SueEasy
Contractor disputes

Contractor took your deposit and never finished the job?

Tell SueEasy what happened, and it helps you prepare a small claims filing to recover your deposit, plus a license bond claim if the contractor is licensed, with fees starting at $199.

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Sue, the SueEasy assistant
0years
The deadline to sue on a written home improvement contract
0K
The size of a contractor's license bond, shared among everyone who files a claim against it
0%
The most a contractor can legally take as an upfront deposit
Acting early

The cost of waiting to recover your deposit

Evidence gets harder to pull together

Photos, texts, and receipts fade fast once a dispute drags on.

The bond claim has its own, shorter clock

A license bond claim runs on its own clock, set by the surety, and it can be shorter than your four-year contract deadline.

Repair costs climb the longer it sits

The longer a job stays unfinished, the more it typically costs someone else to pick up and finish or fix it.

So will you actually get your money back?

Not every deposit dispute recovers in full. These are the patterns that tend to decide it.

Recovery more likely

  • The deposit was above the legal cap, $1,000 or 10% of the contract price, whichever is less
  • The contractor is licensed and bonded for the trade performed
  • You have dated photos, receipts, and a written estimate
  • The contractor stopped responding or went quiet

Recovery less likely

  • The dispute is really about the quality of finished work, not an abandoned job
  • The job was genuinely under $500 in labor and materials, so no license was required
  • There's no documentation of what was paid or promised
  • The contractor already offered a documented partial refund
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Claim pricing

What it costs to recover your contractor deposit

Prepare
$0

File a Lawsuit, see everything before you pay

  • Full guided intake
  • Deposit and contract checked for common problems
  • Defenses the contractor may raise
  • Draft demand letter preview
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Priced by case size, set automatically
File it yourself
$199–$1,299

Priced by how much is at stake in your case

  • Deposit and damages claimed under $12,500: $199
  • Deposit and damages claimed $12,500–$35,000: $699
  • Deposit and damages claimed over $35,000: $1,299
  • Complete demand letter and filing, ready to go
  • Court fee collected in one checkout
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Add-on
Add attorney review
+$1,000–$1,500

Extra confidence, priced by case size

  • Everything in File it yourself
  • Licensed CA attorney review
  • Revisions before filing
  • Attorney files on your behalf
Add an attorney

Preview everything for free. You only pay to unlock the finished filing package, and the government filing fee is collected in the same checkout.

When you might not need us

If the amount is small, you have a clean written contract and clear photos, and the contractor is still responsive, a demand letter you send yourself may be enough. A quick license and bond status check can tell you fairly fast whether it's worth pursuing further.

The value is in the analysis, not the forms

The small claims form is free everywhere. What we actually charge for is pulling the contractor's exact license and bond information, building a demand letter that cites the correct statute sections, and sequencing a small claims filing alongside a bond claim so you're not leaving money on the table.

Contractor deposit rules

California's rules on contractor deposits and abandoned jobs

"Business & Professions Code" and "CCP" below refer to specific California statutes, cited next to the rule each one supports.

The legal cap

$1,000 or 10% of the contract price, whichever is less, for most home improvement contracts. Business and Professions Code section 7159.5

Progress payments

Payments after the deposit can't exceed the value of work or materials actually delivered at that point.

Excess deposit

Anything collected above the legal cap is a standalone violation you can cite, regardless of how much work ever got done.

Small jobs exempt

Jobs genuinely under $500 in labor and materials don't require a license, so the deposit cap and licensing rules don't apply.

Written contract

Four years from breach. Code of Civil Procedure section 337

Oral agreement

Two years from breach. Code of Civil Procedure section 339

License bond claim

Runs on its own clock, set by the surety (the bonding company), separate from and often shorter than your lawsuit deadline.

Contractor kept promising to return

The clock usually runs from when they clearly stopped performing, not from the last vague promise. Document the date you treated it as over.

Licensed contractor

You have two paths: sue directly, and file against their license bond ($25,000 for most classifications).

