Then recently I learned of another meaning for disgorge, this one referring to getting a contractor to pay you back all of the money you paid them based on some legal technicalities in the state of California.
From the law offices blog of William Porter comes this "If a contractor is unlicensed at any point during its construction work on a project the general rule is that not only will the contractor be unable to sue for any sum it contends it is owed for work on that project, but it may also be required to actually disgorge all sums it received in relation to the entire project, including for work performed while the license was properly in place."
Contractor Lacking License at Any Time During Construction Project Can be Compelled to Refund All Payments Received DuringEntire Project; A Prejudgment Writ of Attachment May Secure Refund This post discusses the legal grounds for disgorgement and describes one case where the claimant received a judgement for $360,000 they paid to their contractor who became unlicensed while performing work.
Disgorgement is the sneaky legal trick a smart attorney will use to seek to force DeckTech to repay all of the money a client paid if they have been unlicensed at any time during the course of construction.
This is not legal advice and is not intended to be...always consult a legal professional for advice.
As Porter warns contractors reading his paper- "The easy rule for contractors to follow is: Do not perform any work on a construction project without a valid California contractors’ license in place at all times. Failure to follow this simple rule may result in the denial of a right to sue, disgorgement of all sums received in relation to the entire project and a prejudgment writ of attachment on all the contractor’s assets."
Wow, could this little legal trick snuff Decktech out? Time could tell...
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