If a contractor in Tennessee causes another party or person to suffer physical or economic damages, then they may be held civilly liable for such actions. In the state of Tennessee, most contractors are often sued when they fail to follow the terms of a services agreement or contract.
For instance, if a contractor fails to perform all of the work they promised to perform under the terms of a contract, such as missing deadlines stated in a contract, then they may be sued for breaching said contract. Other common examples of when you can sue a contractor in Tennessee include if the contractor:
- Completes a job but completes it unsatisfactorily;
- Completes a job, but their work violates safety standards or local zoning ordinances that they must follow when performing their service(s);
- Accepts a deposit or payment from you but then fails to complete or only partially completes the agreed-upon services; and/or
- Overcharges you, such as by asking for money for specific materials and then using inferior or cheaper materials.
As such, when hiring a contractor, such as for performing home improvements, it is important to thoroughly review any legal contract executed between yourself and the contractor. The services agreement or contract should typically be defined and discuss certain terms and conditions, such as:
- A description of the exact services that are to be performed;
- A description of the amount of money that is to be paid for the work performed, including the time in which said money will be paid, such as in installments or in a lump sum;
- A time frame of any and all deadlines that determine when all obligations under the terms of the contract are to be completed;
- An outline of anything that will be determined to be a breach of the service contract and the penalties for such breaches occurring.
It is important to note that if a contractor violates the terms of a service agreement, they may then be sued in civil court. Generally speaking, most claims brought against contractors will be breach of contract lawsuits. However, there are also other legal claims that may be filed against a contractor.
What Are Some Legal Claims That Can Be Filed Against a Contractor?
As mentioned above, the most common legal claim that is filed against a contractor in Tennessee is a breach of contract claim. A breach of contract occurs when one party fails to follow through with their side of a contract, such as when one party fails to deliver their obligations under the terms of the contract within an appropriate amount of time, or fails to perform their contract obligations at all.
In general, there are four types of breaches that may occur under the breach of contract umbrella:
- Minor Breach: A minor breach occurs when one party fails to perform part of the contract, but does not violate the entire contract which may result in them being sued for the cost to finish the work;
- Material Breach: A material breach occurs when one party’s breach substantially impairs the contract as a whole. This breach completely defeats the core purpose of the agreement;
- Fundamental Breach: A fundamental breach is a more egregious breach than a material breach, such as failing to perform duties and actually causing additional damages;
- Anticipatory Breach: An anticipatory breach is a breach that occurs when one party notifies the other that they will not be fulfilling their obligations under the terms of the agreed upon contract, such as a contractor accepting the terms of the contract, but then indicating that they will not perform under the current terms of the agreement.
Examples of other common legal claims that a homeowner may file against a contractor in Tennessee include:
- Contract Fraud Claims: Contract fraud occurs when one party knowingly makes a false claim with the intent to trick or deceive the other party into signing a contract, such as by telling a homeowner that the completed project would look one way, but the result is completely different from the expectations that were set;
- Defective Construction Work Claim: Construction defects refers to work that is performed by a contractor that reduces the value of a home, which includes:
- Design deficiencies, such as roof work not being completed in accordance with building codes, resulting in water intrusion or inadequate support;
- Material deficiencies, such as utilizing inferior materials that cannot be used for their state purpose;
- Construction deficiencies that result from poor workmanship, such as failing to properly install plumbing or electrical;
- Subsurface deficiencies in the home, such as building the home on an unsafe landscape or other unstable conditions.
In addition to all of the above, a contractor may also be sued if they cause you a personal injury. In other words, if their negligence leads to you being physically or economically injured, then you may bring a personal injury claim against them based on their negligent action or inaction.
Can I Sue a Contractor Without a Contract?
Although most civil lawsuits against contractors are based on a breach of contract, you may still sue a contractor without a written contract. One reason that you may still sue a contractor without a written contract is that you could argue that an implied or oral contract was formed as a result of performance.
For example, if you hire a contractor to paint your entire house, but they only paint a portion of your house, then you may be able to demonstrate through your payments and the contractor performance that an oral contract was formed.
If you are able to prove the existence of an oral contract, then you could have a court enforce your oral contract by having the contractor either partially refund you or by having them cover the costs of having the work completed by another contractor. However, it is important to note that the person who is bringing the civil lawsuit will have the burden of proving the formation of an oral contract.
How Do I Sue for Breach of Contract?
In order to sue a contractor in Tennessee for a breach of contract, you as the plaintiff (i.e., the party that is alleging they suffered harm) must demonstrate all of the following:
- First, that there was a legally enforceable contract. You must first demonstrate that a valid and enforceable contract was entered into between you and the contractor, which requires that there was:
- An offer made by one party to the other;
- Acceptance of the offer made by one party to the other;
- Consideration was paid, such as performing services or making a payment.
- Second, it must be demonstrated that a breach of contract occurred. In order to establish a breach, you must demonstrate that the terms of the contract were violated, such as by the contractor failing to fulfill their contractual obligations;
- Lastly, you suffered economic damages. Finally you must demonstrate that you suffered actual financial harm as a result of the breach, such as by you being forced to have to hire another contractor to remedy the contractor’s breach, etc.
How Much Does It Cost to Sue a Contractor?
In short, it depends on a variety of different factors. The total cost of suing a contractor for poor workmanship in Tennessee will vary based on several factors, including:
- The total cost of your attorney and their related attorney fees, should you choose to hire an attorney to pursue a civil claim in civil court
- Attorney fees will vary based on experience, location, the complexity of your case, and the time spent on your case, to name a few;
- Whether or not your case may be resolved in small claims court, which is known as General Sessions Court in Tennessee;
- Whether or not you are able to negotiate a settlement with the contractor and avoid filing a civil lawsuit.
Additionally, in Tennessee, you can initiate a legal complaint against a contractor with the Tennessee Board for Licensing Contractors. The Tennessee Board for Licensing Contractors is the agency responsible for handling issues related to licensed contractors and home improvement service providers.
What Is the Statute of Limitations for Contract Disputes?
In the state of Tennessee, you must commence any legal claim against a contractor by a specified deadline if you discover a defect in that contractor’s work. These deadlines are known as a statute of limitations.
For personal injuries that are caused by a contractor’s negligence, you must commence any legal claim within one year after the cause of action accrues. For injuries to your property, your claim must be brought within three years after the cause of action accrues. Breach of contract claims must be brought within six years.
It is important to note that the clock for filing a civil lawsuit against a contractor begins to run on the day on which the alleged property damage occurred or the defect is discovered. A local attorney in Tennessee will be able to ensure that you meet the statute of limitations for pursuing your case against a contractor.
Do I Need an Attorney for Suing a Contractor?
If you believe that a contractor has breached the terms of their service contract with you, or if you have suffered any economic harm as a result of a contractor’s actions or inaction, then it is in your best interests to consult an experienced Tennessee contract lawyer.
LegalMatch can assist you in finding an experienced contract lawyer in your area and setting up an initial consultation with them. An experienced contract lawyer can inform you of your legal rights and options according to Tennessee’s specific laws regarding contractors.
Additionally, a contract lawyer will also be able to help you determine whether or not you have a successful legal claim against the contractor. If so, a lawyer will be able to help you initiate a civil lawsuit against the contractor that caused you damages, as well as represent you in court, as needed.