Unlicensed contractor

A contractor working without a required license generally can't sue you for payment, and you can often recover everything you paid them. Business and Professions Code section 7031

No bond behind them

An unlicensed contractor has no license bond, so a judgment depends entirely on their personal assets.

License suspended mid-job

Doesn't pause your deadline, but can open up a separate unlicensed-contracting claim for the suspended period.

Legitimate delays

Permit delays or disclosed change orders are a valid reason for a pause, not abandonment.

Work actually delivered

A contractor can be paid for materials and labor genuinely provided, even if the job wasn't finished.

A full and final refund

Accepting a check marked "paid in full" can sometimes limit your ability to pursue the rest, check the terms before cashing it.

No license required

If the job was genuinely under $500 in labor and materials, the case rests on ordinary contract law instead of licensing rules.

Court or bond claim

Should you sue, file a bond claim, or both?

A lawsuit against the contractor and a claim against their license bond solve overlapping but different problems, and you can generally pursue both at once.

The lawsuit

  • Produces an enforceable money judgment
  • Can include the full value of your damages, not capped by the bond amount
  • Needs you to find and serve the contractor
  • Collection still depends on the contractor's own assets

The bond claim

  • Filed directly with the surety company, no lawsuit required first
  • Capped at $25,000 total, shared among everyone with a claim against that contractor
  • Often faster to resolve for a straightforward, undisputed amount
  • Often unaffected if the contractor later files for bankruptcy
A detail worth knowing

The license bond isn't reserved just for you. It pays out to whoever files first among everyone with a claim against that contractor, so if they've abandoned more than one job, filing promptly matters.

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Filing process

How to recover a contractor deposit

01

Before you file

Send a demand letter first, it's often the fastest resolution.

  • Amount & datesTotal paid, dates, and payment method
  • The exact termsWhat was promised in writing
  • What was deliveredWhat's actually done versus what you paid for
  • A number & deadlineWhat you're demanding and a response deadline
02

Check license and bond status

This determines your whole strategy.

  • License lookupThe Contractors State License Board's (CSLB) public license search
  • Bond infoThe surety company's name and bond number
  • ClassificationWhether they're licensed for the work performed
  • Business entityThe exact registered name
03

Confirm your forum

Small claims caps and fees.

  • Individual cap$12,500
  • Business cap$6,250
  • Filing fee$30 to $75, scales with claim size
  • VenueWhere the contractor lives, works, or the job site is
04

File your claim

Form SC-100 (California's small claims court form), plus the bond claim if it applies.

  • Court filingForm SC-100
  • Bond claimFiled separately with the surety
  • Fee waiverAvailable on form FW-001
  • Both at onceA bond claim doesn't require winning your lawsuit first
05

Serve the contractor

You can't serve them yourself.

  • Personal serviceMost reliable
  • Substituted serviceLeave with someone at the business, then mail a copy
  • Certified mailCheapest, only works if they sign
  • Sheriff serviceSmall claims clerks can direct you to it for a modest fee
06

Prepare your evidence

Three copies of everything, one for the judge, the contractor, and you.

  • Contract or estimateYour highest-leverage document
  • Payment proofReceipts, canceled checks, bank or card statements
  • Dated photosBefore, during, and after the contractor left
  • CommunicationTexts or emails showing delays or silence
07

At the hearing, and after

No attorneys allowed at a small claims hearing.

  • Lead with the timelinePaid, promised, delivered, in that order
  • JudgmentPermission to collect, not money in hand
  • CollectingWage garnishment, bank levy, or a lien
  • AppealOnly the defendant can appeal a small claims loss, within 30 days
Common questions

Contractor deposit FAQs

The deposit is capped at $1,000 or 10% of the total contract price, whichever is less, for most home improvement contracts. If your contractor took more than that, say $8,000 on a $40,000 remodel, that excess is a separate violation on its own, regardless of how much work ever got done.

SueEasy is a self-help legal technology product built by LegalForce RAPC Worldwide, P.C. Using SueEasy does not create an attorney-client relationship and does not provide legal advice. We are not a law firm and cannot represent you in court. Every California county provides a free small claims advisor, and we can point you to yours.