Roofing contract. Did I sign a blank check?

[Bill Mee]

Jurisdiction

New Hampshire

Background: This is in New Hampshire. I saw water stains in my ceiling after a thunder storm. My roof was 22 years old. Since I was leaving for a trip overseas the next day, I called a bunch of roofing companies that showed up in Google, trying to get someone to come out that day and address the leaks. No one was available except this one guy, Diego (not the real name), a 5-star roofing contractor with 80+ reviews. He came and checked the roof and said there's wind damage to the roof and it's missing a shingle. Diego further stated that the my current roof uses 37-inch shingles and they were discontinued and cannot be repaired to code. He said that in a case like this he's helped several customers receive insurance coverage for the whole roof replacement, and the customers paid only deductible.

I said that sounds good, but can you just make it not leak? Then he said he can do that but he'd like to ensure that he'd get to do the rest of the roof, and wanted me to sign a contract. I said I wouldn't want to replace the whole roof if the insurance claim doesn't cover it. He said that's fine, he'll just do the work covered by the claim. I thought that sounds fair and could get my leaks addressed, so I decided to call my insurance to file a claim, and sign the contract.

The signed contract is attached. I have to admit I wasn't paying attention and basically just followed his direction to initial and sign. In the attachment, I cover all the personal/business info. The small gray boxes cover either Diego's or my initial. No covered boxes are dollar amount. The only dollar amount in the contract is the $1 in a couple of places which are not covered.

I paid him the $1 and then he started covering the damaged roof temporarily. I wasn't watching when he did his work. I checked his work after he left and found that the portion he covered was nowhere near the area right above the water stains in my ceiling. I immediately texted Diego for an explanation. He didn't reply. But it's already 8pm and I could understand why he didn't.

First thing the next morning, before I boarded my flight to a foreign country, I texted Diego (before I lose my texting during the flight), asking him to return to cover the portion of the roof right above the water stains. When I landed 6 hours later, I got his text saying that it's covered well and there should be no leaks. I was quite upset by his non-answer and I was thinking how I could back out of the contract and seek other help. So I asked my kid to text me a copy of the contract I signed. After reviewing it closely, I think I am on the hook for the whole roof job even if my claim is rejected by the insurance, and I will be on the hook for whatever amount Diego is going to charge me for the whole roof replacement.

My questions to all the gurus in this forum:
1. Is the situation as dire as I read it?
2. Are there holes in the contract that I could use to get out of it?
3. If I can't get out of it completely, how can I remedy the situation to make it less harmful?
4. Under 'customer information', there is the claim number. If I withdraw the claim, would that void the contract?

Thanks!

 

[army judge]

1. Is the situation as dire as I read it?
2. Are there holes in the contract that I could use to get out of it?
3. If I can't get out of it completely, how can I remedy the situation to make it less harmful?
4. Under 'customer information', there is the claim number. If I withdraw the claim, would that void the contract?

1. There may be a very easy way out of what you believe to be a "contract".



Look at the area I've circled in purple.

The case could be made that you only owe the contractor $1.00 for all work completed.

 

[Bill Mee]

Thanks @army judge for your reply. By the way you phrased it, I sensed that you thought the contract was badly written and perhaps not executable. Is that an accurate description of your impression? Thanks again!

 

[Zigner]

Thanks @army judge for your reply. By the way you phrased it, I sensed that you thought the contract was badly written and perhaps not executable. Is that an accurate description of your impression? Thanks again!

The point was that you and the contractor agreed on a price of $1 for the work listed in the contract.

 

[army judge]

The point was that you and the contractor agreed on a price of $1 for the work listed in the contract.

Every now and then, we stumble out of trap, and hit a lucky "jackpot"!

 

[Bill Mee]

The point was that you and the contractor agreed on a price of $1 for the work listed in the contract.

Yes, I got that part. That's why I was asking if it's a 'bad' contract objectively.

Just an update on the situation: The contractor did cover up the problem area after my insistence.

