I have a small claim's verdict for $9000 against a New Mexico contractor who was lic. and bonded at the time. I have contacted the surety company who said they were not responsible. Is this true and if not what are my options?
1 reply
Feb 27, 2020
It's pretty common for a surety to deny a claim against a contractor's bond. But, if you believe the surety was improper in its determination, it might be worth providing the claim information and the surety's determination to an attorney to have them review the matter. They'd be able to advise on whether or not it might be worthwhile to file suit against the bond in attempt to recover payment.
Notably, though - there are some claims that might not always be appropriate for a contractor's license bond. So, depending on the nature of the dispute and why the award was given, it might be totally reasonable for a surety to deny a claim. Certainly, issues regarding a contractor obeying the licensing rules would be appropriate against a license bond. But, that doesn't mean that every claim against a contractor would make their surety liable.
Admittedly, though - I don't have experience in bringing claims against a license bond, and I certainly don't have experience doing that in New Mexico. So, broaching the matter with a local New Mexico construction attorney might provide some clarity there.
How to enforce a judgment in New Mexico
There are a number different ways to force a contractor to pay a judgment that's been won against them. One of the more common ways to do so would be to file a judgment lien on the contractor's property - and that's a relatively easy process when there's already a judgment in hand. Ultimately, that will stake a claim against their property until they make good on the judgment you've won against them. You can read more about it here: Judgment Liens on Property in New Mexico.
Another option might be to send the debt to collections. While it might not result in the full payment of the claim, it could help make sure that you get something for the judgment that's been won.
For some insight into other collection options, this is a helpful article: Collecting Your New Mexico Judgment.