Legal Question in Constitutional Law in California

I've completed a subcontract for a GC on a public works project and haven't been paid, the only document I had them sign was the proposal for the work including description of the work and price. The fist invoice was dated 9-23-15 and the final invoice 11-30-15, I failed to file a lien notice and now the county has already paid the GC in full. My suppliers are charging me 1.5% interest each month until I can pay them for material and equipment, can I pass this monthly interest charge to the GC and will I have to sue the GC in court to collect the money owed?

Thank you,

Tom


Asked on 1/18/16, 2:00 pm

1 Answer from Attorneys

Whether you are going to have to sue the GC or not depends on the GC. If they won't pay you, then yes, you have no other way to get your money since you failed to take the steps necessary to place a public works stop notice on the funds. As for the interest on the unpaid sums, you are probably entitled to 10% annual interest on the amount owed. Whether you can collect the difference between the 10% statutory rate and the 18% you are being charged would depend on specific facts of the case and your dealings with the GC. The good news is that if the GC has no good faith reason to withhold payment, they will have to pay your attorneys fees on top of the amount due and interest.

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Answered on 1/18/16, 2:37 pm


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