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<p class="MsoNormal">The bond wouldn’t be triggered absent an occurrence during the bond period. It sounds like the client may be out of luck with respect to the bond. Unfortunately, even if the contractor was insured, the CGL policy wouldn’t provide coverage
absent property damage caused by an occurrence within the policy period. It wouldn’t provide coverage for theft (or conversion) of funds. It may still be worth going after the contractor to obtain a judgment as they are good for 10 years and can be renewed
for 10 year periods thereafter. If the contractor owns real property, you can record a judgment lien. If the client proceeds with a lawsuit, I would also plead fraud as a fraud judgment cannot be discharged in bankruptcy (but a judgment for a general breach
of contract or conversion could).<o:p></o:p></p>
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<p class="MsoNormal">Best of luck! I always feel horrible for clients in this scenario. It’s so important to verify licensure, bond, and insurance when hiring a contractor. But then hindsight is always 20/20.<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:3.0pt"><b><span style="font-size:13.0pt;font-family:"Cambria",serif;color:#203864">Inge A. Fordham | Attorney</span></b><span style="font-size:12.0pt"><o:p></o:p></span></p>
<p class="MsoNormal" style="margin-bottom:3.0pt"><span style="font-size:12.0pt;font-family:"Cambria",serif;color:black">Fordham Law, PLLC</span><span style="font-size:12.0pt"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:8.0pt;font-family:"Cambria",serif;color:#7D888E">Confidential Communication:</span></b><span style="font-size:8.0pt;font-family:"Cambria",serif;color:#7D888E"> This email is sent to a recipient on behalf of an
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<p class="MsoNormal"><b><span style="font-size:12.0pt;color:black">From: </span></b><span style="font-size:12.0pt;color:black"><wsbarp-bounces@lists.wsbarppt.com> on behalf of Craig Gourley <craig@glgmail.com><br>
<b>Reply-To: </b>WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Date: </b>Friday, December 10, 2021 at 12:13 PM<br>
<b>To: </b>WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br>
<b>Subject: </b>[WSBARP] Contractor bond question<o:p></o:p></span></p>
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<p class="MsoNormal">Construction bond gurus. I have a client with a contractor bond question that I hope someone has addressed previously and can share the knowledge. Hapless homeowner hires sneaky contractor for a remodel. Hapless pays the contractor in
advance. Contractor works a couple of days and disappears. Hapless would like to go after the bond. So far a common and predictable outcome. Now the fun part. Contractor was suspended by L&I in April. Contract was signed on June 8 for work to start June
16. Bond expired on June 13<sup>th</sup>. Nutshell, unlicensed contractor signs a contract while the bond is in effect but starts work after it expired. Any bond coverage? Why does this feel like a bar question?
<o:p></o:p></p>
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<p class="MsoNormal"><b>B. Craig Gourley<o:p></o:p></b></p>
<p class="MsoNormal"><b>GOURLEY LAW GROUP</b><o:p></o:p></p>
<p class="MsoNormal"><b>THE EXCHANGE CONNECTION</b><o:p></o:p></p>
<p class="MsoNormal"><b>SNOHOMISH ESCROW </b><o:p></o:p></p>
<p class="MsoNormal">P.O. Box 1091<o:p></o:p></p>
<p class="MsoNormal">Snohomish, WA 98291<o:p></o:p></p>
<p class="MsoNormal">PH: (360) 568-5065 (800) 291-8401<o:p></o:p></p>
<p class="MsoNormal">Fax: (360) 568-8092 <o:p></o:p></p>
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