Posted by jojo_MN on 1/17/07 7:46pm
Msg #171430
CA question regarding sub-contractor laws
Sorry, don't have time to do a search--I'm in the middle of a "discussion" with a SS that doesn't want to pay my fee for a loan that was cancelled.
Does the state of California have the same law such as Florida that who-ever hires a notary has to pay for the service provided regardless if they are paid? I did a closing and the borrower cancelled, so the SS is trying to get out of paying (same old story). TIA
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Reply by PAW on 1/18/07 9:56am
Msg #171492
Re: What FL law?
What I've been told is the subcontractor laws only apply to the construction industry. Does your attorney have a statute or case that can be referenced? The following is an excerpt from Thomas H. Squeri of Coudert Brothers LLP:
"Conditional payment clauses have become a popular tool used by prime contractors to shift to subcontractors the risk of the owner's insolvency or non-payment. These clauses go beyond language governing the mere timing of the payment, and provide that receipt of payment from the owner is a "condition precedent" to the prime contractor's obligation to pay subcontractors. In other words, conditional payment clauses attempt to provide that if the owner never pays the prime contractor, then the prime contractor never has to pay the subcontractors. These clauses are now typical in custom subcontracts developed by many general contractors, and are making their way into industry- drafted subcontract forms. The AGC of California, for example, includes a "pay-if-paid" clause in its Long Form Standard Subcontract.
"Conditional payment clauses are controversial, and have been under attack by subcontractor groups. Several states, including Illinois, North Carolina, and Wisconsin, have passed legislation declaring conditional payment clauses unenforceable. See, e.g., 770 Ill. Comp. Stat. Ann. 60/21; N.C. Gen. Stat. § 22C-2 (1991); Wis. Stat. § 779.135. New York state's highest court struck down conditional payment clauses as violating public policy. West-Fair Elec. Contractors v. Aetna Casualty & Surety Co., (1995) 87 N.Y. 2d 148, 157 [661 N.E. 2d 967, 971; 638 N.Y.S. 2d 394, 398]. A bill was introduced last year in California to abrogate conditional payment clauses, but failed to garner the necessary support. In a 4-3 split decision, the California Supreme Court has done what the legislature could not, ruling "that a general contractor's liability to a subcontractor for work performed may not be made contingent on the owner's payment to the general contractor." Clarke v. Safeco, supra, 64 Cal.Rptr.2d at 587."
The only subcontractor payment policy that we have found in Florida, is associated with Florida's Construction Lien Law. If there is something other than, please let me know. Thank you.
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Reply by jojo_MN on 1/18/07 10:06am
Msg #171495
Lisa already responded to your question. There really needs
to be a law passed country-wide regarding our non-payment for services. We don't make a lot of money as it is compared to the SS and TC. A couple months ago at the end of month, I had 12 last minute cancellations and 3 rescinded loans. I ended up getting paid for one closing. I turned down at least that many signings during that time period. Where is the fairness? I printed the documents for many of them, drove over 500 miles total for these closings. What other business expects their employees or contractors to go that far out of their way to not get paid for their services?
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