By David Kalb, President of Capitol Services, Inc.
There are always sad stories coming from economic crisis, but letting frustration with those conditions determine your behavior is also sad. We begin with a contractor who let things go too far in seeking ‘justice’ for money owed. You can lend a ‘hand’ in controlling a growing problem for licensed contractors, and we ‘engineer’ a solution for a lawyer with a corporate license issue…
It’s a situation almost everyone can understand. However, what happens next isn’t the usual solution. You’ve done work and not been paid. It happens. However, a recent Sacramento Bee crime report suggests taking the law into your own hands still doesn’t pay.
Claiming he was still owed money, a contractor waited until the man left for work and took matters into his own hands. Just after the man left his home the contractor showed up with a crane and ripped the newly installed and functioning HVAC unit right off the roof. Deputies showed up just about then, arrested the contractor and hauled him off to jail.
In ripping out the unit the home suffered significant roof damage leading to charges of vandalism and grand theft. Ultimately, the whole mess will wind up being decided by a judge. If you feel frustrated, take a deep breath, file the mechanic’s lien and let matters take their course. In the end a moment of satisfaction isn’t worth the price you may ultimately pay.
Another continuing problem for both licensed contractors and consumers is ‘the handyman’ issue. A friend called my attention to the recent insert in his daily paper promoting the services of ‘Your Trusted Handyman for over 20 Years”. Included in the ad was his Sacramento County Handyman License Number. Of course, real contractors know there is no such license classification. Unfortunately, many consumers will be fooled and all licensed contractors will feel the backlash when something goes wrong.
It’s questionable if an unlicensed ‘handyman’ is working up to code. Even worse when someone is injured on the ‘handyman’s’ job the homeowner is going to pay. If you are a licensed contractor help keep this problem from getting out of control, protect the consumers who may be your next customer and let the CSLB know so they can ‘educate’ those that may be unlicensed. In the long run it’s a ‘win-win’ for contractors and consumers.
Q: I’m an attorney who has a client who wants to transfer a Class “A” California contractor’s license from an existing corporation to a new corporation. The Responsible Managing Officer (RMO) is not going to be part of the new corporation, and I’ve therefore determined this is not possible unless my client obtains his own license, has another officer that holds a Class “A” license, or hires an employee that has a Class “A” license. My understanding is the license “belongs” to the corporation and cannot be moved. Are you were aware of any ways a transfer can be accomplished.
A: You are correct the license does belong to the corporation. There are very few circumstances where a corporation can transfer its number to another entity. The exceptions are detailed in B&P Code section 7075.1 and include for instance a parent corporation that has merged or created a subsidiary or the subsidiary has merged into the parent corporation. In the case you describe, the company will most likely be issued a new license number.
The new corporation will need to select an individual to become the RME or RMO. This can be someone who presently holds the "A" class or who can qualify to sit for the General Engineering exam.
Knowledge is power. Knowing where to go for the answers is half the battle. Get expert assistance immediately when you call 916-443-0657, email info@cutredtape.com, fax (916) 443-1908, or write me at Capitol Services, Inc., 1225 8th St. Ste. 580, Sacramento, CA 95814. Research past columns at www.cutredtape.com.