What are my legal rights if I opened a business 3 1/2 months late due to the fact that my general contractor failed to pay a subcontractor?

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What are my legal rights if I opened a business 3 1/2 months late due to the fact that my general contractor failed to pay a subcontractor?

The GC hired but failed to pay a plumber. The plumber cannot find the GC who has a new address but has sued me in small claims court for their uncollected fees. Who is responsible for this debt – me or the subcontractor? Plus, my contract with the GC says that I am not allowed to deal directly with any subcontractor.

Asked on April 2, 2014 under Business Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

If you have paid what is owed the general contractor and you had no privity of contract with the sub-contractor plus there is no valid mechanic's lien on your property then you are not obligated to the sub-contractor for whatr is claimed due, the general contractor is obligated for the amount.


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