Legal Question in Construction Law in California

CSLB Arbitration Program

We filed a complaint against a

contractor that did a lot of damages

in our landscaping/pool/spa project.

We paid him over $250,000. Our

Complaint was filed with the

California State License Board. Our

case was very properly handle by the

CSLB. They did their own

investigation reports. They are

offering us for free their own

Arbitration program that covers

damages up to $50,000. They are

explaining to us that we can always

go after the contractor for the

difference in the money. Our

damages are approximately

$125,000.

My question is:

How good is the Arbitration Program

with CSLB?

Should we have an attorney to be

there with us? Or should we just

hire an attorney and take the

contractor to court and use as part of

our evidences the CSLB's findings.


Asked on 1/30/09, 5:34 pm

2 Answers from Attorneys
George Moschopoulos The Law Office of George Moschopoulos

Re: CSLB Arbitration Program

Assume for a second that the arbitration program with the CSLB is the best around. Your 'home run' or the best you could do is $50K. The contractor will likely want a full release in exchange for whatever settlement you arrive at. Are you comfortable walking away from the other $75K?

There are no guarantees, ESPECIALLY, in litigation. However, I would recommend that you proceed with a judicial process in lieu of the administrative one to ensure that you have not limited your potential recovery.

If we can be of help, let us know.

Best of Luck!

www.SoCalConstructionLaw.com

George M.

P. 714.904.1669

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Answered on 1/30/09, 5:44 pm
Terry A. Nelson Nelson & Lawless

Re: CSLB Arbitration Program

IF the contractor is still in existence by then, and IF he shows at all to the hearing, he will certainly have an attorney with him. You should do the same if you want this handled effectively.

You're probably getting some inaccurate advice, or misunderstanding what's been given. 1. You won't be able to use any arbitration outcome in court as evidence. 2. Court rules require you make ALL your claims in one legal action. If you've already brought one in arbitration you'll likely be prohibited from seeking more than that amount in court. 3. No defendant is going to pay you an arbitration award without a full release, preventing your from suing for the rest.

The only way you're going to get any meaningful and informed opinion/legal advice is to sit down with experienced counsel, who will be able to provide it to you only after reviewing all the contracts, documents, facts, legal issues, etc., with you. You can not get 'legal advice' here; that would be against the legal ethics rules to provide it to non-clients. At best, you are getting only 'helpful hints', based on insufficient scraps of information.

Feel free to contact me if serious about handling this right.

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Answered on 1/30/09, 6:28 pm


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