Contractor took deposit but never did any work. What next?
Contractor took deposit but never did any work. What next?
[Thread is bumped from 2017 (Page 2) --admin LadyGeek]
I was hoping to get some advice on my problem.
Story:
It will be little vague incase it ends up in litigation. A few months ago I hired a contractor to do some work on my house. We signed a contract and I paid him a sizable deposit to buy the necessary items and then start working. During the next few months he had very sporadic communication even when sending texts or phone calls to get in touch and see what the progress was. He stated that he had issues acquiring some of those items and would need more time. I even directed him to a custom manufacturer who will do what I want. Finally after several months of this sporadic back and forth he said he ordered everything and it will be shipped in 4-6 weeks. 8 weeks later nothing. I finally asked him for a refund on my deposit which he said he will do and I have not heard from him since. Clearly he has been jerking me around and has stolen my deposit.
I figure I have two options:
1) Accept the money is gone forever and move on with life hiring another contractor.
2) Get a lawyer, pay money and hope that maybe I get some of it back. The deposit is well above the small claims court maximum.
Has anyone had an issue like this? Can anyone offer advice on what I should do or what type of lawyer I should look for?
I was hoping to get some advice on my problem.
Story:
It will be little vague incase it ends up in litigation. A few months ago I hired a contractor to do some work on my house. We signed a contract and I paid him a sizable deposit to buy the necessary items and then start working. During the next few months he had very sporadic communication even when sending texts or phone calls to get in touch and see what the progress was. He stated that he had issues acquiring some of those items and would need more time. I even directed him to a custom manufacturer who will do what I want. Finally after several months of this sporadic back and forth he said he ordered everything and it will be shipped in 4-6 weeks. 8 weeks later nothing. I finally asked him for a refund on my deposit which he said he will do and I have not heard from him since. Clearly he has been jerking me around and has stolen my deposit.
I figure I have two options:
1) Accept the money is gone forever and move on with life hiring another contractor.
2) Get a lawyer, pay money and hope that maybe I get some of it back. The deposit is well above the small claims court maximum.
Has anyone had an issue like this? Can anyone offer advice on what I should do or what type of lawyer I should look for?
A time to EVALUATE your jitters: |
viewtopic.php?p=1139732#p1139732
- White Coat Investor
- Posts: 17338
- Joined: Fri Mar 02, 2007 8:11 pm
- Location: Greatest Snow On Earth
Re: Contractor took deposit but never did any work. What next?
I'd get a lawyer and take his advice and ignore the rest of what is posted in this thread.
You might be surprised what a letter from a lawyer may get you.
You might be surprised what a letter from a lawyer may get you.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy |
4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
Re: Contractor took deposit but never did any work. What next?
Does your state have contractor licensing? If so, check to see if he is licensed. Many states with contractor licensing require the contractors to carry general bonds associated with their license to protect from issues such as you describe. If you decide to go after his license and /or bond, do not give him any warning that you are doing so. However, before you do it, you need a robust paper trail. Check your contract and see what it says about notice, and follow that to a t, to give the contractor notice of non performance, and give a "cure" time. Be careful with this. You don't want a non-responsive contractor to start tearing things out to make a show of progress. Document the previous conversations in your noticed letter, that he has told you the delay is due to a delay in ordering, and for the cure request that he deliver all ordered materials for which you have paid to your house no later than x date. Then when he does not deliver the materials you can report him. At that point you may also be able to report him to the police for theft.
- ResearchMed
- Posts: 16768
- Joined: Fri Dec 26, 2008 10:25 pm
Re: Contractor took deposit but never did any work. What next?
This ^White Coat Investor wrote:I'd get a lawyer and take his advice and ignore the rest of what is posted in this thread.
You might be surprised what a letter from a lawyer may get you.
Also, make sure to ask your attorney if your state has special penalties for "consumer fraud", which in our state means 3x the loss.
(Some states will also include legal fees.)
In some cases, simply mentioning to the vendor (in writing) that you are aware of the consumer fraud regs and will file for them if necessary... will get a favorable response.
However, IF you are truly considering using an attorney if necessary, then be very careful before communicating further except through the attorney.
You wouldn't want to jeopardize your rights by inadvertently using the wrong words/phrases/etc. Legal meanings can be very specific and sometimes different from everyday usage.
Good luck.
RM
This signature is a placebo. You are in the control group.
Re: Contractor took deposit but never did any work. What next?
White Coat Investor wrote:I'd get a lawyer and take his advice and ignore the rest of what is posted in this thread.
You might be surprised what a letter from a lawyer may get you.
Lawyers do cost money. Presuming OP hired a licensed contractor, I would consider what Savings suggested and file a claim against his bond, if applicable in his state.
