I am a general contractor who did remodeling for an homeowner who pulled the building permit as owner-builder. Now I am being sued for construction defects as the general contractor for the job. I was paid on a time and material basis and produced all the invoices to my lawyer along with proof of all monies received from homeowner. The lawsuit is for double the amount of monies received plus all money paid to sub contractors.
My lawyer advises me I do not have a chance in the California courts and I should offer the homeowner $10,000.00 to drop the lawsuit. To me this sounds like the homeowner is being allowed to blackmail me because I am a general contractor. He also states the $30,000.00 I have already paid to him can in no way be recovered and if I decide to take the case to trial it will be alot more than the $30,000.00 I have paid. Even if I win in trial I lose. How can this happen? My lawyer also said I cannot sue the homeowner to get any of my money back. Any hope?

You, as the General Contractor, are responsible, however, if one of the sub contractors caused the defect, I would think you would be able to sue them. You might have to settle the case between you and the homeowner first, then sue whichever sub caused the defect for the money you are out of. Ask your lawyer if this is possible. It should be, unless you are directly responsible for the defect. you don’t say what actually happened, so it is hard to answer specifically.

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