Suing General Contractor Who May Bankrupt - Faulkner Co, AR

[bwor]

This Is In Faulkner County, Arkansas.

My wife and I purchased a house in November of 2007. During the process, I created all of our contracts (reviewed by an attorney, a real estate agent, title company, and the underwriters at the bank) and made sure everything was spelled out plainly.

The contractor was progressing very slowly on getting certain tasks complete. In particular, there were two major tasks that we mutually agreed to do after closing. However, he has not completed either of these tasks (and with one, in a small attempt to complete, actually caused minor damage to the house).

Also within the contract (and by Arkansas law) there is a one years builder's warranty provided with the house. When he was actually returning calls he acknowledged some of the things that needed to be completed under the warranty. He never completed them.

He has not returned any calls since February. He has also let his contractor's license expire according to the state licensing board.

His company is listed registered in Arkansas as a incorporated business with the Secretary of State's office. My fear is that any lawsuit brought against him will just make him bankrupt his company without gaining anything.

So here are my next steps and questions:

1. I plan to sue in small claims. The maximum in Arkansas is $5,000. Our quotes to have the work done are much greater than this, but taking this to a higher civil court would cost more than what we could recover.

Question Here - Will the court accept the suit for the max of $5,000 knowing that we are not suing for full value (i.e. we will have to eat some of the cost)?

2. I fully expect, if the suit is successful (and it should be given the contracts he has signed), for him to bankrupt his company.

Question - Is it safe for me to assume that there will be no way to attach his name to the suit? I've seen lawsuits against companies before that list the company and the principles separate in the action, but do not know if this is a scenario that will work for me.

3. Are there any other actions anyone could suggest to explore? I thought about the BBB, but they can really do nothing other bring the complain to his attention. I have also thought about getting the media involved. Since he now owns a dining establishment here, I'm sure his information plastered in a negative light across the news would not be good.

By the way, this is not an isolated issue with this builder. He built the two homes next to ours. One home had minor issues in dealing with him, but another home has experienced many of the same things we have. I'm sure getting affidavits from anyone supporting our case would not be an issue, but think that might be overkill for small claims.

Thanks,
Brent

 

[presutin]

Will the court accept the suit for the max of $5,000 knowing that we are not suing for full value (i.e. we will have to eat some of the cost)?

Yes

Is it safe for me to assume that there will be no way to attach his name to the suit?

Consult with the law clerk on how to proceed

Are there any other actions anyone could suggest to explore?

You can denounce him to the contractors board and the attorney general.

Good Luck to you!

 

[bwor]

The builder actually finally managed (after 6 months) to return some form of communication, in this case, an email.

There are a couple of specific issues that he claims he is not responsible for, which I disagree with, as part of the contract.

#1: In the contract, I specified that touch up paint needs to be applied throughout the house. If you look a the touch-ups he did, the paint does not match. He claims that it would be impossible to match.

We've had a couple of painters come out and all have mentioned that it appears that there is only one coat of paint on the walls, just enough to cover the sheet rock. He is refusing to have additional coats applied.

So, if he applies touch-up paint, but it does not match the walls, is it considered complete? I would think not...

#2. I believe there may have been some settling on the foundation, which I would expect, but has caused issues with a small section of tile in one room. According to the contract he was to provide a warranty on the "electrical, mechanical, plumbing, environmental, and all improvements, structures, and components on or about the property." I'm curious to know if replacing the small section of tile would apply. If not, no big deal. The tile has not cracked, and I do not believe it will, just has a bit of a hollow sound (would like it fixed if possible, but not something worth chasing if it will not be done).

Further thoughts? These questions may be better suited for another forum, and if so, I'll take the thoughts over there. I'm just curious as to whether I have a claim to this or not.

Brent

 

[presutin]

Present all these items as evidence when you are in court since it enhances your case. From what you have described in your posting, you do have a case. Good luck to you!