"Don't trust everything you read on the Internet"- Abraham Lincoln
Re: Contractor took deposit but never did any work. What next?
In my state when this happened years ago to me, all you could do was file suit in small claims court, at which you'd win and get a judgement that is virtually impossible to collect on.
They passed some law to make this sort of thing a criminal offense in my state. Now you can call the police and they will handle it. People have been put in jail for it. However, the victim has to have all documentation, including proof that the money came from your account and went to the crook.
Most of the contractors who skip out on work after a deposit in my experience are professional deadbeats and you should consider the money gone, the only thing you can really do is have the crook punished somehow under the law.
They passed some law to make this sort of thing a criminal offense in my state. Now you can call the police and they will handle it. People have been put in jail for it. However, the victim has to have all documentation, including proof that the money came from your account and went to the crook.
Most of the contractors who skip out on work after a deposit in my experience are professional deadbeats and you should consider the money gone, the only thing you can really do is have the crook punished somehow under the law.
Re: Contractor took deposit but never did any work. What next?
I would not let this person work on your house. I think he would wreck it.
In the interests of not spending a large amount of further money on this, if avoidable, I would first call your state licensing board.
I would eventually also complain to the BBB. The BBB tried but failed to get my money back in a similar, fortunately for me apparently less expensive situation, but at least anyone checking the BBB reviews would see this, although it also occurs to me that these people probably operate under different names. Also, at some point put bad reviews online everywhere you can think of.
In the interests of not spending a large amount of further money on this, if avoidable, I would first call your state licensing board.
I would eventually also complain to the BBB. The BBB tried but failed to get my money back in a similar, fortunately for me apparently less expensive situation, but at least anyone checking the BBB reviews would see this, although it also occurs to me that these people probably operate under different names. Also, at some point put bad reviews online everywhere you can think of.
Re: Contractor took deposit but never did any work. What next?
Unfortunately your money is probably gone. Consider this a lesson learned. Next time YOU buy all the material...they can provide you with a list. Its not difficult.
Re: Contractor took deposit but never did any work. What next?
how much was the deposit?
did you have a written contract? or verbal contract? (maybe I missed it)
would appreciate followups on this as it resolves.
did you have a written contract? or verbal contract? (maybe I missed it)
would appreciate followups on this as it resolves.
Long is the way and hard, that out of Hell leads up to light.
-
- Posts: 1879
- Joined: Fri Feb 20, 2015 2:14 pm
Re: Contractor took deposit but never did any work. What next?
Happened to me for $1100. Had to delay the project due to a hail storm and wanted that fixed first. 2 years later nothing. Thought about small claims but just didn't want to go through the hassle. Been there and done that before. Won the case and never got paid. Next step was to file a lein, garnishment etc. More $ to spend, there person didn't work and her husband was deployed overseas. Dropped it there.EnjoyIt wrote:I was hoping to get some advice on my problem.
Story:
It will be little vague incase it ends up in litigation. A few months ago I hired a contractor to do some work on my house. We signed a contract and I paid him a sizable deposit to buy the necessary items and then start working. During the next few months he had very sporadic communication even when sending texts or phone calls to get in touch and see what the progress was. He stated that he had issues acquiring some of those items and would need more time. I even directed him to a custom manufacturer who will do what I want. Finally after several months of this sporadic back and forth he said he ordered everything and it will be shipped in 4-6 weeks. 8 weeks later nothing. I finally asked him for a refund on my deposit which he said he will do and I have not heard from him since. Clearly he has been jerking me around and has stolen my deposit.
I figure I have two options:
1) Accept the money is gone forever and move on with life hiring another contractor.
2) Get a lawyer, pay money and hope that maybe I get some of it back. The deposit is well above the small claims court maximum.
Has anyone had an issue like this? Can anyone offer advice on what I should do or what type of lawyer I should look for?
Getting a lawyer would be an option. The letter may get the money back, the work done or nothing. If nothing, then you can choose litigation or to drop it. Litigation costs money upfront and if you win the case there is no guarantee you get paid.
Re: Contractor took deposit but never did any work. What next?
You can get a lawyer, see if that works.... If not become the squeaky wheel if you think it's worth it.
-
- Posts: 5761
- Joined: Mon Sep 22, 2014 4:47 pm
Re: Contractor took deposit but never did any work. What next?
Lawyers cost more than small claims court. I'm not sure how to judge the relative impact of a letter from a lawyer (when the contractor knows it's going to cost lots of money to pursue beyond the letter) or small claims (with possible difficulty in collecting). You could be out more money in either case.
In a similar situation, I wrote my own demand letter, threatened small claims, and got my money without going to court.
