Contractor Did Not List His Legal Business Name On Contract. Is The Contract Enforceable?

[MustangGuy347]

Jurisdiction

Pennsylvania

Hopefully someone here can shed some light on this matter for me. Long story short, I entered into a contract with a general contractor for the construction of my new home. I have been moved into the home but there are multiple problems with the construction. These defects have been verified by third party inspectors. Despite the third party reports, my general contractor refuses to fix the problems.

My contract states that any disputes must go to binding arbitration through the AAA. This can be an expensive process and it's my understanding that I am unable to recover my legal costs in a judgement.

I was reviewing the contract and doing some research on the contractor and came across the following:

• The general contractor has an LLC. Let's say his legal business name is Smith Homes, LLC.
  
  
• He has also registered a fictitious, or DBA, name with the state called Smith Homes.
  
  
• My construction contract has his business logo in the top left corner. The logo only states the DBA name, Smith Homes.
  
  
• In the top right corner of the contract it does list his state registration number.
  
  
• The contract states the following: "This contract made on 5th day of March 2018, by and between John Doe (my name) hereinafter called the owner and Smith Homes hereinafter called the contractor.
  
  
• The signature line on the bottom simply states "Contractor" and then a place for the general contractor to sign.
  
  
• Nowhere on the contract does it list the full legal name of the contractors business, Smith Homes, LLC.
  

From my research, the DBA name can enter a contract if it is noted that it is a DBA of the legal company name when the parties are introduced at the beginning of the contract. You might write, for example, "Smith Homes, LLC, d/b/a Smith Homes."

With all of that said, is this contract enforceable since the legal name of the contractor's business was not stated in the contract? Also, since the contractor signed his name at the bottom of the document, could he be personally liable in a lawsuit?

Thank you all in advance!

 

[mightymoose]

With all of that said, is this contract enforceable since the legal name of the contractor's business was not stated in the contract?

Yes.

 

[Zigner]

Also, since the contractor signed his name at the bottom of the document, could he be personally liable in a lawsuit?

Not based solely on his signature on the contract. You may be able to find other ways to attach personal liability.

 

[zddoodah]

it's my understanding that I am unable to recover my legal costs in a judgement.

Why do you believe this? Construction contracts typically provide that the prevailing party can recover his/her/its reasonable attorneys' fees in the event of litigation (including arbitration). Does your contract not contain such a provision?

• The general contractor has an LLC. Let's say his legal business name is Smith Homes, LLC.

• He has also registered a fictitious, or DBA, name with the state called Smith Homes.

• My construction contract has his business logo in the top left corner. The logo only states the DBA name, Smith Homes.

When you refer to "the general contractor," it sounds like you're referring to an individual. However, it sounds like the LLC is the general contractor. Also, notwithstanding the registration of a fictitious business name, "Smith Homes" is not really a fictitious business name for "Smith Homes, LLC." Business entities often drop the "LLC" or "Inc." when marketing themselves.

From my research, the DBA name can enter a contract if it is noted that it is a DBA of the legal company name when the parties are introduced at the beginning of the contract.

That doesn't make a lot of sense. A "name" cannot enter into a contract. Only natural persons and legal entities can enter into a contract. As you've described it, your contract is clearly between you and "Smith Homes, LLC" (and, as noted above, I wouldn't even say, "Smith Homes, LLC dba Smith Homes," but there would be no harm in using that in your arbitration papers.

With all of that said, is this contract enforceable since the legal name of the contractor's business was not stated in the contract?

The name issue you described (to the extent it is an issue at all) will not render your contract unenforceable.

Also, since the contractor signed his name at the bottom of the document, could he be personally liable in a lawsuit?

The individual who signed on behalf of the contractor almost certainly will not have personal liability, and you've provided no information that would support the possible existence of personal liability.