Small Claims Court for Contractor Disputes in California

You paid a contractor a deposit and they disappeared. Or they finished the job but did it so badly that you paid someone else to redo it. Or they abandoned the project halfway through after taking most of the money. Contractor disputes are among the most common reasons Californians file small claims cases — and they are winnable if you understand what to prove and what tools you have.

How Much Can You Recover?

As an individual suing a contractor, you can recover up to $12,500 in California small claims court (CCP § 116.221). You can claim:

• The amount you paid that was not delivered (a deposit on work never begun)
• The cost to have someone else fix or complete the work
• The difference between what was promised and what was delivered
• Materials you paid for that were not used or were kept by the contractor

You cannot recover punitive damages or emotional distress damages in small claims — only actual documented financial losses.

The CSLB Bond Option: A Different Path

Licensed contractors in California are required to carry a surety bond through the Contractors State License Board (CSLB). As of recent years, the required bond amount is $25,000. This bond exists specifically to compensate consumers for contractor misconduct.

Here is how this affects your strategy:

Option A — Sue the contractor directly in small claims court. This is the straightforward approach. Sue the contractor (using their correct legal name or business entity) and recover up to your $12,500 individual limit.

Option B — Sue the bonding company. If the contractor is bonded, you can file a claim against the surety bond company. The surety pays claims from the bond, up to the bond amount, and then seeks reimbursement from the contractor. Suing the surety in small claims has its own requirements and limit considerations — as an entity or individual suing a guarantor, different caps may apply (CCP § 116.220(c)).

Option C — Both simultaneously. You can pursue both the contractor and the bond claim concurrently, though you cannot collect more than your actual damages.

How to check bond status: Go to cslb.ca.gov and look up your contractor's license number. The license detail page shows their bond amount, bonding company, and current status. If the bond is lapsed, the contractor was operating in violation of California law — which is an additional argument in your favor.

Filing a CSLB Complaint (Use Alongside, Not Instead Of)

Filing a complaint with the Contractors State License Board (cslb.ca.gov) is separate from a lawsuit but complements it. The CSLB can: - Investigate the contractor - Suspend or revoke their license - Require the contractor to resolve the dispute as a condition of keeping their license

The CSLB cannot award you money directly — that requires a lawsuit or arbitration. But a pending CSLB complaint sometimes motivates contractors to settle quickly to protect their license. File the CSLB complaint and the small claims case at the same time.

Who to Sue: Getting the Defendant Right

Contractor businesses take various legal forms, and naming the wrong entity results in an uncollectable judgment.

Sole proprietorship: "Maria Lopez dba Lopez Tile & Flooring" — check the Secretary of State's database at bizfileonline.sos.ca.gov for the exact trade name registration.

Corporation or LLC: Use the exact registered legal name from the SOS database. Serve the Agent for Service of Process.

Unlicensed contractor: In California, contractors must be licensed for work exceeding $500 in combined labor and materials (Business and Professions Code § 7028). An unlicensed contractor cannot legally enforce any contract for that work in California courts — meaning if they sue you for the balance, they lose. More importantly, contracting without a license is a crime under California law, which strengthens your civil case significantly.

To verify license status: cslb.ca.gov → License Check. Enter the contractor's name or license number.

What You Need to Prove

A contractor dispute case requires proving:

1. A contract existed and what it promised. Even verbal contracts are enforceable in small claims court. A written contract is far stronger evidence. Key terms to document: the scope of work, agreed price, payment schedule, and completion date.

2. You paid money. Bank records, canceled checks, Zelle/Venmo receipts, or credit card statements showing what you paid and when.

3. The contractor failed to perform. This is where photos and third-party assessments matter: - Photos of incomplete or substandard work - A written assessment from another licensed contractor describing what was done wrong and what it costs to fix - Text messages or emails showing the contractor acknowledged the problem or stopped responding - A written timeline of work phases, what was completed, and when the contractor stopped

4. Your damages. The specific dollar amount you lost, calculated by: - Invoices paid but work not done - Quotes or invoices from a replacement contractor - Materials purchased but not installed or removed by the contractor

Evidence Checklist for Contractor Cases

Bring three copies of each to the hearing: - The original contract or written estimate (signed if possible) - All payment records (checks, wire transfer records, payment app screenshots) - Texts and emails with the contractor (especially messages showing requests for completion or responses to problems) - A written estimate from a different licensed contractor documenting what needs to be corrected and the cost - Photographs of the work at various stages — especially showing incomplete or defective work - The CSLB license lookup result (screenshot or printout showing license status) - A one-page timeline: contract date, payment dates, work dates, problems identified, communications sent

Statute of Limitations

Time your filing correctly: - Written contract disputes: 4 years from the breach (CCP § 337) - Oral contract disputes: 2 years from the breach (CCP § 339)

The "breach" is typically when you discovered the contractor wasn't going to complete the work or when the defective work became apparent. Don't wait — evidence disappears, contractors move, and statutes of limitations are enforced strictly.

What Happens If You Win

A judgment against a licensed contractor can be enforced through standard collection mechanisms: bank levy (Writ of Execution), wage garnishment, or real estate lien. If the contractor is bonded, you may also be able to submit the judgment directly to the surety company as a bond claim.

A judgment against an unlicensed contractor is enforceable but collecting can be harder if the contractor has no attachable assets or has moved. This is another reason to check license status before filing — it also helps you assess the likelihood of collection.

Don't Leave Money on the Table

Contractor disputes often involve amounts in the thousands of dollars — enough to be genuinely painful but also enough to be worth pursuing through small claims. The process takes 2-4 months and costs $30-$75 in filing fees. A step-by-step guide that covers demand letters, correct defendant identification, and evidence organization makes the difference between winning and walking away from money you're legitimately owed.

Get the California Small Claims Court Filing Guide