By the way, a demand letter is the first formal step and it's something you can do yourself. Google it.
In a similar situation, I wrote my own demand letter, threatened small claims, and got my money without going to court.
By the way, a demand letter is the first formal step and it's something you can do yourself. Google it.
Re: Contractor took deposit but never did any work. What next?
follow up and answer some questions:
1) I contacted a lawyer today and awaiting for a response
2) I would prefer not to divulge the exact amount but it is for a 5 figure sum which is well above the small claims court maximum. If it was something like $1500 I would just eat the loss, but at 5 figures I am willing to spend some money in the hopes of getting it back.
3) We have a written contract and he deposited my checks at a nearby bank.
1) I contacted a lawyer today and awaiting for a response
2) I would prefer not to divulge the exact amount but it is for a 5 figure sum which is well above the small claims court maximum. If it was something like $1500 I would just eat the loss, but at 5 figures I am willing to spend some money in the hopes of getting it back.
3) We have a written contract and he deposited my checks at a nearby bank.
A time to EVALUATE your jitters: |
viewtopic.php?p=1139732#p1139732
Re: Contractor took deposit but never did any work. What next?
^ You didn't say if he was bonded with the state's contractors licensing board. That would be your first port of call. If not, you can try and get a judgment against him but enforcement is another issue.
- Clever_Username
- Posts: 1915
- Joined: Sun Jul 15, 2012 12:24 am
- Location: Southern California
Re: Contractor took deposit but never did any work. What next?
Was he a licensed contractor? If so, are you going to file a claim against his license number?EnjoyIt wrote:follow up and answer some questions:
1) I contacted a lawyer today and awaiting for a response
2) I would prefer not to divulge the exact amount but it is for a 5 figure sum which is well above the small claims court maximum. If it was something like $1500 I would just eat the loss, but at 5 figures I am willing to spend some money in the hopes of getting it back.
3) We have a written contract and he deposited my checks at a nearby bank.
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_ |
|
I survived my first downturn and all I got was this signature line.
-
- Posts: 1712
- Joined: Wed Nov 05, 2014 2:23 pm
Re: Contractor took deposit but never did any work. What next?
Dealt with bad contractors before. Start with your states Department of Professional and Occupational Regulation. These guys are worse than the courts - no joke! They will fine for jerking you around and a long list of other things (no business license # on contract = $5,000 fine) and can suspend their license indefinitely. The one time I had an issue, before submitting my complaint to DPOR, I sent emailed the draft to the contractor and got a call in less than hour, visit at the end of the day to access problem and problem solved the next week. They don't mess around and almost always lean in favor of the customer.EnjoyIt wrote: Has anyone had an issue like this? Can anyone offer advice on what I should do or what type of lawyer I should look for?
Re: Contractor took deposit but never did any work. What next?
I've used the letter from a lawyer solution when I was building a pool and the contractor was taking forever to finish the job and had stopped returning phone calls, and it had a dramatically positive effect on the situation. The key is figuring out what is important to this particular contractor. Is their reputation important to them? What is their financial situation- but the business and the individual (eg: if you sue them, will they be able to give you your money back plus legal fees)?
Find out what you can about the person that took your money and make sure to take that into consideration as you plan you next moves.
Find out what you can about the person that took your money and make sure to take that into consideration as you plan you next moves.
Re: Contractor took deposit but never did any work. What next?
Continue to follow through with the lawyer and state license board.EnjoyIt wrote:follow up and answer some questions:
1) I contacted a lawyer today and awaiting for a response
2) I would prefer not to divulge the exact amount but it is for a 5 figure sum which is well above the small claims court maximum. If it was something like $1500 I would just eat the loss, but at 5 figures I am willing to spend some money in the hopes of getting it back.
3) We have a written contract and he deposited my checks at a nearby bank.
But also take this as an opportunity to educate yourself on the law in your state regarding deposits for construction work. For example, in California, a contractor cannot require a deposit greater than 10% of the estimate or $1000, whichever is lesser. It's also illegal for a contractor to ask for payment of materials before the materials are delivered to the job site. Here's a page on the California law: http://www.cslb.ca.gov/Media_Room/Press ... st_15.aspx
Everything your contractor asked for would be illegal in California, and a major red flag during the contract negotiation process. I recently had $8000 of work done on my house and my contractor required no deposit. Legitimate contractors know they can file a lien if you don't pay up for work performed. Check your state law carefully so you don't make similar mistakes in the future.
Re: Contractor took deposit but never did any work. What next?
A contractor once told me he needed a check as deposit to pay for the materials up front, mid 4 figures, I told him I would meet him at the supplier and pay for the materials, he said no, he needed the money up front, I said no, I'm not willing to do that. He left. I think I dodged a bullet.
