Asked in Construction Law and Business Law for California

Q: Hi, we have had an LLC B-lic construction company for 16 years, we gave RMO 2 years ago, and he got a CSLB complaint.

The RMO tried to get a settlement with the customer many times, but he refused, and now CSLB has started its investigation.

1. How does it Affect me?

2. will it show on CSLB on my license?

3. What are your recommendations?

Thank you!

2 Lawyer Answers
Adam Stoddard
Adam Stoddard
  • Construction Law Lawyer
  • Santa Clara, CA
  • Licensed in California

A: I believe the CSLB will perform an investigation; however, if there are no violations found, they likely will take no action. If there are violations found, the CSLB could suspend your license, revoke the license, make you pay a fine/penalty, public letter of reprimand, etc. I do not believe the investigation is public, only if they take action will something become public. Assuming no violations found and no action taken by the CSLB, this should not affect you.

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Construction Law Lawyer
  • Sacramento, CA
  • Licensed in California

A: As the owner of the LLC B-lic construction company, you may still be held liable for any violations or complaints filed with the CSLB, even if you have designated an RMO.

In terms of how it affects you, it could potentially impact your reputation as a licensed contractor and may affect your ability to bid on future projects. If the CSLB investigation finds any violations, you could also face disciplinary action such as fines, suspension or revocation of your license.

It is possible that the complaint may show up on your license record if the CSLB takes disciplinary action against your company.

In terms of recommendations, it is important to work with your RMO to ensure that any complaints are handled promptly and effectively. You may also want to consult with a construction law attorney to understand your rights and options. It is also important to review your contract terms and make sure you have proper insurance coverage to protect your business in case of any legal action.

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