Is the State of California Liable for Financial Losses due to unsigned Budget ?

Question

I own a property that had a 12,000 lien placed against it. During arbitration, the contractor conceded the release of the lien and promised to do so immediately. After the hearing he refused to do so. The arbitrator agreed to order the release of the lien in the award. The arbitrator is now not issuing the award until the budget is signed. The house is in escrow and I stand to lose 690,000.00 if the 'buyer' walks.

Do I have a case against the State who contracts the arbitration company? The Arbitration Company for breech? The contract with the Arbitration states no more than 30 days to issue awards. We are at day 27 with no award in sight.

Answer 1

The arbitration is between you and the contractor.  The arbitrator just facilitates that action.

The issue is not the arbitrator, nor the state.  If the action of the contractor was illegal, then you MIGHT have a case against HIM.

In any event, your loss is NOT $690 k, unless you subsequently have to sell for $690 k less than now.  Your damages would be the actual difference between what it sells for now and what you eventually get for it.  That's all, and even then, only if you can prove the actions of the contractor were directly responsible.

The state and the arbitrator are attempting to solve your problem, but the problem is still, ultimately, between you and the contractor.  

Answer 2

I would walk in on day 31 and hand a legal summons to the arbitration company. A real estate lawyer can help you file the law suit.