Re: Contractor took deposit but never did any work. What next?
Hard to tell, it could be that he had a lot of business and thought you could be a pain to him so he didn't want your business, or he could have been a fraudster. Hard to tell , but I think we under-appreciate how much business is underwritten implicitly in people trusting each other.mptfan wrote:A contractor once told me he needed a check as deposit to pay for the materials up front, mid 4 figures, I told him I would meet him at the supplier and pay for the materials, he said no, he needed the money up front, I said no, I'm not willing to do that. He left. I think I dodged a bullet.
"Don't trust everything you read on the Internet"- Abraham Lincoln
- SmileyFace
- Posts: 9083
- Joined: Wed Feb 19, 2014 9:11 am
Re: Contractor took deposit but never did any work. What next?
It depends upon what you mean by sizeable. If under the small claims court limit for your state write your own demand letter and then file with small claims court if he is unresponsive. If over the limit work with a lawyer.
I got money back with a demand letter and threat of court - it will tell him you are serious.
I got money back with a demand letter and threat of court - it will tell him you are serious.
Re: Contractor took deposit but never did any work. What next?
In CT, all licensed home improvement contractors contribute to a "guarantee" fund which is used to reimburse consumers in this kind of situation and similar ones. However, it only covers licensed contractors. If you use an unlicensed contractor, don't plan on getting reimbursement from the fund. "Bonding" of contractors for these kind of jobs is not common.
Large contractors who do public contracts (buildings, roads, sewers, etc) generally are required to furnish a Surety Bond. If the contractor goes "belly-up", the Surety will typically takeover, complete the job, and guarantee payment of subs, etc. You can always ask a contractor to provide a bond but the reality is the cost of the bond will be added to the price of the job.
Large contractors who do public contracts (buildings, roads, sewers, etc) generally are required to furnish a Surety Bond. If the contractor goes "belly-up", the Surety will typically takeover, complete the job, and guarantee payment of subs, etc. You can always ask a contractor to provide a bond but the reality is the cost of the bond will be added to the price of the job.
Re: Contractor took deposit but never did any work. What next?
Just a quick update. I looked to check if this contractor owns any property and he does not. I am having a lawyer write him a letter to start. It will be my first expenditure on trying to get money back ($150.)
A time to EVALUATE your jitters: |
viewtopic.php?p=1139732#p1139732
-
- Posts: 3512
- Joined: Sat Mar 04, 2017 4:28 pm
- Location: Western Washington
Re: Contractor took deposit but never did any work. What next?
Even for $1500, I would file a complaint with your local licensing authority for a contractors, assuming the requirements in your area are similar to mine. Part of their job is to ensure the accountability of contractors.EnjoyIt wrote: 2) I would prefer not to divulge the exact amount but it is for a 5 figure sum which is well above the small claims court maximum. If it was something like $1500 I would just eat the loss, but at 5 figures I am willing to spend some money in the hopes of getting it back.
I'm not an expert on this, but I think if he failed to respond with evidence he performed the contracted work, they would reimburse you out of his bond. If he doesn't have a bond and one was required, they may investigate him for violating contracting laws.
I think the bond amount is usually about the same as the small claims limit though, so for your case, working with a lawyer is probably a wise move.
If he was not licensed, then definitely the lawyer was the right move with as much money as you're talking about.
-
- Posts: 1430
- Joined: Fri Dec 11, 2015 11:40 am
Re: Contractor took deposit but never did any work. What next?
small claims court can handle this you don't really need a lawyer. I've won several cases like this.
-
- Posts: 3512
- Joined: Sat Mar 04, 2017 4:28 pm
- Location: Western Washington
Re: Contractor took deposit but never did any work. What next?
I highly recommend reading at least the very first post in a thread before responding.tesuzuki2002 wrote:small claims court can handle this you don't really need a lawyer. I've won several cases like this.
Re: Contractor took deposit but never did any work. What next?
As a lawyer i can tell you that at five figures it is worth retaining a lawyer to advise you on your options. You can then decide what to do. His advice should not be more than a few hundred dollars depending on where you live -- if the facts are as simple as you say. In my opinion it is worth spending a few hundred dollars to understand your options and possibilities of recovering the five figure sum.
-
- Posts: 6993
- Joined: Mon Jan 03, 2011 8:40 am
Re: Contractor took deposit but never did any work. What next?
