Lake Forest, CA asked in Consumer Law, Contracts and Construction Law for California

Q: Does cashing a check from my Ca contractor that says paid in full means I can’t go after for the rest of the funds

They are now out of business and the check is good as of today and I wanted to cash this before going after the rest of funds

1 Lawyer Answer
Julie King
Julie King
  • Monterey, CA
  • Licensed in California

A: Yes, cashing a check marked "payment in full" or similar language constitutes the settlement of a claim under California law. If they are out of business, the only way you'll get the rest of your money is to speak with a litigation attorney to see if there is a way to sue the business itself or the business owners personally (but the latter is hard to do if the business is incorporated or an LLC.)

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