanics lein NDC and customer X. I would think the deep pockets rule would come in to play but I'm not sure. NDC says if I go after their customer they will counter sue me. Any info you can provide would be greatly appreciated. Parker


Asked on 4/02/14, 2:04 pm

3 Answers from Attorneys

Are you licensed by the Contractor's State License Board? If not, they can sue you to take back the $2,000 you got. Unlicensed contractors cannot sue to collect on any contract greater than $500 and can be sued to give back any money they have been paid on any contract over $500. If you are licensed, your only remedy is against Lamont unless you took all the steps when you did the job to perfect your lien rights, including giving preliminary 20-day notices to the customer and NDC.

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Answered on 4/03/14, 8:22 am
Nicholas Spirtos Law Offices of Nicholas B. Spirtos

The work you performed most likely required you to have a C7 contractors license. If you don't have the license, you could not sue to enforce any contract. It is possible that you could be considered an employee of Lamont, and might be able to get paid as an employee. A lot more info would be needed.

If you are licensed, then if you provided the proper preliminary notice to the required people and in the proper manner, you could assert record a mechanics lien.

As for NDC coming after you, they probably have a contractual obligation to defend the owner against any liens, so it would not be unusual for the prime contractor to sue one of the subs or at least take on the defense of the lien.

You are probably need to consult with an attorney in your area. Find one with construction law experience.

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Answered on 4/03/14, 8:36 am
Terry A. Nelson Nelson & Lawless

Whoever your 'employer' is owes you any wages or contractor compensation, regardless of where they send you to work. No one else owes you anything, regardless of your concept of 'deep pockets'. If you are actually an employee and owed unpaid wages, then you can file a claim with the local office of the Labor Commissioner. Otherwise, you can file a lawsuit for your 'contractor' compensation.

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Answered on 4/04/14, 1:17 am


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