If a person believes that a contractor has done substandard work on their residence, they may sue the contractor for damages to remedy their loss. A person may be dissatisfied because the contractor failed to finish the work, did the work in a substandard manner, or left defects in the project. Payment structures, change orders, and the beginning and end dates for projects are often the subject of disputes between homeowners and construction contractors.
If a person plans to sue a contractor, hopefully, the person has a written contract for the project. While it is not required by law in Kentucky, it is best practice to have a written contract. A local attorney in Kentucky would be able to draft one for the homeowner. If your contractor provides one, it would be best to have a local attorney review it to make sure it is fair to the homeowner’s interests.
It does cost money to have a lawyer draft or review a contract, but it could save a person money in the long run if a significant dispute develops.
Experts recommend that a construction project contain at least the following provisions:
- The contractor’s name, address, license number, and reliable contact information;
- The homeowner’s name, address, and phone number;
- A clear statement of the total cost of the project and the payment terms for both material and labor. Experts advise against making large advance payments. Setting a schedule with payments made based on the percentage of work done is better. The final payment would be made only after the entire project has been completed to the homeowner’s satisfaction;
- A complete description of the work that is to be performed;
- Specifications of the type of materials to be used, including size, weight, quantity, and color of each material;
- A provision that requires the owner’s written approval for changes to the plan and/or specifications;
- A requirement that the contractor obtain workmen’s compensation and public liability insurance. This protects the owner from liability if the contractor’s employees or private citizens are injured during work on the project;
- A requirement that the contractor obtain all necessary building and zoning permits;
- The starting date and approximate end date;
- A statement as to who is responsible for cleaning up the premises after the project is finished.
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;
- Negligence for Construction Defects: Kentucky courts recognize a cause of action for negligent construction under traditional product liability theories
- Breach of Express Warranty: A cause of action for breach of an express warranty would be possible only if the parties have a contract that contains an express warranty;
- Breach of Implied Warranty: Kentucky law may imply a few different warranties in contracts regarding construction projects. A common law implied warranty of habitability exists in the sale of a new dwelling by a builder, and the major structural features are impliedly warranted to be constructed in a workmanlike manner using suitable materials. However, an action based on this common law warranty may only be brought by the original purchaser of the dwelling;
- Strict liability: Kentucky has a statute that provides a cause of action to any party who suffers damage as a result of a violation of a building code. If a person is successful in such an action, they might be awarded damages as well as reasonable attorney’s fees. Such action must be brought within 1 year of when the damage is discovered or should have been discovered, but no more than 10 years after the date of first occupation or settlement;
- Fraudulent Misrepresentation: Actions for intentional and negligent misrepresentation are possible in Kentucky. A person must prove intentional fraud by clear and convincing evidence, which is a higher standard than that applied in most civil actions.
Can I Sue a Contractor Without a Contract?
If a person hires a contractor in Kentucky 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. 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?
A person can ask for up to $2,500 in a small claims action in the small claims division of a Kentucky district court. 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 reduce the cost of suing.
If a person seeks more than $2,500 in damages in their lawsuit, they will file their complaint in a Kentucky district court but not in the small claims division.
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 the 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 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 in answer to 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 Kentucky 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 $2,500 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 a Kentucky lawyer is about $204 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 Construction 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. Some statutes of limitations are as follows:
- 10 years for contracts, 5 years if the contract is not in writing;
- 1 year for negligence;
- 2 years for property damage;
- 1 year after discovery of the damage (or when it should have been discovered) for a strict liability action.
The only statute of repose that exists in Kentucky law would not apply in a construction case.
The important message with regard to statutes of limitations 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 a Kentucky 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.
