Consumers in Indiana who hire contractors to repair or improve their homes want to know about Indiana’s Home Improvement Contract Act (HICA). The HICA statute requires all contractors doing business with consumers in Indiana to have written contracts.
In addition, the written contracts must contain certain information, such as accurate contact information for the contractor, start and finish dates for the project, the total project cost, and details about the work that is to be done. There are other requirements as well. A local attorney in Indiana would be able to provide a person with more information.
The HICA applies to any business that routinely provides real property repair or improvement, including labor and materials. It also applies to businesses that rent equipment to people who occupy residential property in Indiana where the value of the repair or improvement is greater than $150,000.
The act also applies to contractors from other states who travel to Indiana to work on residential properties in that state. For example, roofing contractors often travel from state to state to offer their services to homeowners whose properties have experienced damage in natural disasters. The HICA would apply to contractors when they work in Indiana.
Any contractor covered by the HICA who commits a violation has committed a deceptive act. The consumer may sue a contractor or supplier. In addition, the state Attorney General may sanction the contractor in an independent action of its own.
The remedies for which a consumer might sue a contractor who commits a deceptive act as defined by the HICA include the following:
- Injunctive relief;
- Rescission of their contract, which would require the contractor to return any money they received from the consumer;
- The contract could be voided in whole, or some of its provisions might be voided;
- The person could recover the value of their actual damages plus their attorney fees.
In addition, a person might sue for breach of contract. Another option would be suing for negligence for construction defects. An action for negligence in construction may allege that the contractor’s workmanship was poor or that their supervision, inspection, or design was deficient.
A negligence claim against a contractor may run into the economic loss doctrine in Indiana. The economic loss doctrine bars a person from recovering economic damages in a tort action, e.g., a claim for negligence. Therefore, the recovery of a person’s economic loss resulting from damages to a building is covered by contract law, not tort law.
However, where construction defects have caused damage to other property or personal injury, a cause of action for negligence and recovery of tort damages may be possible.
If there is an express warranty in a person’s contract, they might sue for breach of this warranty if a contractor’s performance is not as it was warranted to be. Also, Indiana law implies a warranty of habitability in contracts between a consumer and a residential construction contractor.
This implied warranty means that a residence should be “free from defects that would substantially impair the use and enjoyment of the home.” If a person’s home is not free from defects of this type after a contractor has worked on it, a person might sue for breach of the implied warranty of habitability.
The implied warranty of habitability does not apply only for the person who has the work done by a contractor. It extends to all subsequent owners who might purchase the dwelling. This is very advantageous for Indiana homeowners.
A person suing a contractor for poor workmanship might also claim negligent misrepresentation. In Indiana, both causes of action, i.e. one for intentional misrepresentation (fraud) and one for negligent misrepresentation, must be proven by “clear, cogent, and convincing evidence.” This is a higher standard of proof than that which applies in other civil actions. So winning a case for fraudulent misrepresentation might be challenging.
Can I Sue a Contractor Without a Contract?
If a person hires a contractor in Indiana to perform residential construction work for the person, the person has made a contract with the contractor. The contract may not be in writing, but a contract may be perfectly valid even if it is not in writing.
In Indiana, however, the law requires a written contract and further prescribes some of the content that the contract must contain. So if a person hired a contractor and does not have a written contract, they would want to contact the office of the Attorney General of Indiana.
The person still has a contract because contracts may be oral. Contracts do not even have to be expressed in words, orally, or in writing. They may be implied by circumstances or by the law, although that is unlikely in the situation in which a person hires a contractor.
So, even if a person does not have a written contract with their contractor, it is probably the case that they have an oral contract. That is because they talked about the project that the contractor was hired to complete, even though they did not express their understanding in writing. This is enough to create a valid oral contract.
It is important to note that when hiring a contractor, a person should insist on a written contract. A written contract is a legal requirement for contractors in Indiana, so a contractor should agree to this. As noted above, a legally adequate contract would specify the timelines for project completion, a description of the product the contractor must deliver, the schedule for payments, how progress is tied to payment and the like.
How Do I Sue for Breach of Contract?
A person can ask for up to $10,000 in a small claims action in the Indiana Circuit, Superior, and County Courts. A person may be represented by an attorney in small claims court in Indiana but does not have to have one. A person may represent themselves. This would save on the cost of suing.
If a person seeks more than $10,000 in damages in a lawsuit, they will file their complaint in an Indiana Circuit, Superior, or County Court but not in the small claims division. Whether the court is called a “Circuit Court,” “Superior Court,” or a “County Court” apparently depends on the county in which it is located. The only difference among them is their names, not their authority to hear civil lawsuits.
How Much Does It Cost to Sue a Contractor?
It is not possible to provide a firm figure in answer to this question. How much it would cost to sue a contractor is going to depend on a number of things. If a person files their complaint in an Indiana small claims court, they would not have to be represented by an attorney. This would reduce their cost of suing a contractor significantly. But they would be able to win only $10,000 in damages.
If a person sues the contractor in a Superior Court and has an attorney to represent them, the cost would depend on how much the attorney charges and how much time the attorney must devote to the case before it can be resolved. That is because an attorney is likely to charge an hourly fee for their service.
Reportedly, the average hourly rate for an Indiana lawyer is about $242 an hour. This is the average hourly rate. Some lawyers are going to charge more. So, a person can estimate the cost of a case. In addition to attorney’s fees, a person would have to pay court costs, e.g., the fee to file a complaint. There would also be other costs.
In a case about a construction project, a person might need to hire an expert witness to testify about how the contractor’s work is deficient. Expert witnesses have to be paid, so this would add to the cost.
What Is the Statute of Limitations for Contract Disputes?
The statute of limitations for breach of a written contract in Indiana is 10 years. Breach of the implied warranty of habitability is 6 years. A claim for negligence for construction defects has a 2-year statute of limitations.
This claim for breach of the implied warranty of habitability commences when a person knows or, in the exercise of ordinary diligence, could have known that a construction defect had injured a person. A lawsuit for fraud is subject to a 6-year statute of limitations.
Do I Need the Help of an Attorney to Sue a Contractor?
If you have received poor workmanship from a construction contractor, you want to talk to an Indiana contract lawyer as soon as possible. LegalMatch can connect you to an experienced lawyer quickly.
Your lawyer will be able to analyze the facts of your case and guide you to the best option for resolving your issues, whether that be through a lawsuit or submitting a complaint to the state’s Attorney General. An Indiana contract lawyer will help you protect your rights.
