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Can mandatory arbitration clause in the Construction Contract preclude us from filing criminal charges agains the home builder?

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Tatiana.R

New member
What is the name of your state? Texas

Our lake home builder received 95% of the total payment amount by lying that certain stages of construction have been completed/materials have been purchased. Our house has been in half-completed stage for the past 5 month with no development. There were constant delays due to weather, labor and materials. Week ago we received a termination letter from the builder and invitation to mediation. The builder refused to provide a detailed report as to what has been done and how much was spent on materials and labor.
For the past 2 weeks we also have learned that there are other several home owners that are going through the same scenario with a builder. There are two ongoing civil lawsuits in the Harris County and few ongoing mediation’s as well. In most of the cases the builder did not finish the projects and never payed to the subcontractors. Now most of the homes have a construction liens on them. It looks like our house was the last project of this home builder and now it’s clear to us that it was never a builder intention to finish our house since he was using the funds for our house on some other projects. At this stage we are not disputing the services that have to be provided under the contract (we will later, since the work that has been done on the house is in extremely poorly quality and must be redone) but rather we strongly believe that we bacame victims of a scheme.
There is a mandatory mediation/arbitration clause in our Construction Contract. My question is whether arbitration clause would preclude us to file criminal charges for theft and deceptive practice of business.
 


adjusterjack

Senior Member
My question is whether arbitration clause would preclude us to file criminal charges for theft and deceptive practice of business.
People don't "file charges" they report crimes. Then it's up to the authorities to decide whether to prosecute.

If you believe that you have been criminally defrauded you are free to report that belief to the authorities and see how it goes.

With the amount of money at stake I suggest you consult an attorney. Even with arbitration, you'll need an attorney.
 

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