Q: Hello- I am a licensed contractor in CA. I lost a binding arbitration case, and client is refusing insurance payment
Client is refusing to sign release form from my liability insurance. Contractors board is threatening to suspend my license. What can I do
A: An arbitration award turned into a judgment may be executed on without the requirement for the creditor to sign a release. But, the judgment creditor should agree to a release in exchange for fast payment. In any event, on payment of the judgment, a sanctification of judgment is required to be filed which should satisfy the board.
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- California
- (916) 704-3009
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- Answered
A:
You’re in a difficult position, but there are steps you can take to protect your license and resolve the situation. First, communicate clearly with your client about the implications of not signing the release form. Explain that signing the release is necessary for the insurance company to issue payment, which benefits both parties.
If your client continues to refuse, consider seeking legal advice to explore whether you can compel the client to sign the release through a court order or other legal means. This might also help demonstrate to the Contractors State License Board (CSLB) that you are taking active steps to resolve the issue in good faith.
Finally, maintain open communication with the CSLB, informing them of your efforts to resolve the situation. Show them documentation of your attempts to comply with their requirements. This may help you avoid or delay any potential suspension while the matter is being resolved.
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