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Effective January 1, 2015, Business and Professions Code Section 7071.6 will require all contractors have either a contractor’s license bond or cash deposit filed with the California State Licensing Board in the sum of $15,000.00.  The increase will only apply to homeowner, labor and fraud complaints.  The $7,500.00 remains in effect for all other claims.

Under Business and Professions Code §7108.5 (all public and private works projects) and Public Contract Code §7107 (public works projects not for a state agency) and Public Contract Code §10262 (state projects), a direct contractor must pay a subcontractor within 7 days of receipt of payment.  Failure to do so subjects the offending contractor to […]

Failure to pay a subcontractor, supplier or rental company can land the offendee in jail and lighten their wallet. Penal Code Section 484(b) provides that any person who diverts construction funds intended to pay for labor, services, materials or equipment risks fines and jail time! The Section “484b. Any person who receives money for the […]

In a case of interest decided today the Court of Appeal ruled that California’s usury law does not apply to a judgment creditor’s agreement to forbear collecting on a judgment.   The Court concluded that a judgment creditor may, subject to whatever contract defenses the debtor may have, enforce an agreement (otherwise usurious) to delay executing […]

In People v. Danny Victor Williams, 218 Cal. App. 4th 1038 (5th Dist., August 8, 2013) case, a fire protection contractor was convicted of violating Penal Code sections 386, 484(b), 487, subdivision (a), and Health and Safety Code, resulting in three felony convictions and numerous misdemeanor convictions for violating an assortment of State Fire Marshal […]

The July 1, 2012, amendments to the Mechanics’ Lien law continued the additional penalty for serving a false Stop Payment Notice. Not only does the offender suffer the loss of the right to participate in the distribution of any funds withheld but Section 8504 also includes the further penalty of forfeiting “… all right to […]

In the “What’s New” page on the CalTrans website, the most recent posting is from March 2010. Bonding Around Stop Notices Discontinued Effective March 2010, the Department will not honor any bonds placed by a prime contractor to prevent a stop notice. This is to enforce prompt payment to subcontractors. CalTrans procedures as to how […]

I’m pleased to report that I was interviewed today by Pete Asmus and Ivan Oberon on their “Investing Coast to Coast” radio show for Bloomberg Radio on real estate investment strategies and real estate law issues.  The show will be airing at 1:00 p.m. today on AM 1450. For more information, here’s a link to […]

I’m pleased to report that I was interviewed today by Pete Asmus and Ivan Oberon on their Investing Coast to Coast radio show for Bloomberg Radio on construction and real estate law issues and real estate investment strategies. For more information, here’s a link to the website: http://c2creia.com/blog/investcoast2coast/investing-coast-2-coast-with-pete-asmus-and-ivan-oberon-009-09142013/ I’m told my interview will be uploaded […]

Under the new Civil Code §8400, “A person that provides work authorized for a work of improvement, including, but  not limited to, the following persons, has a lien right under this chapter: (a) Direct contractor. (b) Subcontractor. (c) Material supplier. (d) Equipment lessor. (e) Laborer. (f) Design professional.” The a-f sections are restrictive and clearly […]