And again: bad contractor, facing DCA hearing, threatens civil suit--advice?

The contractor’s obviously terrified of DCA, and seems to be d oing his best to blow up that option, though he may well not succeed according to the litigator. If it were that easy, all any contractor who’s fighting a DCA case would have to do is file a lawsuit, right?

Exactly. Look if this person has invested their life in this business and isn’t actually a fly by night guy, the idea of being permanently banned or majorly sanctioned or having to start over working for someone else is devastating. Soit’s worth it for him to not only threaten but spend 20k on you or a lawyer to not pay you 140k (or more). To me, finding out the sweet spot in the middle where you both eat a little shit but are able to move on with your life seems to be the best possible way to go. And then having robust structures with teeth that guarantee payment or else.

I wish guys like this would understand how easy it would be to get his name and company all over the place so that any future customer who googles him for a second would turn around and run away.

Lurker

in General Discussion 8 years and 1 month ago

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robertbullock | 8 years and 1 month ago

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I received some excellent advice from the Brownstoner community a while back on opening a DCA case against our contractor, who we fired for incompetence, negligence and breach of contract. Now I’d like to ask your advice again.

I won’t go too far into the weeds — and I shouldn’t name names at this point, right? — but suffice to say the contractor, who’s city-licensed (and yes we had a contract), did a complete hatchet job on our Bed Stuy gut reno. The cost to date of repairs to their work, together with a bid by a highly regarded contractor to finish the job, total over $140K. Our architect, who’s been truly first rate, says the contractor is the worst he’s ever seen – especially shocking as they talked a good game (OK, maybe that’s not so shocking), had good references, and even advertise here. So anyways, we filed the complaint and now, 14 months later, we’re finally approaching the hearing. Which I’ve been excited about because we have a really solid, well-evidenced case, it’s a lot of money, and we want to put all this behind us. But just yesterday the contract or threatened to file a civil suit if we don’t in the next week agree to drop the DCA case and accept nuisance money of $20K, which their lawyers say is non-negotiable. He’s obviously in fear of the hearing and may just be threatening the suit as an intimidation tactic, which he’s tried before, but it’s not clear.

So what should we do? $20K is a pittance here, but getting into a construction lawsuit is generally a bad idea unless you’re talking damages in the millions (less than that, attorney fees quickly eat up the proceeds). That said, it’s the contractor threatening the suit, $140K is a big number, and it may make sense to invest in a good lawyer and a counter-suit to recover it, even if there are no guarantees. And then, you know, there’s the justice angle: aside from the damages, I’d just like the validation of a court judgement and to have everything out in public, so hopefully no one else goes through this, at least with this contractor. (NB: if the contractor files a civil suit, DCA will suspend the hearing process, so we’d lose that option).

I’ve probably left out important details, but please let me know what you think!

brokelyn | 8 years and 1 month ago

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I’m afraid to ask but would like to know which co. as some details are sounding familiar. I am having issues with one sounding like this one right now and am fed up – if only they put as much care and effort into work as collecting $. Is there any way to DM to compare notes? I also am concerned about not just our house, making it right, but feel a civic duty so others should beware.. Just don’t know next steps, esp if contract is involved, etc.

mozeeatupu | 8 years and 1 month ago

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DCA limits payments from their contractor trust fund to $20K hence their offer number. Regardless follow thru with the DCA case and don’t let the contractor off the hook that easy.

Brooklynreno | 8 years and 1 month ago

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Hi brokelyn, very happy to, these people are a pox. Pls text at 415 430 7697.
Mozeeatupu, thanks for your comment, but DCA told me it may suspend the case if a suit is filed, but I will push that they continue.

resident2 | 8 years and 1 month ago

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Consult a construction litigation Attorney. You will need one to collect anything more than $20,000
Or take the offer and move on with your life. The Court system will take your life over and cost you far more than what you have lost already.

daveinbedstuy | 8 years and 1 month ago

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You have to think about the protracted litigation, the cost to you and the likelihood of ever getting from him whatever settlement may (or may not) be imposed by the court.

robertbullock | 8 years and 1 month ago

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Thank you all, any recommendations on an experienced lawyer with litigation experience I can consult? Based on advice offline, this sounds like a wise step, whether the contractor’s lawsuit comes to pass or not.

