My Contractor Is Suing Me!
Written by Chris Uhl
The information contained herein is only to inform the public and does not create an attorney client relationship with the reader. You should always consult an attorney when seeking legal advice.
After years of waiting, you decide to renovate your kitchen. The process you follow is to consult the yellow pages, interview a few contractors and ask for recommendations from friends. You finally settle on a plan and select a contractor. An agreement on a scope of work is reached and you request a price. A few weeks pass before the contractor's price arrives. It is three times higher than you expect. The material and appliance costs alone are more than your budget. You become frustrated and start to shop price with any contractor who will call you back. You end up dealing with who ever will return your call. A contractor who promises you the world for the price you want to pay is awarded the job.
"Laissez-faire" contract negotiations take another week because you have seldom negotiated a contract. You request everything in writing so the contract seems clear. The contract is either a standard AIA (American Institute of Architects) contract or a pre-printed proposal form with filled blanks that requests payments in 1/3 increments.
Now you feel as though you can sit back and watch the construction. At this point the contractor requires up front money and: (a.) You never see them again, (b.) Start the job, never finish, but wants payment in full, or (c.) Completes the job, satisfactorily. Category "A" people are still upset and can find no humor in their situation because it was an outright larceny of money. You are now trying to sue the contractor by serving notice at their Caribbean Island address. Those of you in the other categories receive a knock on the door one day by the constable, many months or possibly years after you last saw your contractor. The constable delivers a piece of paper called a complaint. Now your heart is pounding and you are furious. The contractor is suing me? There is no fun in being sued.
What do I do now? There are two options: represent yourself or hire an attorney. You may be able to represent yourself, if the claim was filed in Small Claims Court. This means the amount of the lawsuit must be under $2,500. In Small Claims Court all the court personnel, including the judges are accustomed to dealing with non legal individuals. If the amount is over $2,500 then the action may be filed in some District Courts or more likely Superior Court. Here you must maneuver carefully so you do not waive any of your rights. These courts are less friendly to non legal individuals. The judge cannot help you because that is considered the practice of law. The judge must remain neutral.
Most kitchen renovations today average from $15,000 to $50,000, so the decision to hire an attorney or go it alone requires a business decision. What is my exposure in the lawsuit? $5,000, $10,000 or $30,000 You may try to settle with the contractor before the first court date. Try not to dig in your heels and give the normal response to the situation; GO TO ...... If the settlement amount is too high or you are completely flabbergasted, then you need to decide what your next move will be. Do not allow the twenty day response period of the complaint go unanswered without some kind of response to the court. This would be considered a default judgment, which means you loose. A letter denying all claims, sent to the court and opposing counsel would protect you from a default judgment. This of course is not the most professional way to proceed but it will buy you time to decide your next move. Soon after your denial of the complaint the interrogatories will follow. You may be able to do most of the leg work yourself, but ultimately if you want to go to trial, you must hire a lawyer.
Your dream kitchen turned into a nightmare that ended up costing more than the original estimate. This job was doomed from the start. Not only did you suffer for three months without a kitchen, but you were unable to sleep at night because of the lawsuit. Unless you are a construction professional, the best advice is to hire a good reputable construction company and pay the extra cost up front. There are a lot of hidden business costs that a fly by night contractor omits and then tries to collect when you are partially through the project. Remember there is no free lunch!
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