Legal Question in Construction Law in California

If you weren't licensed then you aren't entitled to any compensation, whether it was for materials, labor, equipment, profit or overhead. Any project over $500 requires a license. If the homeowner has already paid you something, they could demand it be paid back as part of their lawsuit. If you aren't licensed then, as noted above, you are not entitled to any money which also means you have no right to claim a lien. Furthermore there are other serious repercussions for contracting without a license when one is required.

The homeowner would have needed to follow certain procedures before filing a lawsuit to have the mechanic's lien removed. If you are not a licensed contractor, the mechanic's lien would not be enforceable, and the homeowner may be entitled to recover any money he already paid you. However, if you are a licensed contractor, your lien may be valid. Also, regardless of whether you are licensed, you may be able to assert a cross-complaint against the homeowner for your tools. More information will be needed to accurately assess your situation.

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