When an individual hires a contractor for things such as home repairs, the majority of contractors and homeowners will sign a legal contract outlining the terms and conditions of their arrangement, which typically includes:
- A description and clarification of the exact work that is supposed to be completed;
- The amount of money that will be paid for the work that is to be completed;
- A deadline when all work should be completed.
It is most common for a lawsuit to be filed against a contractor when the contractor fails to follow the contract. Common examples of issues that arise include missing a deadline or failing to perform all of the work required under the contract.
Other common examples of reasons lawsuits are filed against contractors include:
- The contractor completes the job, but not in a satisfactory manner;
- The contractor completes the job, but the work violates safety standards or local zoning ordinances;
- The contractor took advantage of the homeowner;
- This may occur by accepting a payment from the homeowner but failing to complete the agreed-upon work;
- The contractor overcharges, resulting in a breach of contract claim.
If an individual enters into a contract with a contractor who failed to meet their obligations or performed disappointing work, it may justify a legal claim being filed against them. A lawsuit that is filed by a homeowner against a contractor will typically be filed in a civil court.
What Are Some Legal Claims That Can Be Filed Against a Contractor?
There are several different types of legal claims that homeowners may be able to file against contractors. One of the more common types of claims is a breach of contract claim.
Breach of Contract
A breach of contract claim arises when one of the parties does not fulfill the obligations under their part of the contract. This may occur when a party does not deliver on their claim within the right amount of time or if they fail to perform at all.
Contractors can be found liable for breach of contract when they:
- Miss deadlines;
- Do not begin projects;
- Partially complete projects;
- Do not use the construction materials that were agreed upon under the contract.
There are four categories of breach of contract that may occur, including:
- Minor breach: A minor breach, also called an impartial breach, occurs when a party fails to perform part of the contract but does not violate the entire contract;
- Material breach: A material breach occurs when the breach is so substantial that it affects the contract as a whole;
- Additionally, the core purpose of the agreement must be rendered completely defeated by the breach, which is sometimes referred to as a total breach;
- Fundamental breach: A fundamental breach is considered to be much more egregious when compared to a material breach;
- Anticipatory breach: An anticipatory breach, also called anticipatory repudiation, is a breach that occurs when one party notifies the other that they will not be able to fulfill the terms of their contract as agreed to.
A breach of contract claim, in general, allows a homeowner to recover damages, for example, a refund of the payments that they made to the contractor. In the alternative, a homeowner may receive a refund for the difference in the cost that is associated with hiring a new contractor to complete their contract.
Contract Fraud
Another common type of claim is a contract fraud claim. This type of claim arises when one of the parties knowingly makes a false claim with the intent of tricking or deceiving another party into signing the contract.
A homeowner can sue a contractor for fraud if that contractor tells the homeowner that the completed project will appear one way, but the result is obviously different from the expectations that were provided. Another example would be if the contractor stated they would only use specific high-grade materials. However, they used lower quality and less costly materials after the payment for the original materials was accepted.
Defective Construction Work
A construction defect is a defect that reduces the value of a home, resulting in a defective construction work claim. Issues that may result in a defective construction work claim include, but are not limited to:
- Design deficiencies: This may include things such as the roof not being built to code, which can result in water intrusion or inadequate support;
- Material deficiencies: This may include things such as inferior sheetrock in known damp areas;
- Construction deficiencies: These result from poor workmanship, such as plumbing and electrical issues;
- Subsurface deficiencies: This may include things such as a home being built on hills or other unstable conditions without any mitigating measures being taken.
Can I Sue a Contractor Without a Contract?
When an individual is having work done on their home, it is always important to have a written contract. If, however, there was not a written contract for the services that were expected or provided, a homeowner can still sue or be sued by their contractor.
The reason that a homeowner could still sue a contractor without a written contract is based on an argument that an oral contract was formed. One example of this would be if a homeowner hired a contractor to paint their whole home, but the contractor only painted 80% of the home.
An individual may be able to have a court enforce the oral contract by requiring the contractor to partially refund the homeowner or having the contractor cover the cost of having the job completed by another party. In general, the party bringing the lawsuit has the burden of showing evidence of the agreement to perform the service.
How Do I Sue for Breach of Contract?
Before filing a breach of contract claim, it is essential to review a contract for any clause that states whether or not a lawsuit may be brought. For example, the contract may contain a requirement for mediation or arbitration to be used for dispute resolution.
A contract may also place a time limit or outline specific procedures that must be followed before a lawsuit can be filed. It is important to determine if there are certain elements that can be proven, including:
- That the plaintiff entered into an actual contract and that the contract is considered to be valid according to state contract laws;
- That the plaintiff upheld their end of the contract despite the other party not upholding their part;
- That the breach amounted to a substantial or material violation of the terms of the contract;
- It is important to note that minor or technical errors in a contract will not generally qualify for breach of contract claims; and
- That the losses the plaintiff suffered were, in fact, caused by the breach and can be calculated with a reasonable degree of certainty into a monetary damages award.
For more information on ensuring these factors are present, it is important to consult with a local attorney in Texas. After that, the attorney will handle filing the lawsuit for breach of contract in the correct court.
How Much Does It Cost to Sue a Contractor?
The cost of suing a contractor will vary greatly depending upon the amount of the claim. For example, a homeowner could be suing a contractor for poor workmanship on a small job, such as a cheaper component than what was agreed to be used in a kitchen. In that case, an individual may be able to file their claim in small claims court.
Filing a lawsuit in civil court can cost substantially more, especially with legal representation. Suing a contractor can be a very complicated issue and will likely be overwhelming to someone with no legal training and who is not familiar with construction and building code issues.
What Is the Statute of Limitations for Contract Disputes?
Each state has its own statutes of limitations for both civil wrongs, including suing a contractor. The following are examples of the statute of limitations by state for written contracts:
- Alabama: 6 years
- California: 4 years
- Indiana: 10 years
- Maryland: 3 years
- New York: 6 years
- Texas: 4 years
Do I Need an Attorney for Suing a Contractor?
If you believe you may need to sue your Texas contractor, it is essential to consult with a Texas contract lawyer for more information. Your lawyer can advise you of your legal rights and options under Texas laws.
Suing a contractor can be intimidating and overwhelming. Having an attorney handle your case will help ensure that your rights are protected and you receive the best possible outcome.
