Sued by a Contractor in California Small Claims Court: What to Do

You hired someone to fix your roof, remodel your bathroom, or repaint the exterior — and now they're suing you in small claims court for the balance. Maybe you withheld payment because the work was defective, maybe you dispute the scope of what was agreed to, or maybe the contractor walked off the job and is still demanding full payment. Whatever the situation, you've been served with Form SC-100 and you have a hearing date.

Here's what you need to know about defending a contractor's claim and whether you can bring your own claim against them at the same hearing.

You Don't File a Written Answer

California small claims court works differently from regular civil court. There is no written answer to file, no deadline to file one, and no demurrer. You preserve all your defenses simply by showing up at the hearing listed on your Form SC-100 papers. If you don't appear, the judge can enter a default judgment against you — even if the contractor's claim has problems.

An optional deadline before the hearing applies if you want to file a counterclaim (Form SC-120) asking the contractor to pay you: that form must be filed and served at least five calendar days before the hearing. If you were personally served with the SC-100 ten calendar days or fewer before the hearing, the SC-120 deadline shrinks to one day before.

Check Whether the Contractor Is Licensed

Before you prepare your defense, look up the contractor on the Contractors State License Board (CSLB) website at cslb.ca.gov. Enter their name or license number.

This matters because California Business and Professions Code § 7031 generally bars an unlicensed contractor from recovering compensation for work that required a license — and can require the return of compensation already paid. If the contractor suing you performed work that required a CSLB license and didn't hold one, this is a substantial defense. The statute has limited exceptions, so the factual question is whether the work required a license and whether the contractor held one when the work was performed.

If the contractor is licensed, check for complaints, disciplinary actions, or bond information in the CSLB record. A pattern of complaints doesn't win your case on its own, but it may support your position if you're arguing the work was defective.

What About a Mechanics' Lien?

Contractors and subcontractors who aren't paid for work on residential property can record a mechanics' lien under California Civil Code §§ 8400–8494. A lien attaches to your property and, if enforced through a separate lawsuit, could force a sale to satisfy the debt.

A mechanics' lien and a small claims case are two different proceedings. The contractor can do both, but the small claims court doesn't have the authority to foreclose a lien — that requires a separate civil action. What matters for your small claims hearing is the underlying debt: does the contractor actually have a valid claim for unpaid work?

If a lien has been recorded against your property, you'll see it in county recorder records. Under Civil Code § 8460, a lien expires and becomes unenforceable if the claimant does not start an enforcement action within 90 days after recording. If the owner and claimant record a qualifying extension of credit, the action is due within 90 days after the extension expires, but no later than one year after completion of the work. An expired lien may remain in county records until removed. The small claims hearing focuses on the money claim; the lien is a parallel pressure point, not something the small claims judge resolves.

Gather Your Evidence

Contractor disputes are won or lost on documentation. The judge is going to hear two people tell different stories about a home improvement project, and the one with organized paperwork has a significant advantage. Prepare three copies of everything — one for the judge, one for the contractor, and one for yourself.

The contract or written agreement. If you have a written contract, it's the starting point. If the agreement was verbal, write out what you understood the scope and price to be.

Photos and videos. Before-and-after photos of the work area, photos of defects, incomplete work, or damage caused by the contractor's crew. Print them in color and label each one with the date taken and what it shows.

Communication records. Text messages, emails, and voicemails discussing the project scope, complaints about the work, and payment history. Print these in chronological order.

Payment records. Bank statements, cancelled checks, Venmo or Zelle screenshots, and receipts showing every payment you made. If you paid cash, any written receipt or acknowledgment from the contractor.

Repair estimates or invoices. If you hired someone else to fix or complete the contractor's work, bring those invoices. These establish your actual damages if you're filing a counterclaim.

Inspection reports. A city building inspector's report, a licensed contractor's written assessment, or photos showing code violations in the work.

Filing a Counterclaim (Form SC-120)

If the contractor's work was defective, incomplete, or damaged your property, you can file your own claim against them at the same hearing using Form SC-120. This is your counterclaim. You're not limited to just defending against their claim — you can ask the judge to award you money for the cost of repairs, incomplete work, or property damage.

The monetary cap for individuals is $12,500 per claim. If your damages exceed that amount, you can waive the excess to stay in small claims court or file a separate action in limited civil court.

Filing fees for an SC-120 are $30 for claims up to $1,500, $50 for claims between $1,501 and $5,000, and $75 for claims between $5,001 and $12,500. If you can't afford the fee, Form FW-001 lets you request a fee waiver.

Remember the deadline: file and serve the SC-120 at least five calendar days before the hearing (one day if you were served with the SC-100 ten calendar days or fewer before the hearing).

What Happens at the Hearing

Small claims hearings are informal and typically last 10 to 15 minutes. No attorneys are allowed to represent either side. The judge (or a temporary judge if both parties consent) will hear each side's version, look at the evidence, and ask questions.

The contractor goes first as the plaintiff, explaining why you owe money. Then you present your side — why the amount is wrong, the work was defective, the contract was different from what the contractor claims, or any other defense. If you filed an SC-120 counterclaim, you'll also present your claim.

Most judges don't announce a decision on the spot. You'll receive Form SC-130 (Notice of Entry of Judgment) by mail, usually within a few weeks.

If the judgment goes against you on the contractor's claim, you have 30 days from the mailing date of SC-130 to file an appeal using Form SC-140. Defendants have the right to appeal; plaintiffs don't. An appeal gets you a completely new trial in front of a different judge, and this time both sides can have attorneys.

Common Defenses in Contractor Disputes

The contractor has to prove their claim, but you should support your defenses with specifics:

• The work was defective or incomplete. Show photos, repair invoices, or an inspection report establishing that the contractor didn't deliver what was promised.
• The contractor was unlicensed. Under Business and Professions Code § 7031, this can bar recovery entirely for work requiring a license.
• You already paid in full. Payment records and the contract price establish that nothing is owed.
• The amount claimed is inflated. The contract says one price; the contractor is suing for a different one, without a signed change order.
• The work caused property damage. The contractor's crew damaged something unrelated to the project scope.

Get the Full Procedural Walkthrough

This post covers the contractor-specific angles, but responding to a small claims case involves several procedural steps — understanding your Form SC-100 papers, evaluating all six response options, preparing your evidence, and knowing what happens after the decision. The Responding to a Small Claims Case in California guide walks through every step from the day you're served to the day after judgment.

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