I would agree with getting a lawyer. BUT I think folks on here are bit idealistic about getting lawyers involved. I've been in litigation before with my previous employer and it is NOT what the movies make it seem. It isn't like they write a letter and everything works out. Even if you win a legal case here doesn't mean you will ever see the money again. That is sad and unfortunate but it is true. Having lawyers involved is the right move here as you have an impasse with the offending party, BUT don't expect it to be so easy to recover the money.White Coat Investor wrote:I'd get a lawyer and take his advice and ignore the rest of what is posted in this thread.
You might be surprised what a letter from a lawyer may get you.
Won't help you, but maybe others, but this is why one has to deal ONLY with reputable tradesman. Cost should not be the overriding factor in deciding who to use. Use someone who will not rip you off should be no. 1. That is why I am very cautious who I use to do trade work. Too many fly by night folks. They either rip you off, they do shoddy work, they don't fix unintentional problems that my arise, or any combination of those.
Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” |
-Jack Bogle
Re: Contractor took deposit but never did any work. What next?
Your rights and correct course of action depend very much on what state you live in.
This same thing happened to me two years ago and I followed all the proper steps and am still out $1,900.
A fencing contractor collected many deposits in our general area after a monster storm and then skipped town.
I was able to contact other victims and collectively (~$50,000) our cases allowed us to file criminal charges as well as individual small claims cases. We all won our small claims cases. Additionally we talked the state's attorney into extraditing the contractor from the state he fled to. He was brought back to our state and found guilty on criminal fraud.
I received about $100 in restitution payments until the state let him leave to his home state. Have not seen a dime since and he has disappeared.
My situation and the OP's is not uncommon at all. These are career criminals. If I had to do this all over again, I would have written off the original $2k and moved on.
This same thing happened to me two years ago and I followed all the proper steps and am still out $1,900.
A fencing contractor collected many deposits in our general area after a monster storm and then skipped town.
I was able to contact other victims and collectively (~$50,000) our cases allowed us to file criminal charges as well as individual small claims cases. We all won our small claims cases. Additionally we talked the state's attorney into extraditing the contractor from the state he fled to. He was brought back to our state and found guilty on criminal fraud.
I received about $100 in restitution payments until the state let him leave to his home state. Have not seen a dime since and he has disappeared.
My situation and the OP's is not uncommon at all. These are career criminals. If I had to do this all over again, I would have written off the original $2k and moved on.
Re: Contractor took deposit but never did any work. What next?
It depends heavily on your state. Here in Oregon they lean heavily toward the contractor.ddurrett896 wrote:...Start with your states Department of Professional and Occupational Regulation. These guys are worse than the courts - no joke! They will fine for jerking you around and a long list of other things (no business license # on contract = $5,000 fine) and can suspend their license indefinitely. The one time I had an issue, before submitting my complaint to DPOR, I sent emailed the draft to the contractor and got a call in less than hour, visit at the end of the day to access problem and problem solved the next week. They don't mess around and almost always lean in favor of the customer.
I read about a case where a contractor build a retaining wall on the wrong lot and the contractor licensing board said the owner of the lot had to pay for it because it increased the value of his lot.
Answering a question is easy -- asking the right question is the hard part.
Re: Contractor took deposit but never did any work. What next?
In this case this is certainly self serving, the board collects money to license the contractor and the contractor makes money no matter what happens.CurlyDave wrote: It depends heavily on your state. Here in Oregon they lean heavily toward the contractor.
I read about a case where a contractor build a retaining wall on the wrong lot and the contractor licensing board said the owner of the lot had to pay for it because it increased the value of his lot.
Re: Contractor took deposit but never did any work. What next?
OP, what state are you in? Many states have criminal laws regarding contractor fraud, and if you think this contractor did this on purpose, you should follow that route.
Here's an example of a law in Louisiana. You meet the criteria:
Here's an example of a law in Louisiana. You meet the criteria:
If someone took an amount in the 5 digit range from me and then ignored me, I would pursue civil and criminal options.Louisiana Law wrote: §202.1. Residential contractor fraud; penalties
A. Residential contractor fraud is the misappropriation or intentional taking of anything of value which belongs to another, either without the consent of the other to the misappropriation or taking, or by means of fraudulent conduct, practices, or representations by a person who has contracted to perform any home improvement or residential construction, or who has subcontracted for the performance of any home improvement or residential construction. A misappropriation or intentional taking may be inferred when a person does any of the following:
(1) Fails to perform any work during a forty-five-day period of time or longer after receiving payment, unless a longer period is specified in the contract.
(2) Uses, or causes an agent or employee to use, any deception, false pretense, or false promise to cause any person to enter into a contract for home improvements or residential construction.
(3) Damages the property of any person with the intent to induce that person to enter into a contract for home improvements or residential construction.
(4) Knowingly makes a material misrepresentation of fact in any application for a permit required by state, municipal, or parochial law.
