Re: Contractor stole money
Your first order of business is to determine who still remains to be paid. Contact all subcontractors and material suppliers to get an accounting – they will not able to enforce against you unless they followed the procedures for creating and perfecting a mechanic’s lien (e.g. 20 preliminary notice, timely filing of lien, etc.).
Next order of business is to demand an accounting from the contractor in writing. To ensure delivery, I recommend that you fax and mail via certified letter return receipt requested.
In the meantime, you can file a complaint with Contractors State License Board. They will likely begin an investigation that includes an inquiry to the contractor. That may be enough to get him to respond. The CSLB has the authority to investigate and impose civil penalties, in addition to possible suspension of license. The CSLB also have mediation and arbitration programs.
You may also make a claim against contractor’s license bond. The process does not always guarantee payment – typically some form of legal action against the contractor and bond is required before you get any payment.
Finally, there is legal action. Once a lawsuit is filed, the CSLB usually closes its file once a civil lawsuit is filed. Therefore, if you the time, I recommend letting the CSLB complaint process run its course – potential suspension of license and civil penalties may be enough to get the contractor’s attention.
For further assistance on this matter, please feel free to contact our office to arrange for a consultation.
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