Posts
487
Joined
3/19/2009
Location
San Juan Capistrano, CA
US
Hey Guys,
I realize that a moto message board isn't the place to seek legal advice. I know that some of you are in construction and have dealt with a deadbeat sub before, so I'm seeking some direction on my situation.
I entered into a contract (poorly written by them and shame on me for accepting) with a contractor for a total of $10,000 of work. We broke it out into 4 draws, with defined milestones before payment was made. The work was being done about an hour away from where I live, so I wasn't able to be there the entire time to babysit adults. Their work was slow, but it was getting done.
Everything was paid up through 3 draws, with the 4th to be when all work was finished. He said he needed to get paid to pay his guys and keep them going (this should have been a red light), so I cut a check for a good portion of the 4th draw, but not all, and then as you can imagine, he disappeared.
There was a lot of work that was left unfinished and half assed, like most of them guys do. It's disappointing that people do business like that, and it's even more disapppointing that I gave this guy a dollar.
Anyway - I'm putting a civil warrant together to be served. The business was an LLC, with the only member being the name of this guys wife. I also learned that they dissolved the LLC 1 week after I gave the last check. I'm guessing that I have to have the sheriff serve this guy's wife and the business? Does anyone have any experience in this area and know my best route to proceed? Can I serve the wife directly for being the managing member of the business?
Thanks for any help and advice,
Jay
I realize that a moto message board isn't the place to seek legal advice. I know that some of you are in construction and have dealt with a deadbeat sub before, so I'm seeking some direction on my situation.
I entered into a contract (poorly written by them and shame on me for accepting) with a contractor for a total of $10,000 of work. We broke it out into 4 draws, with defined milestones before payment was made. The work was being done about an hour away from where I live, so I wasn't able to be there the entire time to babysit adults. Their work was slow, but it was getting done.
Everything was paid up through 3 draws, with the 4th to be when all work was finished. He said he needed to get paid to pay his guys and keep them going (this should have been a red light), so I cut a check for a good portion of the 4th draw, but not all, and then as you can imagine, he disappeared.
There was a lot of work that was left unfinished and half assed, like most of them guys do. It's disappointing that people do business like that, and it's even more disapppointing that I gave this guy a dollar.
Anyway - I'm putting a civil warrant together to be served. The business was an LLC, with the only member being the name of this guys wife. I also learned that they dissolved the LLC 1 week after I gave the last check. I'm guessing that I have to have the sheriff serve this guy's wife and the business? Does anyone have any experience in this area and know my best route to proceed? Can I serve the wife directly for being the managing member of the business?
Thanks for any help and advice,
Jay
I'm thinking you're just gonna waste your time and money.
She probably doesn't have anything to attach.
The guys, they were hiding behind her all along.
I'd take it as a learning experience. Tuition. You admit, you did not really watch what was going on.
And you knew you should have.
And when they wanted a piece of the 4th you felt uneasy.
But, you gave it to them anyway. Negligence on your part as far as protecting yourself.
You're pissed. Understandable. Throwing more resources down a bottomless pit might make you feel better, revenge wise.
But it will not further your goals to better your life or get ahead.
Be smart, not emotional.
I say suck it up, move on, and don't forget.
Word of advice. It is not your responsibility to pay the other guy's employees. They're on his payroll not yours. He should have enough money in the bank to pay their salaries and in the event that money gets tight he could take a cash advance on his Visa/Mastercard or whatever to pay them or take it out of his business line of credit. If he's running a business and he doesn't have either of those things, again that's not your problem. He should take it up with his employees not you. His employees more than likely wouldn't be happy and who could blame them but that's their problem not yours. Those guys can either quit working for him or take him to court.
Whatever you decide to do good luck moving forward.
Like Grady said, suck it up as a lesson learned and move on.
I just went through this with a concrete guy. He was supposed to be at my house pouring a slab, when the cops stopped by his house he was at home drinking beer.
The police will give him "x" amount of time to complete the job, or face charges. They gave my guy a week to get it done and he got it done.
BTW: I did not even have a contract..but I had texts documenting the cash exchange..etc. Even if the contract is "poorly" written you are still protected.
For example, down payments can only be used for material..they got very strict on this stuff after the recession..
The Shop
It is disturbing that deadbeats and dirtbags have more rights in this country than honest, hard working people.
If he finished the job and the quality of the work was not acceptable I would consider that a civil matter.
