Contractor failing to do the job

[bigearl67]

Indiana

Issues with contractor. Insurance paid Mortgage holder and Mortgage holder paid roofing contractor $5000 to replace fire destroyed roof last July. I picked out the contractor. I was verbally promised the work would be done in weeks and we wrote up a quick form type contract. Work has not started nor has the materials been purchased. The first excuse was the new roof was ordered and arrived in the wrong color so had to be reordered. I checked the story out and it was a lie, one which can be documented. The roof was never ordered in the first place. Next he was out of town for a month and now he has a bad back and can’t work. He bragged that since the contract lacked a start date he could put it off another three months and was more than willing to do that because of his back issues. He does have a work crew that works for him.
Twice during this time frame he set dates when he would show up at the house and do the work. No-Show both times. I honestly do not believe he has any intention of ever doing the work. But do I have any recourse? Is he correct that he can put the job off as long as he wants since there is no start date on the contract? He is a Kentucky contractor however my residence is in Indiana, if I do have recourse it should be with the Indiana courts, correct?
I’m about to go thru an Indiana winter without a roof on my home. I’m concerned about further damage and the safety of my children.

 

[OHRoadwarrior]

It is customary top pay the contractor when work is completed or a down payment, with balance when work is completed. Your recourse appears to be small claims court.

 

[latigo]

Indiana

Issues with contractor. Insurance paid Mortgage holder and Mortgage holder paid roofing contractor $5000 to replace fire destroyed roof last July. I picked out the contractor. I was verbally promised the work would be done in weeks and we wrote up a quick form type contract. Work has not started nor has the materials been purchased. The first excuse was the new roof was ordered and arrived in the wrong color so had to be reordered. I checked the story out and it was a lie, one which can be documented. The roof was never ordered in the first place. Next he was out of town for a month and now he has a bad back and can’t work. He bragged that since the contract lacked a start date he could put it off another three months and was more than willing to do that because of his back issues. He does have a work crew that works for him.
Twice during this time frame he set dates when he would show up at the house and do the work. No-Show both times. I honestly do not believe he has any intention of ever doing the work. But do I have any recourse? Is he correct that he can put the job off as long as he wants since there is no start date on the contract? He is a Kentucky contractor however my residence is in Indiana, if I do have recourse it should be with the Indiana courts, correct?
I’m about to go thru an Indiana winter without a roof on my home. I’m concerned about further damage and the safety of my children.

You need to speak with an attorney, quickly.

For one, if the mortgagee paid the $5K directly to the contractor and not through you, you may have a cause of action against the mortgagee for being derelict in the dispensation of the insurance pay out before completion.

But rely on the advice of the attorney and don’t be so imprudent as to think that you can effectively resolve the dilemma otherwise, because you can’t. And messing the case up in small claims could be an end of it!

Clearly getting a judgment against the shady contractor will not expedite getting your roof repaired nor is their any guarantee that you could collect it. (The crook is likely judgement proof) Plus you may have to file suit in Kentucky, or in the least have an Indiana domesticated in Kentucky as a foreign judgment before attempting to collect it in that state.

Also, if the $5K was paid directly to the roofer there could be an issue as to who is the proper party to file a lawsuit. It might be that you could take the position of a third party beneficiary and sue the roofer, but that is something for which you will need professional advice and unlikely resolvable in a small claims court.

Additionally, you should converse with your attorney on the likelihood of the roofer having committed criminal fraud by accepting the money with no intention of completing the contract.

Of course proving the criminal intent, i. e., state of mind, is purely subjective and must be shown by circumstantial evidence. But here there might be sufficient post-contract evidence that he never intended to complete.

Moreover, some discovery efforts at ferreting out his financial records might reveal that he blew the $5K, including that necessary for the purchase of materials/or they went to another project and they’re sitting atop a house in Kentucky.

These are just some thoughts, not to be taken as legal advice. Again, rely on counsel. Just get together with one!

Good luck

 

[bigearl67]

Latigo,
Thanks for the advice. I really appreciate it even if it’s not all I wanted to hear. The Mortgage Company sent me a two party check in my name and the contractor’s company name. I signed it as did he in front of my Credit union who promptly refused to cash it because it was in a business name. We wrote up a quick contract (without start date) and I trusted him to install my roof in a couple weeks. That was mid July. I’m seriously concerned about needing to file in Kentucky as I really do not feel they will side with an Indiana resident regardless of the situation. What is the proper nomenclature for an “open ended” contract like this?
What I’m really hearing you say: Quite messing around and talk to an attorney, now!
Thanks again for the good advice. Earl.