Contractor Went out of Business - Can We Get Our Deposit Back?
We hired a contractor that had been in business for 20 years to do work on the facade of our building. The applications are in at DOB and Landmarks but the permits haven’t been pulled. On Monday they announced they were out of business – and cut off their phones and email. We had paid…
We hired a contractor that had been in business for 20 years to do work on the facade of our building. The applications are in at DOB and Landmarks but the permits haven’t been pulled. On Monday they announced they were out of business – and cut off their phones and email. We had paid a 5K deposit. Are we SOL?
Just an update – I’ve heard nothing further from anyone on Wolf. Will file small claims for what its worth, though may have to go out to Nassau to do so (their warehouse or satellite office address in Brooklyn may let me file in NYC, not sure).
Anyone heard anything at all?
Thanks Vinca. I’d like there to be some other explanation for why a company would take a deposit on a Monday and go out of business by Thursday but it’s pretty cold. Marc Hyman was very nice in person, his office was attentive in working out the proposal and not rushed or desperate in getting the deposit, and then — poof — gone a couple days later. I am filing with BBB, Consumer Affairs and Small Claims but no other word yet as to what happened. The property managers for the big building down the street said they have no info either, and the workers took all the equipment from their job when they found out they weren’t being paid.
I guess we’ll find out soon if they were polite about this and listed everyone as debtors in a bankruptcy filing. If there even is a bankruptcy filing — I’ll have to call the Nassau courts to see if there is one. What happens if they just turn out the lights and disappear?
InwoodHill (and Parkplacer?): I have recommended Wolf Restorations many times. When I read your posts, I felt ill. That Wolf would fold up overnight and walk away with other people’s money runs contrary to everything I know about them, both as a business and as individuals. I called one of their subcontractors to ask what they’d heard, only to find that they, too, were stunned by the news but had no further information. I wish you the very best outcome in following several avenues of recourse (consumer affairs, better business, small claims, etc.). If I hear anything further, I will post the information. If permit applications have already been submitted to DOB and LPC, check the applications for names of architects and/or expediters used by Wolf on your job—maybe they can tell you more. A certain amount of work and cost goes into preparing applications. It does not soften the blow of what you’re dealing with, but if the applications can be picked up by another contractor, yours may not be a total loss.
5k is the maximum you can collect in small claims court and it will cost you less than $100 to file the paperwork so you answer whether or not it is worth it. I would go after the business and the principal on the paperwork so you can go after his personal finances.
Good luck. Let us know how it turns out. How terrible.
Yes, it is a definitely uncool feeling and I doubt I’ll ever see my money again. I’m not a large co-op building with lots of shareholders to spread financial surprises like this — I’m just me — so I’m not feeling too great this morning. If only I had procrastinated another week before selecting a proposal. Of course, I could have acted faster and been left with more money gone and a half-finished job. Either way, this sucks. Hope it never happens to you.
hmmm, like any business that’s insolvent, I’m sure they have a long line of creditors, including the IRS, that will be ahead of you – unless there is a state law that forces contractors to put deposits in a separate escrow account, you will have to join the queue.
Guess what, I’m in the same boat. I know exactly who you are talking about, Wolf Restorations. They were doing a major facade project on my block and after meeting with them I gave them a deposit for a small job on my building. Now all their phone, fax and email are down and they seem to be out of business according to the property managers who were doing the big facade job. They are contacting their lawyers.
There was no indication that this would happen, and I had chosen them after talking to a half dozen others.
I will also call Consumer Affairs now.
If it’s one of the Valaroso’s, get in line. Hire an attorney and join the others suing them for deposit returns.