How to Sue a Contractor in Utah

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 When Can I Sue a Contractor in Utah?

Utah law recognizes that construction contractors generally have a duty to perform in a way that satisfies the specifications of their project. They are obligated to perform in a manner that is workmanlike. A contractor is legally required to follow the specifications for a project.

A Utah court has stated that if construction is to be considered of good and workmanlike quality, it does not have to be perfect. Rather, it has to be of the quality that a workman who has average skill and is a conscientious worker would usually provide.

If a homeowner believes that the workmanship they received from their contractor is not “good and workmanlike” and of at least average quality, they may seek a remedy through legal action.

What Are Some Legal Claims That Can Be Filed Against a Contractor?

When a residential homeowner wishes to sue a contractor, their claims may be based on several different legal theories or causes of action, including the following:

  • Breach of Contract: If a homeowner has a contract with a construction contractor and the contractor fails to perform as promised in the contract, this is a breach of contract. The homeowner may sue the contractor for breach of contract to recover compensatory damages for their losses;
  • Negligence for Construction Defects: Utah courts recognize a cause of action for negligence on the part of a construction contractor that is much like professional negligence for architects, engineers, doctors, and lawyers. A homeowner would allege contractor negligence in the event that the work product of the contractor caused them personal injury or property damage;
  • Breach of Express Warranty: A cause of action for breach of an express warranty would be possible if the parties have a contract that contains an express warranty;
  • Strict liability: Utah 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.

Utah courts have rejected claims based on strict liability for the distribution of defective products. The courts have reasoned that a contractor-builder may not be liable as a distributor of defective building material even if they purchased and used the defective material in their project;

  • Fraudulent Misrepresentation: The Utah Supreme Court has ruled that a builder-contractor has a duty to disclose material information to home buyers. The court stated that fraudulent concealment occurs when:
    • There is a legal duty to communicate information;
    • The party knows information that it fails to disclose;
    • The information that the party knows but does not disclose in the material.

Each of these elements of fraudulent concealment must be proven by clear and convincing evidence. It is more difficult to meet the standard of proof than the normal standard of proof in civil cases, which is by a preponderance of the evidence. For this reason, it is more difficult to succeed with a lawsuit for fraudulent misrepresentation than it might be with one of the other causes of action.

Can I Sue a Contractor Without a Contract?

Under the appropriate circumstances, a person suing a contractor for poor workmanship may claim negligence, fraudulent misrepresentation, or strict liability even though they may not have a contract. However, if a person hires a contractor to perform residential construction work for them, they have a contract with the contractor.

The contract may not be in writing, but a contract can be perfectly valid even if it is not in writing. Contracts may be oral. Contracts do not even have to be expressed in words, orally, or in writing. They may be implied by circumstances, although that is unlikely in the situation in which a person hires a contractor.

If a person does not have a written contract with their contractor, then they have an oral contract. That is because they talked about the project that the contractor was hired to complete. This is enough to create a valid oral contract that a court may enforce.

It is important to note that experts recommend that a person have a written contract for any kind of residential construction project. 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.

It is best to have a written contract for several reasons, but one is that if there is a dispute and it ends up in court, it is easier to prove that there is a contract and to prove what it says if it is in writing signed by both parties to it.

How Do I Sue for Breach of Contract?

Utah does not have small claims courts. Instead, a person may file a lawsuit seeking up to $15,000 in damages in a Justice Court, except in Cache County. The Justice Courts allow parties to resolve their civil disputes quickly and inexpensively compared to a District Court case.

It is best to seek a resolution of a dispute outside of a court of law before taking legal action. A local attorney in Utah would be able to help a person fairly resolve a dispute with a contract.

If settling differences outside of court proves to be impossible, a person may always draft a complaint and file it with the Clerk of the Court in the appropriate Utah court.

The contractor named as the defendant would usually have 30 days to answer. The lawsuit would proceed from there.

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 things. One important factor would be how much a person’s attorney charges for their representation.

If a person sues the contractor in a Utah 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 can be resolved. That is because an attorney is likely to charge an hourly fee for their service.

Reportedly, the average hourly rate for a Utah lawyer is about $250 an hour. This is the average hourly rate. Some lawyers are going to charge more. A person may want to discuss an attorney’s hourly rate with their attorney and ask them if they can provide an estimate of the total cost of their representation in a specific case.

Otherwise, a person may 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 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?

There is a statute in Utah that applies specifically to lawsuits related to improvements to real property. The statute provides in part that an action alleging breach of contract or warranty must be brought within 6 years of the date the improvement project is completed or abandoned.

However, the statute does allow parties to change this period with an express provision in a contract or warranty. An action based on a cause of action other than breach of contract or warranty must be initiated within 2 years of discovery of the cause of action.

Utah has a statute of repose that imposes a limit of 9 years on any action against a contractor or -9 design professional/ The 9-year period begins to run when the improvement project is finished or abandoned. If a cause of action is discovered or could be discovered in the 8th or 9th year of the 9-year period, a person who has been injured has 2 more years to initiate a lawsuit.

An action based on strict liability should be filed 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 of the project.

Do I Need an Attorney for Suing a Contractor?

If you have a dispute with a construction contractor, you want to talk to a Utah contract lawyer right away. LegalMatch.com can quickly connect you to a lawyer who will analyze the facts of your case and help guide you to the best way to get the remedy you need and deserve. Contract cases can be complex, but an attorney can provide you with the guidance and representation for your claim.

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