Success Stories/Litigation/Civil & Business Litigation/The Contractor Took $380,000, Walked Off Halfway, and Had No License: Most of the Money Came Back
Unlicensed contractor abandoned the job

About $340,000 refunded at mediation

The Contractor Took $380,000, Walked Off Halfway, and Had No License

Background

Ms. Z and her husband bought an older house in Irvine. In early 2025 they hired a crew recommended by a friend, signed a renovation contract of about $450,000, and paid $380,000 in progress payments. By summer the kitchen walls were down and half the plumbing replaced, and then the workers stopped coming. The owner called to say material costs had gone up and he needed another $100,000 to continue. The house was unlivable, and the family of four had to keep renting.

Strategy

Our first step was the state contractor license lookup. The license number on the contract belonged to a different company; the owner himself had no license. In California, when an unlicensed contractor takes on this kind of work, the homeowner can demand back what was paid, regardless of how much work was done. That is a much stronger position than arguing item by item over how much was finished.

In October 2025 we filed suit and reported him to the state contractor licensing agency. He hired an attorney and answered that most of the work was done and should be paid for. We produced the license records and the contract he signed under someone else's license number, and found two rental properties in his name. Trial was set more than a year out, so the parties agreed to mediate first; the earliest opening was this September.

Case Timeline

Date Milestone
February 2025 Renovation contract signed; progress payments begin
July 2025 Crew stopped work and demanded $100,000 more
September 2025 Retained Lingtu Law; found the owner had no license
October 2025 Filed suit and reported him to the state contractor licensing agency
November 2025 Contractor answered
Mid-September 2026 Installment refund agreed at mediation; first $150,000 received

Outcome

At mediation in mid-September 2026, the contractor agreed to refund about $340,000 in installments, secured by one of his rental properties, and the first $150,000 arrived that month. The licensing agency also cited him. Ms. Z used the money to hire a licensed company and finish the house.

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