Before Suing a Contractor: What Are Grounds for Filing a Lawsuit
Though construction businesses understand the importance of providing their clients with work of a certain quality and completing projects on-time, even contractors have been known to fall short of these professional standards. In such situations, it is entirely possible that the dispute will be escalated from the realm of a simple negotiation into legal territory. In this part of our article, we will discuss the most common reasons for suing a contractor, including breach of contract, poor workmanship, negligence, or failure to complete a project.
If a contractor has signed a contract with a client, the specific details of the contract are going to be important if a lawsuit is pursued. For example, if a contractor agrees to use high-quality materials for the construction, but uses sub-par alternatives , then his or her clients might have grounds for a lawsuit. Structural elements of the project might be of lesser quality than was specified in the contract. The work itself might fall short of the promised level of craft. If these discrepancies between contract and construction are significant enough, clients might have grounds to sue.
Negligence is a common reason for suing a contractor, especially because it often goes hand-in-hand with other problems, such as illegal activities or incomplete projects. Though contractors are skilled at everything from building a bedroom to finishing a basement, there are a variety of ways in which they can drop the ball on a current job. The result of this drop is often that the project has to be reworked at the clients’ expense. If a contractor fails to double check his or her work or skips a critical step, for example, he or she may be guilty of a negligent care that results in a loss for the client.
Collecting Evidence to Sue a Contractor
Once you’ve decided to move forward with a lawsuit, it will be necessary to gather as much evidence as you can to support your claims. This evidence will be used to try to prove that the contractor did not perform the work as required by your contract and left you with a job that was not completed correctly or even a job that was not finished at all. The evidence you will need to support your claims is easy to retrieve if it has been properly documented. Keep in mind that it is always best to keep thorough documentation throughout your home construction project. If you have kept detailed, organized notes and photographs of your work, you are already ahead when it comes to collecting evidence against your contractor. There is a good chance that the confronting your contractor will lead to more problems on your work site, and could lead to the contractor abandoning your project entirely. So, it is vitally important that you have lots of proof of the way the work should have been done. Depending on the problems you are facing with your work, and the resolution you are looking for, you may need any or all of the following types of evidence: Contract detailing the type of work that was to be performed Emails and other communication with the contractor Photographs showing the condition of the work completed Photographs showing the work that should have been completed Assessments from other contractors for repair costs and estimate for how to perform the rest of the work Estimates for the correct way to finish up the project Invoices for the money you have paid the contractor Cancelled checks or bank statements showing the amount of money you paid to the contractor While these are just some examples of the evidence that may be needed to support your case, it is not an exhaustive list. The information submitted into evidence will depend on the type of problems you are having with your home project.
Alternative Ways to Resolve a Dispute with a Contractor
Not all disputes with contractors must be resolved in court. As an alternative to litigation, many contracts contain mediation or arbitration provisions. These legal professionals utilize a process to resolve disputes that is less formal than in a courtroom.
With mediation, a neutral person works with the disputing parties to help them resolve their differences. One benefit of this process is that it can be far less costly than a court battle. Additionally, in the event that the dispute is not resolved through mediation, the process is protected so that it cannot be shown to the court.
Arbitration is a more formal proceeding, similar to a trial. The parties present evidence and legal arguments, but they do not go through the same vetting process of a judge and jury. Arbitration can be an excellent alternative to litigation, as it is fast, flexible and cost-effective. Like mediation, though, arbitration can be binding or non-binding. If it is non-binding, either side may still choose to take the matter to court.
In either case, you will want to consult with your legal professional before launching into one of these processes.
Suing a Contractor in Small Claims Court
Filing a complaint in Small Claims Court is usually reserved for the lesser aggressive end of the spectrum of contractor woes. Many people are reluctant to bring a lawsuit of any kind against anyone for that matter; let alone their contractor. Afterall, you still need them to finish the job and get on with your life. But, there are times when that anxiety must be set aside and you must sue your contractor. In fact, small claims court is designed for such times. It allows you to sue without an attorney, at reasonable cost, and with a very expedited resolution. In other words, you can file a small claims matter on Monday and have it resolved by Friday. I have personally resolved many a case in this manner.
