In Iowa, construction contracts for the construction of new residential dwellings contain an implied warranty that the structure is to be built in a reasonably good and workmanlike manner. There is also an implied warranty to the effect that It must also be “reasonably fit for the intended purpose.”
However, again, these warranties are only implied by Iowa law in contracts for the sale of newly constructed residential dwellings when they are sold by the contractors who built them. They would not be implied in contracts for other home construction projects, e.g., roof replacement, additions, or renovations.
In cases involving projects such as these, a person would be able to sue a contractor on such traditional grounds as breach of contract. A local attorney in Iowa would be able to give a person more information about the approaches discussed below.
What Are Some Legal Claims That Can Be Filed Against a Contractor?
A residential homeowner’s claims against contractors may be based on several different legal theories or causes of action, including the following:
- Breach of Contract: This would be the claim that most people would make in a lawsuit against a construction contractor. The homeowner would claim that they had a contract with a contractor that promised a certain performance on their part in the contract. The contractor breached the contract by delivering a performance that was unworkmanlike and substandard, and the homeowner suffered economic loss because of the breach;
- Breach of Express Warranty: This claim would only be possible in the event of a contract between the homeowner and the contractor. The homeowner would have to prove that the contractor failed to perform as provided in the express warranty and that the homeowner suffered economic losses as a direct result of the breach of the warranty;
- Breach of Implied Warranty: In order to prove a breach of an implied warranty in Iowa, a homeowner would have to prove the following:
- The house was constructed to be occupied as a residence;
- The house was purchased from a builder-vendor, who had built it for the purpose of sale;
- At the time of sale, the residence was not reasonably fit for its intended purpose or had not been constructed in a good and workmanlike manner;
- At the time of sale, the buyer was unaware of the deficiency in the construction and had no reasonable means of discovering it;
- Because of the deficient condition, the buyer suffered damages.
A “builder-vendor” is defined by Iowa law as an entity that is in the business of building or assembling residential dwellings designed to be sold as residences on land owned by the contractor, who then sells the houses with the plots of land on which they are situated to members of the public;
- Negligence: A person may make a claim against a contractor for negligence for construction defects. However, the economic loss doctrine means that a property owner may not recover damages for negligence if they have suffered only economic loss. In order to recover damages on the basis of negligence, the owner must have suffered personal injury or damage to other property caused by the defects in the construction;
- Strict Liability: For various reasons, a claim for the tort of strict product liability is not going to be an option in the majority of claims brought by a homeowner against a construction contractor;
- Fraudulent Misrepresentation: General contractors may be sued for negligent misrepresentation as well as intentional fraudulent misrepresentation. A homeowner has to prove intentional fraudulent misrepresentation by clear and convincing evidence, which is a more challenging standard of proof than that which applies in most civil cases.
A person would have to prove the following elements of intentional fraud:
- Made a false representation, and the representation was material;
- The contractor knew the representation was false;
- The false representation was made with the intent to deceive;
- The homeowner relied on the representation justifiably;
- The representation was the direct cause of damage to the homeowner;
- The homeowner suffered measurable damages.
Can I Sue a Contractor Without a Contract?
If a person hires a contractor in Iowa 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 and enforceable, even if it is not in writing.
The person still has a contract, because contracts may be oral. Contracts do not even have to be put into words, either orally, or on paper. Contracts may even be implied from circumstances, although that is not likely when a person hires a contractor.
However, even if a person does not have a written contract signed by their contractor, they have a contract that is oral. That is because they talked about the project with the contractor, even though they did not put their agreement into words on paper. This is enough to create a valid oral contract.
Again, however, as noted above, a person wants to be sure to have a written contract for a construction project contract. Having one makes it much easier to prove that there is a contract and what its provisions are in case there is a dispute.
How Do I Sue for Breach of Contract?
In Iowa, a person can sue for up to $6,500 in damages in the Small Claims Division of the District Courts. Because a person may represent themselves in small claims courts, it is a good option as a less expensive way to file a lawsuit. Both the rules of civil procedure and the rules of evidence are simplified in small claims court to help people who represent themselves and do not have an attorney.
If a person seeks more than $6,500 in damages in their lawsuit, they will file their complaint in an Iowa District Court. There is one in every county in Iowa.
In both the small claims division and in regular district court, a person would prepare a complaint, the legal document that a person files with the clerk of a court in order to initiate a lawsuit. A copy must be “served,” or hand-delivered, to the person who is being sued, the “defendant” in legal terminology.
Usually, court rules of procedure give the defendant 30 days to file their answer and a counterclaim if they have one. Once the complaint and answer have been filed, the lawsuit is underway.
How Much Does It Cost to Sue a Contractor?
It is not possible to provide a specific number to answer this question. How much it would cost to sue a contractor will depend on a number of elements, e.g., how much the attorney charges for their services.
If a person files their complaint in a Iowa small claims court, they would not have to be represented by an attorney. This would reduce the cost of suing a contractor significantly. But they would be able to win only $6,500 in damages.
If a person sues the contractor in a Kentucky district court and has an attorney to represent them, the cost would depend on how much the attorney charges and how much time the attorney spends working on the case before it comes to an end. That is because an attorney is likely to charge an hourly fee for their service.
Reportedly, the average hourly rate for an Iowa lawyer is about $202 an hour. This is the average hourly rate. Some lawyers are going to charge more. A person may estimate the cost of a case, and they should ask their lawyer for an estimate of the total cost. In addition to attorney’s fees, a person would have to pay court costs, e.g., the fee to file a complaint. There would be other costs as well.
When suing a contractor for poor workmanship, a person would probably need an expert witness to testify about the contractor’s deficient work. Expert witnesses have to be paid, so this would add to the cost.
What Is the Statute of Limitations for Contract Disputes?
The type of construction defect case determines the amount of time a person has to initiate a lawsuit. This is a deadline known as the “statute of limitations.” The statute of limitations says that a person has only a certain number of years to file a lawsuit after they discover, or should have discovered, the defect in their construction project.
The statute of limitations In Iowa for breach of an oral contract is 5 years. The statute of limitations for a written contract is 10 years. The limitation period begins to run when the contract is breached, not when the damage results or is discovered.
The Iowa statute of limitations for actions for personal injury is 2 years, and for actions for property damage or fraud, it is 5 years.
Iowa has a 10-year statute of repose that applies to several kinds of construction claims, specifically negligence, implied warranty, and strict liability claims.
The important message with regard to statutes of limitations and statutes of repose is that a person should not delay in talking to a lawyer if they discover defects or shoddy workmanship in a construction project on their property. It is important to act promptly.
Do I Need an Attorney for Suing a Contractor?
If you have a significant dispute with a construction contractor, you want to talk to an Iowa contract lawyer in your area. LegalMatch.com can quickly connect you to an experienced lawyer who can guide you through the complexity of the law that may apply to a construction dispute. Your lawyer can analyze the facts of your case and tell you the best way forward to getting the remedy you deserve.
