California sub-contractor attempting to collect debts before statue of limitations is up...

[Cali_Angel]

I work for a small HVAC company in Long Beach, CA, which is a sole proprietorship business. Our company has had a good business relationship with a construction contractor throughout the past 5 years and business was GREAT. That is until the contractor just stopped paying invoices. We attempted every way possible to collect payments on several invoices, which date back to August of 2018. Recently I found out that the contractor is no longer located at the address his business was located for 10 years, no forwarding address, and he also moved out of his home. His Contractors License has been revoked, several complaints have been made against his license, of which he did not take any action to resolve the issues involving his contractor license. Getting to the point....I DID find out where he is currently located, which is in Colorado, where he has obtained a contractor license and started a new construction company. So how do I go about serving someone who clearly moved out of state to avoid the problems and debts and consequences from his failed business in California?

 

[quincy]

I work for a small HVAC company in Long Beach, CA, which is a sole proprietorship business. Our company has had a good business relationship with a construction contractor throughout the past 5 years and business was GREAT. That is until the contractor just stopped paying invoices. We attempted every way possible to collect payments on several invoices, which date back to August of 2018. Recently I found out that the contractor is no longer located at the address his business was located for 10 years, no forwarding address, and he also moved out of his home. His Contractors License has been revoked, several complaints have been made against his license, of which he did not take any action to resolve the issues involving his contractor license. Getting to the point....I DID find out where he is currently located, which is in Colorado, where he has obtained a contractor license and started a new construction company. So how do I go about serving someone who clearly moved out of state to avoid the problems and debts and consequences from his failed business in California?

Do you know if the contractor filed for bankruptcy in California?

How long ago was the contractor’s move to Colorado?

You can sue the contractor in Colorado for any money he still owes you. There is a six year statute of limitations in Colorado for filing suit, from date of default. What is the amount of money owing?

I question why you say you had a “good business relationship” with the contractor if you have unpaid invoices dating back to 2018. I am curious why you didn’t take him to court then.

edit to add link to small claims instructions for Colorado:
https://www.courts.state.co.us/Self_Help/smallclaims/

 

[zddoodah]

We attempted every way possible to collect payments on several invoices, which date back to August of 2018.

Does that include recording mechanic's liens and suing to foreclose them and making a claim against the contractor's license bond?

how do I go about serving someone who . . . moved out of state

California Code of Civil Procedure section 415.40 allows service on a non-resident of California by certified mail (as well as all of the more typical methods of service).

One thing to consider: A judgment from a California court isn't going to do you much good against an individual who no longer lives or has assets in California (I'm assuming from the way you wrote your post that the contractor was an individual/sole proprietorship and not a corporation or LLC). In order to enforce your California judgment, you'd have to domesticate it through the Colorado courts, so it might be better simply to sue in Colorado in the first place.

 

[quincy]

It is generally not the suing that is a problem. Filing a lawsuit is relatively easy and straightforward. It will be collecting on any judgment awarded in the lawsuit that can be the biggest problem.

 

[Cali_Angel]

Do you know if the contractor filed for bankruptcy in California?

How long ago was the contractor’s move to Colorado?

You can sue the contractor in Colorado for any money he still owes you. There is a six year statute of limitations in Colorado for filing suit, from date of default. What is the amount of money owing?

I question why you say you had a “good business relationship” with the contractor if you have unpaid invoices dating back to 2018. I am curious why you didn’t take him to court then.

edit to add link to small claims instructions for Colorado:
https://www.courts.state.co.us/Self_Help/smallclaims/
[/QUOTE]

First of all thank you for responding to my question.
In answer to your questions:

No I am not sure if he filed bankruptcy in CA or in any other state

After doing some digging, I found that he moved to CO somewhere around September of 2019, although records show that he did not moved out of his last address (the address on file with my company during our business relationship) until April of 2020.

In regards to our "good relationship", its a bit complicated...this contractor hired us on a handful of his ongoing projects...of which he paid partial payments on a few invoices, and paid in full on some other invoices. There are 6 Invoices of which we are trying to collect on...all 6 invoices are from one particular project that he and his company was actually thrown off of (fired) and now the developers from that project have hired my company directly for any HVAC related work to be done. Soon after he was removed from working on this development, there was a complaint on his license and he was involved in a law suit against him individually and against his business.

During this time, there were about 5 Invoices for jobs on different projects that he hired us to do and he paid those in full...dating from January 2020 thru April 2020.
To put it clearly, he owes my company just under 10K, on 6 invoices of which were from one project (one job address). Partial payments on these 6 invoices were made as recently as April of 2020.
All communications stopped in April of 2020.
In Santa Barbara, CA he has a brother who is licensed under the same business name, different license, but owned and operated under his own name. BUT, the contractor we are trying to collect from IS listed as an employee at the brother's company.

Believe me, this is ALL very confusing to me...I hope I explained clearly enough.

Thank you in advance for your time,

Cali_Angel

 

[quincy]

First of all thank you for responding to my question.
In answer to your questions:

No I am not sure if he filed bankruptcy in CA or in any other state

After doing some digging, I found that he moved to CO somewhere around September of 2019, although records show that he did not moved out of his last address (the address on file with my company during our business relationship) until April of 2020.

In regards to our "good relationship", its a bit complicated...this contractor hired us on a handful of his ongoing projects...of which he paid partial payments on a few invoices, and paid in full on some other invoices. There are 6 Invoices of which we are trying to collect on...all 6 invoices are from one particular project that he and his company was actually thrown off of (fired) and now the developers from that project have hired my company directly for any HVAC related work to be done. Soon after he was removed from working on this development, there was a complaint on his license and he was involved in a law suit against him individually and against his business.

During this time, there were about 5 Invoices for jobs on different projects that he hired us to do and he paid those in full...dating from January 2020 thru April 2020.
To put it clearly, he owes my company just under 10K, on 6 invoices of which were from one project (one job address). Partial payments on these 6 invoices were made as recently as April of 2020.
All communications stopped in April of 2020.
In Santa Barbara, CA he has a brother who is licensed under the same business name, different license, but owned and operated under his own name. BUT, the contractor we are trying to collect from IS listed as an employee at the brother's company.

Believe me, this is ALL very confusing to me...I hope I explained clearly enough.

Thank you in advance for your time,

Cali_Angel

If the contractor you want to sue is now listed as an employee of the California business, you can sue him in California. You will not be able to sue in a small claims court if you are looking to sue for around $10,000, though.