Legal Question in Construction Law in California

Contractor damaged all maple engineered flooring during installation, breach of industry standards have been documented. Removal of floor and re-installment (by a reputable company) will be $9,500. What is surety bond responsibility now that all proof/professional assessments are made? Does it necessarily have to go to arbitration before surety bond pays? Are punitive damages awardable under California CSLB arbitration to prevent contractor from continued egregious behavior?


Asked on 7/23/11, 10:45 am

1 Answer from Attorneys

Gary Redenbacher Redenbacher & Brown, LLP

If the surety agrees that this was the fault of the contractor, it should pay for the damage. I would make a claim with the license bond before submitting this to arbitration. If they don't agree, then it will go to some form of dispute resolution (arbitration with the CSLB if you wish) and if you win at that forum, then the bond should pay.

What egregious behavior? Egregious means totally outrageous, not just bad workmanship. Punitive damages are virtually never awarded for a simple breach of contract. Get it out of your head that this is a lottery ticket. You're entitled to compensation for the actual damages you've suffered, nothing more.

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Answered on 7/23/11, 11:40 am


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