Lurker | 8 years and 1 month ago

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Personally I think the civil suit is intended to intimidate you, as it has, and if it is meritless a lawyer will have it dismissed quickly. Follow through with DCA, consider a lawyer who works on contingency if you like. Even if you don’t get 140k, you’ll still be able to pursue the 20k from DCA and/or put this person out of business as they deserve.
Getting 140k back from a GC seems dubious but who knows–maybe they own property, maybe they weren’t smart enough to separate their personal assets from their business ones.
If your case is as ironclad as it seems, be confident. If you google and look up DCA decisions in the past they are decidedly pro-consumer.

slopefarm | 8 years and 1 month ago

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RB- I don’t have a referral for you but I agree that consultation with a lawyer who you would use to litigate sound really wise at this point, both to understand your options and the costs involved, including the costs to litigate. Worth knowing how a DCA resolution affects your options, too. Also worth talking to the attorney about is whether (assuming you know) the contractor is insured and whether your claim against it would be within the scope of coverage (meaning the possibility of more money even if the GC turns out to be judgment proof).

Good luck.

slopefarm | 8 years and 1 month ago

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One more thought — did you sign an AIA contract with your contractor and architect? What does it say about dispute resolution, and authorization of payment? Good things to go over with your lawyer but if the GC is threatening to sue you for payments that required the architect’s prior approval, that is an especially tricky hiss for the contractor to climb.

Litigation is costly. You should worry about throwing good money after bad. It is not enough to win, you must also collect for litigation to be a worthwhile business proposition for you (which is what it is). Your claim is in an awkward spot, too big to walk away from easily, but small enough to be eaten away quickly by fees. No getting around how much this sucks. However, it is costly for the GC, too. The kind of suit he is threatening is most likely not one that an attorney would take on a contingency fee, so there is a chance he is bluffing or, at least is as unprepared for protracted litigation as you are. If you lawyer up quickly — ie before the hearing — I suspect the $20k might be somewhat negoti able. OTOH, there may be ethical constraints against your lawyer using the hearing as leverage for civil settlement.

Lots of questions and considerations, I know.

Guest User | 8 years and 1 month ago

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Hey Robert. I’m a freelance reporter writing about DCA and shoddy contractors. Can you get in touch? Maybe you’d like to be interviewed for my story. Thanks, Kaya Laterman kayalat@gmail.com.

EJR | 8 years and 1 month ago

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Robert/Kaya – I don’t want to impede Kaya’s story, but if you’re going to pursue action through the court system, it’s best not to make any public statements about a future or pending case without the advice of your lawyer.

robertbullock | 8 years and 1 month ago

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Thanks so much for this new burst of advice. EJR, you’re absolutely right unfortunately, so I am being circumspect about the details. Sorry Kaya, I will be very happy to speak to you later, if only on background. I really hope you do the story, as there seems to be an epidemic of this today, especially in Brooklyn.

Slopefarm, we have a contract but not the AIA one. It specifies arbitration in the case of dispute, though the contractor, for his part, seems to have no interest in that and gets off on threats instead (shocking I know). And yes, I’ve learned such lawsuits are not contingency-fee type cases. Tomorrow I’m meeting an experienced litigator a business friend vouches for — everyone, including the DCA attorney, is recommending this course now. Expensive but good.

Lurker, I would love to stick with the DCA hearing system, partly on your example (based on what I’ve read in the archives). The contractor’s obviously terrified of DCA, and seems to be d oing his best to blow up that option, though he may well not succeed according to the litigator. If it were that easy, all any contractor who’s fighting a DCA case would have to do is file a lawsuit, right?

stuyheights | 8 years and 1 month ago

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Robert, can you please email me off line? I believe we live in the same hood. I have a question for you. Just8155 at gmail

robertbullock | 8 years and 1 month ago

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Hi Just55581, I emailed you a moment ago.

stuyheights | 8 years and 1 month ago

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Got it! Thanks!