Now my follow-up questions:
1. How should I play this $1 roof replacement deal? I don't expect that to ever happen in reality. I should just use that to let Diego know that he doesn't get the job of my roof replacement automatically (as he tried to use this contract for) and have the contract voided. Is there anything else I should watch out for?
2. My insurance policy stated that it'd generally cover the cost to restore the property to its pre-loss form. That to me means there is no way they'd pay for the roof replacement. Or could the policy actually cover the replacement because the roof couldn't be restored to its pre-loss form due to lack of matching shingles?
3. For my future reference: Lawyers of which specialty should I contact for reviewing this type of contracts?

All advice would be appreciated!

 

[welkin]

1. How should I play this $1 roof replacement deal? I don't expect that to ever happen in reality. I should just use that to let Diego know that he doesn't get the job of my roof replacement automatically (as he tried to use this contract for) and have the contract voided. Is there anything else I should watch out for?

What you should do is ask the contractor for a proper contract. One that is for repairing the roof and one that is for replacing the roof. A contract that is properly filled out and signed by both of you under New Hampshire business and contract law. You make your best argument to the insurance company for replacement and take what you get.

The contract you posted is not an enforceable contract and I don't understand why the roofer would have done what he did. If the roofer were to fix or replace your roof and you only pay him a dollar (according to that contract) you would be sued for unjust enrichment.

Just an update on the situation: The contractor did cover up the problem area after my insistence.

You already owe him more than a dollar.

 

[Bill Mee]

The contract you posted is not an enforceable contract...

Thank you for your reply, @welkin. Could you please elaborate on why the contract is not enforceable? Certainly, the $1 part is a mistake. Does that mistake alone make it unenforceable? Or are there other things in it that make it so?

 

[Zigner]

Thank you for your reply, @welkin. Could you please elaborate on why the contract is not enforceable? Certainly, the $1 part is a mistake. Does that mistake alone make it unenforceable? Or are there other things in it that make it so?

The $1 is a crucial part of the contract. If it's a mistake, then the contract is unenforceable as written. Of course, a court would likely apply the concept of quantum merit which means, in a nutshell, that the contractor should be paid for the work that was done, but the court will decide an appropriate amount (if it's asked to).

 

[army judge]

Certainly, the $1 part is a mistake. Does that mistake alone make it unenforceable?

Courts GENERALLY dislike having to decide what the parties to a contract agreed upon within the four walls of the contract.

That said, based solely upon my reading of the contract, I'd acknowledge and accept the written words and the signatures affixed to the document.

That said, if you're happy with whatever work the contractor accomplished, I'd place MY PRICE on the work's value.

I'd ask the contractor to place his price on the work he accomplished, and in an effort to be fair, I'd point out the $1.00 price that he wrote on the contract, and let him know that it was simply a mistake on his part, one that I'm overlooking.

 

[welkin]

I'd ask the contractor to place his price on the work he accomplished, and in an effort to be fair, I'd point out the $1.00 price that he wrote on the contract, and let him know that it was simply a mistake on his part, one that I'm overlooking.

I think that what happened here is that the contractor did not know the scope of work based on what the insurance company would approve. The contract says, on the first line as such, all work to be completed according to insurance scope.

The contractor just wrote $1.00 in consideration to make it a somewhat valid contract with the actual consideration to be determined later once the insurance company approved the work.

 

[Bill Mee]

Thank you guys for all your inputs.

I just want to make it clear that I would definitely pay Diego for whatever job he's done to my roof up to this point. I am not going to hold him to that $1 in the contract.

I think the $1 thingy is such a glaring issue that it overshadows two of my original questions:

1. Are there other holes in the contract that would give me an out? The $1 is certainly one, but in this case, the more, the merrier, I guess.
2. Since the contract hinges on my insurance claim, would the contract be voided if I withdraw my claim, say, when the adjuster says the cost of repair is lower than my deductible?

Once again, thanks all for your past and future inputs.

 

[army judge]

Thank you guys for all your inputs.

I just want to make it clear that I would definitely pay Diego for whatever job he's done to my roof up to this point. I am not going to hold him to that $1 in the contract.

No one can say for certain what will occur as this issue plays itself to the end.

My GUESS is that once your insurance adjuster has issued her edict, you, the roofer, and the insurer will be pleased.

This one's looking like a winner, winner, winner!!!