Legal Question in Construction Law in California

Construction Contract & Deposit

May of 2007 I signed a contract with a company to have my septic hooked to the city, I paid them over $3000.00 for a deposit and two months later they told me that they couldn't do it for the price I had signed the contract for. I was in a position that in less than 5 days the permit costs were going up by over $4000.00 so I had to get the permits even though I did'nt know who would be doing the work. Now I have over $7000.00 dollars invested and still no one to do the work. My husband and I decieded that we could not pay this man any more that we had signed the contract for, the company then sent me a letter stating that the contract was VOID and they would send our money back. (Even though we think they should have to stand behind the original contract) That was over a month ago and I still have not received my deposit I have called and was told they would take care of it. I'm getting tired of the run around . What should I do next? Is they legal recourse?


Asked on 8/27/07, 4:51 pm

3 Answers from Attorneys
Benjamin Berger Berger-Harrison, A Professional Corporation

Re: Construction Contract & Deposit

Before I give you any advice, I'd love to see the contract.

Your instincs are correct, they should stand behind the original contract, absent unforseeable circumstances that may have arisen making it not possible to do the job for the originally-promised price.

Send me the contract, I won't charge you to review it or to let you know what I think.

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Answered on 8/27/07, 4:55 pm
Michael Meyer Law Ofc. Of Michael J. Meyer

Re: Construction Contract & Deposit

You do have recourse. There are a number of violations here. For example, it's against the law for a home improvement contractor to take more than $1,000 as a down payment. It's also against the law to increase the estimate beyond their original price. And of course, you've got a breach of contract, too. Finally, I'll bet the contract does not meet the legal requirements as set out in the Business and Professions code for this sort of work.

You can proceed in court or make a claim on his license bond, if he has one.

I have a few of these cases going on right now. Feel free to call me to chat about your options.

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Answered on 8/27/07, 5:03 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Construction Contract & Deposit

I'm not sure a septic-to-sewer connection comes under the Home Improvement Contract law, but a little research suggests that there is at least an argument that it would. Even so, that would not make it void, so I'm left wondering why the contractor thinks the contract is void and that he can ignore it.

You seem to be within the money jurisdictional limits of Small Claims Court, so maybe you should consider filing a suit there, and see if that prompts response.

Buy and study a paperback book on California Small Claims procedure.

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Answered on 8/27/07, 11:43 pm


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