Litigation Topics: Construction

One Bite At the Apple for Residential Contractors in Pre-Litigation ADR: If Builder's Arbitration Clause Fails, Homeowner Cannot Be Compelled to Utilize “Calderon” Process

In residential construction disputes, the legislature has mandated that the parties utilize an alternative dispute resolution (ADR) procedure that, hopefully, will cut down on litigation.  The procedure is known as the “Calderon” process, a reference to the legislator who sponsored the statute in question (Cal. Civil Code, §§ 895-945.5).

The Calderon pre-litigation process requires the affected homeowner to notify the contractor of defects and allow the contractor an opportunity to make repairs.

Homeowners Beware: Make Sure Your Contractor Is Licensed, Or Else His Employees Could Become YOUR Employees When They Get Injured!

Whenever you hire a contractor to work on your property, you should make sure he or she (or their firm) is duly licensed.  Doing work without a license can have major consequences -- for both sides.  For the contractor, it can mean an inability to collect (see Business & Professions Code section 7031). 

Unlicensed Contractors: Beware! Homeowners: Do Your Homework!

The court of appeal has ruled that a homeowner who employs an unlicensed contractor may not only successfully defend against the contractor’s collection action, but in addition, the homeowner has the right to obtain a full refund of all funds paid to the contractor who worked without the requisite license.