Legal Question in Construction Law in California

Damage Property - portion covered by liability insurance, but the balance is b

The contractor did a job for a local hospital, which has been completed and payment received. During the job an employee damaged some property. Liability insurance covered a portion of this claim, thus leaving the balance up to the contractor.(Note-the agent that handled this matter didn't follow procedure and our office is currently looking into what can be done to remedy that situation.) The remaining balance is not an issue and I am willing to pay for that once I have resolved the issue with my insurance. Problem: Payment for other jobs, not related to the above referenced incident, are due and I have been notified that before a check is cut, the protion owed on the damaged property will be deducted.

is this legal?


Asked on 9/14/04, 3:19 pm

1 Answer from Attorneys
Benjamin Berger Berger-Harrison, A Professional Corporation

Re: Damage Property - portion covered by liability insurance, but the balance

It's probably not legal, but what can you do about it? Do you want to sue them for the money on the other jobs? They'll just cross-complain for the money you owe and you'll end up in the same place.

I guess you could lien the other jobs. The money you owe for the damage doesn't prevent you from recording a lien and it doesn't affect the amount of the lien either.

To discuss in detail, feel free to contact me. It's silly for me to spit out advice when I know so little about your situation. I hope this provides you with a little guidance and/or understanding.

Best of luck,

Ben

Read more
Answered on 9/14/04, 3:32 pm


Related Questions & Answers

More Construction Law questions and answers in California