Not familiar with other states but CA requires licensed contractor for jobs over $500 and a license requires a $15,000 bond or cash deposit which can be used for claims of financial loss, unpaid employees, etc.
Its easy to identify a contractor or so called contractor that might not perform the job right. They can do it for much less than everyone else.
If its any kind of sizeable dollar amount and you don't want any issues. Check the license status and history, require current certifications for general liability insurance, and workers comp insurance for the General and any subcontractor they hire. And require the General purchase a payment and performance bond. It will add 2 to 3% to the cost but will protect the owner from uncompleted work, and property liens from unpaid employees and suppliers. And lawsuits against homeowners insurance and personal assets if someone gets hurt on your property.
The owner always has control of the payments. Progress payments can be made directly to the subcontractors and suppliers. Third party fiduciary can be hired to control payments to General, subs, and suppliers. Lots of different ways. Smaller projects with a single contractor may not support some of this but at the end of the day the owner always has control. Good reliable quality contractors will cost more but wont have a problem qualifying for or doing these things.
And it all could have been avoided, at the 1st draw.
If the work was shoddy, half assed, don't pay and kick the guy off the job.
But, if you make 3.5 payments out of 4, and all of a sudden you're not happy, something isn't right.
I mean, the 2nd and 3rd draw payments, to some, would mean the work was ok.
I just went thru it, and I'm a licensed contractor.
Storm ripped off a good bit of my metal roof.
Insurance paid, a nice sum.
The roofer was good.
But the drywall/ painters, Fuck.
Went thru 3 sets of nightmares,
First guy worked 2 days, had 2 workers with him. Estimated 10 days. Didn't come back for 2 weeks. Avoided my calls. Got me for $800 on a $3,600 contract. In the contract, finish in 10 days. By the time he came back, had another guy going. Got belligerent with me. Got in his face, got him off the property, and kept all his shit. Scaffolding, paint sprayer, ladders, hand tools. Fuck you asshole. 2 way street here. Had to give it all back when he went to the State Police.
2nd guy, just as bad. Yeah, he was licensed too. One State away, I found out later. State of West Vitginia does not reciprocate with Maryland. Got me for $600, then another $600 on a $2,400 contract. Wasnt supposed to get anything till he was half done. Tried going behind my back to Donna, said I told him to tell her it was okay for her to give him another $1,000. 2 hours after I had told him no more money till he was done, as he was behind as it was.
She called me, I went ballistic, raced home, threw that asshole and his tools out the front door,
And this guy we got off Angie's List.
Then tried some local young guys that help me sometimes when I need labor, maybe keep on budget I thought.
They tried, but boy, that was a mistake. More effing paint on the cabinets, carpets, even tracked it outside onto the decks,
Ended up finishing up myself, and it still isn't really done like some would want/expect.
But hey, it is what it is. Life is short, I really don't have the time, no, I really don't want to spend the time, chasing
a couple of ghosts that have nothing to give anyway,
Learn your lesson. No use throwing good money after bad.
Pit Row
I hate hearing this stuff also.
But, lately, I've come to loath a few other professions also.
The greed in the medical/pharma fields, They act like Little Gods we should bow to, while they rape our pocket.
The deception, the fine print artists that hide behind being an Insurer practice.
The non profits, that prey on your feelings. Look up what the CEO of UNICEF and the Red Cross pull in pay.
Don't even get me started on government.
Yeah, I hate hearing about these low life scoundrels, but when u look around, they aren't alone,
https://youtu.be/qo1QYTAZsD0
By law Here in WI a contractor can face criminal penalties and civil claims due to misappropriation of funds..
It sucks you got hosed, but a little research goes along ways.
The draw structure was as follows:
Draw 1: $1500 to get started (mistake 1)
Draw 2: House on wheels and ready to move
Draw 3: House at destination property and both halves tied together
Draw 4: Job complete
This jack leg dragged out the entire job over 5 months. Seemed like his phone only worked when he needed to get paid. Another of my mistakes was thinking that paying him meant that he was actually going to show back up and do the work he said he was going to do.
I obviously have a lot to learn, and took some licks on this one. Fortunately, this lesson only wound up costing me about $5k-$6k in repairing shitty work, the damage to the yard that they did, and paying people to go in behind this guy to finish the work that he didn't do.
Thanks to everyone that has shared insight. I'm used to dealing with mainly respectable GC and contractors, but this guy was a professional scum. I'm sure I wasn't the first and won't be the last that this guy doops.
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