The limits of small claims suit in Pennsylvania are $12,000. However, you must be aware that these limits apply to the actual money damages you are requesting. This means that labor and materials that were provided by the contractor, damages for loss of income, along with other more dubious damages such as loss of use, fees to a third party to repair the contractor’s mistakes, emotional stress, and other highly subjective monetary damages do not apply. You may sue only for the amount of money that was not paid, or is actually owed to you. The more robust the contract, the more money can be recovered in small claims court.
It is important to remember that small claims court does not deal in service contracts. Law requires that there be a written contract in order to pursue a case in Small Claims Court. A written contract could be either a formal contract or an informal contract. Either way, there must be a signature on some piece of paper to memorialize the agreement.
Filing Fees are not very high. The amount may vary from one county to another, but you should plan on spending approximately $100. Again, the fees can be much higher if you are suing for substantial amounts of money, but for the most part $100 will cover your needs.
Preparing for a small claims hearing is really no different than preparing for any other hearing before a magistrate or other judicial officer. You need to take ten minutes and read the rules. You need to make a list of witnesses you plan to call. You should assemble written documentation regarding the case that will support your position. And, finally you should be prepared to explain why the contractor should be required to pay you the amount you are suing for.
Do You Need a Lawyer for a Lawsuit Against a Contractor?
If your contractor has been grossly negligent in their duties, a lawyer may be necessary to represent you in a suit. While many homeowner contracts will specify that disputes will be settled through binding arbitration, some do not, and in those cases, hiring a lawyer becomes the only solution. Even if an attorney is not formally needed for representation in court, they are still useful for being the intermediary between you and your difficult contractor.
The type of lawyer you want for this situation is a civil litigation attorney. A lawyer who focuses on contractor lawsuits and construction disputes will have previous experience and knowledge that allows them to understand the nuances of the construction business.
If your suit actually goes to court , you can expect your construction lawyer to help in a variety of ways. For example, they can file a civil complaint on your behalf, prepare for trial, interview witnesses, and build a strong case. If an attorney is hired early, they can work with you to review important documents such as contracts and amendments, and assess the conditions of the work done and labor provided by your contractor. They can also work to settle your claim before it gets to that point.
What Can You Expect from a Lawsuit Against a Contractor?
So what real world results can you expect when filing suit against a contractor? The homeowner’s advantage is that most contractors will be motivated to settle out of court. A contractor’s reputation is often one of its biggest assets. The last thing they want is for any awards to sprout up on the Internet exposing bad work in the public forum. You may end up with a settlement for your losses before you ever have to touch foot in a courtroom. This is the most likely outcome.
If some compensation is not reached and your case goes to court, you may win a settlement as well. Again, most good contractors will settle out of court to avoid any possible bad publicity. Working out a settlement may save the time and trouble of having to completely redo any shoddy work your contractor performed.
In some cases, however, you may have to go through the rigmarole of a complete court action or hiring a new contractor to fix the damages that were caused by the contractor’s poor work. This may involve the other contractor being required to pay you a certain amount of money for repairs or even removing the existing contractor’s work and redoing it yourself. It is certainly worth trying to resolve the matter respectfully first, perhaps by meeting with the offending contractor to have a discussion and see that the matter is resolved. A decent contractor will want to do all necessary repairs or reimburse you for any damages if at all possible.
How to Prevent a Contractor Lawsuit
When it comes to preventing contractor disputes, homeowners can be their own best defense with a few simple steps taken well in advance of entering into a contract. Below are tips on how to protect yourself from a contractor gone bad.
First, be abundantly clear in your contract about what work is to be performed and any materials that will be supplied. Describe what is included, even going so far as specifying a particular type of tile or brand of paint. This way, you will have recourse against the contractor if he or she fails to carry out the work as ordered or if they supply inferior materials.
Second , keep the communication lines open throughout the process. Don’t simply leave the contractor alone to do the job without checking in occasionally to see how things are progressing and whether or not you are satisfied with the work being done. A good contractor will be pleased to be asked. A bad one will make excuses why he or she can’t be reached. That should send up a huge red flag for you.
Third, choose the contractor wisely. Avoid contractors who knock on your door with unsolicited offers to do whatever it is you need done. Simply consult with your local Better Business Bureau, or ask people within your circle of familial, social and business relationships to whom they would recommend you consider hiring.
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