(5) Knowingly makes a material misrepresentation of fact in any lien placed upon the property at issue.
(6) Fails to possess the required license for home improvements or residential construction required by applicable state, municipal, or parochial statute.
(7) Knowingly employs a subcontractor who does not possess the required license by applicable state, municipal, or parochial statute.
B. For purposes of this Section, "home improvement or residential construction" means any alteration, repair, modification, construction, or other improvement to any immovable or movable property primarily designed or used as a residence or to any structure within the residence or upon the land adjacent to the residence.
C.(1) When the misappropriation or intentional taking amounts to a value of less than five hundred dollars, the offender shall be imprisoned for not more than six months, fined not more than one thousand dollars, or both.
(2) When the misappropriation or intentional taking amounts to a value of five hundred dollars or more, but less than one thousand five hundred dollars, the offender shall be imprisoned, with or without hard labor, for not more than five years, or may be fined not more than two thousand dollars, or both.
(3) When the misappropriation or intentional taking amounts to a value of one thousand five hundred dollars or more, the offender shall be imprisoned, with or without hard labor, for not more than ten years, or may be fined not more than three thousand dollars, or both.
Re: Contractor took deposit but never did any work. What next?
It appears the contractor has no property in the state this occurred. I have contacted a lawyer who will for $150 write him a letter. The unfortunate part is that I have no idea where he lives at this time. If this was for a few thousand I would forget about it, but for 5 figures I want this guy in jail at the very least. In all honesty I suspect the money is gone forever and the question now is, how much effort and more money do I throw at the problem?
A time to EVALUATE your jitters: |
viewtopic.php?p=1139732#p1139732
Re: Contractor took deposit but never did any work. What next?
This was the first challenge with my dead-beat contractor... finding him. In our county/state, you cannot win a civil suit by 'default' unless you can first serve the court papers to the accused.EnjoyIt wrote:It appears the contractor has no property in the state this occurred. I have contacted a lawyer who will for $150 write him a letter. The unfortunate part is that I have no idea where he lives at this time. If this was for a few thousand I would forget about it, but for 5 figures I want this guy in jail at the very least. In all honesty I suspect the money is gone forever and the question now is, how much effort and more money do I throw at the problem?
I was able to glean enough info from his family's Facebook pages (many had their FB privacy set to 'public') to locate him in another state and hire a process server to serve him.
The next challenge will be actually collecting on the judgement you (may or may not) win.
Re: Contractor took deposit but never did any work. What next?
Did you scan the thread? Most states require licensed contractors to have a bond and a public mailing address.... Did you check for this this? The attorney should know this.EnjoyIt wrote:It appears the contractor has no property in the state this occurred. I have contacted a lawyer who will for $150 write him a letter. The unfortunate part is that I have no idea where he lives at this time. If this was for a few thousand I would forget about it, but for 5 figures I want this guy in jail at the very least. In all honesty I suspect the money is gone forever and the question now is, how much effort and more money do I throw at the problem?
"Don't trust everything you read on the Internet"- Abraham Lincoln
Re: Contractor took deposit but never did any work. What next?
If a licensed contractor, he will be bonded and the state contractors board will establish an administrative action against him. Start there. Lawyer is the next step.
Re: Contractor took deposit but never did any work. What next?
A quick google search tells me that Texas does not have a licensing requirement for general contractors. Unless I am missing something.
A time to EVALUATE your jitters: |
viewtopic.php?p=1139732#p1139732
Re: Contractor took deposit but never did any work. What next?
Did you check the contractor's construction account, as required by Texas law according to https://www.texasattorneygeneral.gov/cp ... and-repair ?EnjoyIt wrote:A quick google search tells me that Texas does not have a licensing requirement for general contractors. Unless I am missing something.
If your homestead improvement exceeds $5,000 in cost, the contractor is required by law to deposit your payments in a construction account at a financial institution. Ask the contractor for written verification of the existence of the construction account. Monitor deposits and disbursements to subcontractors, laborers, and vendors. Access to the account record should be included as a requirement in your written construction contract.
Re: Contractor took deposit but never did any work. What next?
As a long time contractor (home builder) in Texas, I am so sorry to hear about your situation. I have actually been asked to rescue homeowners and complete 3 homes where sleazy contractors took money from clients and did not perform. In one situation it was turned over to the local DA who prosecuted the contractor. Someone mentioned a required construction account, this is correct, and if you do sue or prosecute the contractor and he did not place your money in this account, it will be evidence against him. But it does not mean your money is in that account. I would get a good construction law attorney to help you sort this out.EnjoyIt wrote:It appears the contractor has no property in the state this occurred. I have contacted a lawyer who will for $150 write him a letter. The unfortunate part is that I have no idea where he lives at this time. If this was for a few thousand I would forget about it, but for 5 figures I want this guy in jail at the very least. In all honesty I suspect the money is gone forever and the question now is, how much effort and more money do I throw at the problem?
