customhomegonebad

[mollypacker]

What is the name of your state (only U.S. law)? Oklahoma

I own a homebuilding company that is an LLC. I was in the process of building a custom home for a couple and the cost of building started to get higher than I had quoted them due to thier upgrades on windows, roof, finishing out more sq. ft. They stopped paying me so the sub-contractors stopped being payed. therfore lienswere placed on the house. now they are filing charges against me saying that I am responsible for the entire amount. Legally what are my options? They are saying that I can be arrested for embezzlement

[HomeGuru]

Originally Posted by mollypacker

What is the name of your state (only U.S. law)? Oklahoma

I own a homebuilding company that is an LLC. I was in the process of building a custom home for a couple and the cost of building started to get higher than I had quoted them due to thier upgrades on windows, roof, finishing out more sq. ft. They stopped paying me so the sub-contractors stopped being payed. therfore lienswere placed on the house. now they are filing charges against me saying that I am responsible for the entire amount. Legally what are my options? They are saying that I can be arrested for embezzlement

**A: you need an attorney like last year. And there is a lot more to this story.

[jhlwstdnt]

Generally, in order to sustain a conviction of embezzlement it must at least be shown, (i) that the accused was the agent or bailee of the prosecuting witness in holding the alleged embezzled property; (ii) the property must actually belong to the alleged principal; (iii) it must be lawfully in the possession of the accused at the time of the alleged embezzlement; (iv) the accused must have been guilty of the conversion which the statute denounces; and, (v) there must be shown an intent on the part of the accused to deprive the prosecuting witness of his property unlawfully.

Assuming arguendo, that you have proper accounting and all monies were passed through, you may still not recover under the contract for additional costs, unless, you properly documented all change orders, delays, and disruption caused by the Owner's changes.

Also, were the plans or specs defective to justify costs increase, or did you under estimate the project?

[John Se]

Originally Posted by mollypacker

What is the name of your state (only U.S. law)? Oklahoma

due to thier upgrades on windows, roof, finishing out more sq. ft. Legally what are my options?

You wont be arrested, its a tort not a crime.

You did quote the Change orders correct, change of scope to the contract?

Just get a lawer to respond, they will find out you have no money, as a contractor you only have to fight to a draw, not win. While your unreasonable customer has to prove their case...Win, then try and get money out of you. What's THEIR chance of that...Zero, they are just trying to scare you. Dont let them, send them a letter explaining the cost growth and quote the change orders. Explain to them you have no money, They will only blow money on a lawyer and then have nothing to show for it.

Its only angry and unreasonable people that sue, others settle