Quote:
Originally Posted by skyhook
The laws a quite clear and the CSLB stands behind us 100%.
Case in point, if a HO decides to pursue a security bond, he must first obtain a court victory. Until then, the CSLB is not even remotely interested in the case. 
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Anyone can put a claim against a contractors license bond... but the bonding company does not have to pay it automatically... unless a judgement exists that the judgement creditor cannot collect directly from the contractor. The bonding company is obligated to pay the judgment if a demand is placed.. then they go after the contractor (judgment debtor) for re-imbursement. But they WILL investigate any claim made against a license bond and while they will not pay most claims, they will pay some claims outright (such as claims made by equipment rental companies over unpaid rentals when a lien is placed by the rental company).
I recently got a phone call from my old bonding company about a complaint filed against my bond. The job was completed 13 years ago! The license board has jurisdiction for 4 years on patent defects (most complaints fall under this category) and 10 years on latent defects. CSLB had no interest but the bonding company did. They asked me what I wanted to do about the complaint, I said No one had even contacted me about any complaint and so I did not know what it was but even if I did, it has been WAY too long to be covered under any concievable warranty. They agreed and closed the file.
35 years as a contractor has taught me a few things about the CSLB, they are not on the contractors side (CSLB is under the Department of Consumer Affairs after all) and you cannot trust ANY advice or answers you get from them regarding contractors laws and proceedures because you can call three times with the same question and get three different answers... all of which are wrong!