Allan
Re: Contractor took deposit but never did any work. What next?
There is nothing to check as he does not respond to my requests to talk with him.Mudpuppy wrote:Did you check the contractor's construction account, as required by Texas law according to https://www.texasattorneygeneral.gov/cp ... and-repair ?EnjoyIt wrote:A quick google search tells me that Texas does not have a licensing requirement for general contractors. Unless I am missing something.If your homestead improvement exceeds $5,000 in cost, the contractor is required by law to deposit your payments in a construction account at a financial institution. Ask the contractor for written verification of the existence of the construction account. Monitor deposits and disbursements to subcontractors, laborers, and vendors. Access to the account record should be included as a requirement in your written construction contract.
A time to EVALUATE your jitters: |
viewtopic.php?p=1139732#p1139732
Re: Contractor took deposit but never did any work. What next?
You should have checked for the existence of the account before signing the contract and giving the contractor the deposit. The Texas Attorney General website says the information should have been in the contract. If it is not, that's a key sign you've been taken by a con artist and your money is likely long-gone. Your lawyer would have to track him down to get a civil case brought against him and you may not want to spend the time and resources to do so. Law enforcement might take this on, but even if your local prosecutors take on the case, they have to track him down, convict him, and manage to squeeze out some sort of restitution before you'd see any money.EnjoyIt wrote:There is nothing to check as he does not respond to my requests to talk with him.Mudpuppy wrote:Did you check the contractor's construction account, as required by Texas law according to https://www.texasattorneygeneral.gov/cp ... and-repair ?EnjoyIt wrote:A quick google search tells me that Texas does not have a licensing requirement for general contractors. Unless I am missing something.If your homestead improvement exceeds $5,000 in cost, the contractor is required by law to deposit your payments in a construction account at a financial institution. Ask the contractor for written verification of the existence of the construction account. Monitor deposits and disbursements to subcontractors, laborers, and vendors. Access to the account record should be included as a requirement in your written construction contract.
Sorry to say this, but the money may be entirely gone with no way to get it back. So it is best to start steeling yourself for being out all of the money. File this under "expensive lessons learned" and ALWAYS check for such information before entering in to a remodeling contract for greater than $5000 in the future.
Re: Contractor took deposit but never did any work. What next?
I have accepted that the money is gone a long time ago. Just wonder if it is worth throwing more money after bad to get justice.Mudpuppy wrote:You should have checked for the existence of the account before signing the contract and giving the contractor the deposit. The Texas Attorney General website says the information should have been in the contract. If it is not, that's a key sign you've been taken by a con artist and your money is likely long-gone. Your lawyer would have to track him down to get a civil case brought against him and you may not want to spend the time and resources to do so. Law enforcement might take this on, but even if your local prosecutors take on the case, they have to track him down, convict him, and manage to squeeze out some sort of restitution before you'd see any money.EnjoyIt wrote:There is nothing to check as he does not respond to my requests to talk with him.Mudpuppy wrote:Did you check the contractor's construction account, as required by Texas law according to https://www.texasattorneygeneral.gov/cp ... and-repair ?EnjoyIt wrote:A quick google search tells me that Texas does not have a licensing requirement for general contractors. Unless I am missing something.If your homestead improvement exceeds $5,000 in cost, the contractor is required by law to deposit your payments in a construction account at a financial institution. Ask the contractor for written verification of the existence of the construction account. Monitor deposits and disbursements to subcontractors, laborers, and vendors. Access to the account record should be included as a requirement in your written construction contract.
Sorry to say this, but the money may be entirely gone with no way to get it back. So it is best to start steeling yourself for being out all of the money. File this under "expensive lessons learned" and ALWAYS check for such information before entering in to a remodeling contract for greater than $5000 in the future.
A time to EVALUATE your jitters: |
viewtopic.php?p=1139732#p1139732
Re: Contractor took deposit but never did any work. What next?
That is a personal decision you'll have to make. I'd certainly cut my losses after spending a brief amount of time and money to see what my options are, such as talking with a lawyer and local law enforcement. Have you or your lawyer talked to the local police and/or prosecutors' office about this? They may have a fraud division that would be willing to at least keep the case open until the statute of limitations run out.EnjoyIt wrote:I have accepted that the money is gone a long time ago. Just wonder if it is worth throwing more money after bad to get justice.
Re: Contractor took deposit but never did any work. What next?
