Legal Question in Construction Law in California

Incidental Damages

General Contractor hires subcontractor to install wood floors. Subcontractor installs improperly. By agreement of all parties, Subcontractor replaces entire job at a huge loss. Job is satisfactory. After the satisfactory replacement, homeowner refuses to pay General Contractor and demands compensation of several thousand dollars for lost time at work, cleaning bills, etc. General wants sub to pay. Sub claims that such costs are not allowed under the law and to the extent that they are, they should have been presented to sub first, so sub could have a chance to mitigate his damages. Is Subcontractor liable for all these incidental damages?


Asked on 3/23/06, 7:22 pm

1 Answer from Attorneys

JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

Re: Incidental Damages

Generally speaking, such costs are not recoverable, unless they were forseeable at the time of contracting and/or there is an agreement that they are reimburseable. Based upon the facts you presented, it is unlikely that the GC could force the Sub to pay for the client's unreasonable demands.

At this point, you will likely hold firm and refuse to pay the demand. If the GC refuses to pay you, you will record a lien against the home and timely file suit to foreclose if necessary. You could also simply sue the GC, but a lien would likely be more efficient in extracting payment.

If the client refuses to pay the GC, then the GC's remedy is to file a lien against the home and/or proceed with suit.

For advice to your specific situation, contact an attorney familiar with construction and/or real estate litigation.

Good luck.

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Answered on 3/23/06, 9:31 pm


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