Look Before You Leap Into Litigation with Your Contractor

Picture this, you hire a contractor to renovate your kitchen.  The contractor was referred to you by a friend. Therefore, you didn’t do much in the way of vetting his qualifications or otherwise determining whether he was likely to do a good job.  Or maybe he doesn’t have a website and there are no credible reviews online.  You make progress payments along the way and end up paying him $40,000.00 which was a bargain for his work.  Shortly after the project is finished the dishwasher leaks, the kitchen floor is uneven, and your recessed lighting is shorting out.  Of course, you contact the contractor about these problems. He tells you the job is complete and there is nothing more that can be done for you.  Time to sue, right?  Not necessarily.

Where Will the Money Come From?

In a previous video, I discussed that most contractors do not maintain insurance to cover “workmanship” defects such as what I described in our scenario.   So a winning lawsuit against our sloppy contractor would have to be paid out directly by the contractor or, if he is incorporated, the business itself.   What are the chances that a crappy contractor with no online presence has $40,000 in cash laying around?  Not good.  Or worse yet, the contractor himself has money but his business is an LLC. Unfortunately, the business has no assets and will just claim bankruptcy if you secure a judgment against it.

The above scenario is all too common.  But you are not without recourse.  Hiring the right attorney can help minimize the expense involved in finding out how far to pursue the contractor. Or better yet, will help you identify other possibly responsible parties that can pay out a judgment.  For example, you may sue the contractor individually (assuming he has an incorporated business) and force a sale of his personal assets.

If you have a contractor or other business dispute, contact the attorneys at Mobilio Wood today.


On Key

Related Posts


Love in the time of … COVID-19?

If, like almost all Americans at some point in the last three months, because of COVID-19 you have found yourself quarantined with your spouse for

Contact Mobilio Wood today

Online or by telephone at (610) 882-4000 to speak to Attorney Mobilio about your alimony matter. While we serve many areas, we focus our practice on the Lehigh Valley, including Allentown, Bethlehem, Easton, the Poconos and the Philadelphia suburbs including Montgomery and Bucks County.