I just sent my lawyer all the info and asked some of the questions recommended here. Waiting on the response.Mudpuppy wrote:That is a personal decision you'll have to make. I'd certainly cut my losses after spending a brief amount of time and money to see what my options are, such as talking with a lawyer and local law enforcement. Have you or your lawyer talked to the local police and/or prosecutors' office about this? They may have a fraud division that would be willing to at least keep the case open until the statute of limitations run out.EnjoyIt wrote:I have accepted that the money is gone a long time ago. Just wonder if it is worth throwing more money after bad to get justice.
A time to EVALUATE your jitters: |
viewtopic.php?p=1139732#p1139732
-
- Posts: 5564
- Joined: Thu Aug 09, 2012 10:54 am
Re: Contractor took deposit but never did any work. What next?
If you truly think the money is gone then stop paying more to go after the person unless you think you can actually catch him to help others in the future.
It would be helpful to post the red flags or things you didn't check on before handing this person a 5 figure check. Were they the lowest bidder? Only bidder? Legitimate website? Local address? Licensed, insured, bonded? etc.
It would be helpful to post the red flags or things you didn't check on before handing this person a 5 figure check. Were they the lowest bidder? Only bidder? Legitimate website? Local address? Licensed, insured, bonded? etc.
- SmileyFace
- Posts: 9083
- Joined: Wed Feb 19, 2014 9:11 am
Re: Contractor took deposit but never did any work. What next?
I'm the type of person that likes justice so in my case, if I could afford it, I'd put more money into this knowing I will probably get nothing back in the pursuit of this criminal. I believe what you do next is a personal decision.
Re: Contractor took deposit but never did any work. What next?
Texas does license some contractors with sub-specialties (which could apply to your g.c.) and your municipality could have a licensing regime.EnjoyIt wrote:A quick google search tells me that Texas does not have a licensing requirement for general contractors. Unless I am missing something.
https://www.licensetobuild.com/state-re ... uirements/Texas does not license General contractors at the state level. However, many municipalities do require licenses. Check with local city/county requirements and regulations. Electrical, Plumbing, Mechanical, Asbestos abatement and other speciality trades require a state license.
If they ever registered their corporation, they could be listed here.
https://mycpa.cpa.state.tx.us/coa/
Did the company provide you with an invoice with an address when you wrote the check/gave you a bid?
I don't understand people who are willing to let a five-figure sum disappear without a fight. Any lawyer who does any work with corporations/construction law should have been familiar with these resources. I am not even from Texas and know most states have these resources.
"Don't trust everything you read on the Internet"- Abraham Lincoln
Re: Contractor took deposit but never did any work. What next?
Agree. This guy should be prosecuted. Unless he magically appears with a check for your money back.denovo wrote:
I don't understand people who are willing to let a five-figure sum disappear without a fight.
I’d trade it all for a little more |
-C Montgomery Burns
Re: Contractor took deposit but never did any work. What next?
He was recommended by two people. Apparently he used to be a real legitimate contractor in the area for over a decade. He was not the lowest bidder but around average to the 5 contractors I interviewed. My mistakes were to not check the address on the contract that was his, I did not check if he had a license, I did not make sure the cash went into any particular account, I trusted him at his word.barnaclebob wrote:If you truly think the money is gone then stop paying more to go after the person unless you think you can actually catch him to help others in the future.
It would be helpful to post the red flags or things you didn't check on before handing this person a 5 figure check. Were they the lowest bidder? Only bidder? Legitimate website? Local address? Licensed, insured, bonded? etc.
Although this was an expensive lesson I learned a lot from it.
A time to EVALUATE your jitters: |
viewtopic.php?p=1139732#p1139732
Re: Contractor took deposit but never did any work. What next?
His company address is registered to a UPS store address which is the same address on my contract with him.denovo wrote:Texas does license some contractors with sub-specialties (which could apply to your g.c.) and your municipality could have a licensing regime.EnjoyIt wrote:A quick google search tells me that Texas does not have a licensing requirement for general contractors. Unless I am missing something.
https://www.licensetobuild.com/state-re ... uirements/Texas does not license General contractors at the state level. However, many municipalities do require licenses. Check with local city/county requirements and regulations. Electrical, Plumbing, Mechanical, Asbestos abatement and other speciality trades require a state license.
If they ever registered their corporation, they could be listed here.
https://mycpa.cpa.state.tx.us/coa/
Did the company provide you with an invoice with an address when you wrote the check/gave you a bid?
I don't understand people who are willing to let a five-figure sum disappear without a fight. Any lawyer who does any work with corporations/construction law should have been familiar with these resources. I am not even from Texas and know most states have these resources.
A time to EVALUATE your jitters: |
viewtopic.php?p=1139732#p1139732