What are the legal remedies available when a contractor fails to pay?
In California, when a contractor fails to pay, there are a few legal remedies that can be pursued. The first is to file a lien against the property on which construction was performed. This lien can be enforced if the owner of the property refuses to pay the contractor for the work that was done. Another remedy is to file a small claims suit in California court. In this case, the contractor would present documentation and evidence of services that were performed and the amount owed for those services. The court would evaluate the evidence and issue a judgment in favor of the contractor. If the owner does not pay the judgment, the contractor can pursue the property in order to get the owed money. Finally, if the contractor has a contract that specifies payment, the contractor can use arbitration to try to receive payment. In arbitration, a third party reviews the evidence and renders a decision that is legally binding on both parties. If the contractor is still not paid, they can pursue legal action in a court of law. In any case, the contractor can also pursue civil damages if the owner refuses to pay what is owed.
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