• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Seller Suing for Breach of Contract

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

alexshim

New member
Hi, just as a pre-text to below info, I am getting a lawyer, but also want to know how to best proceed as a few lawyers have given me different avenues.

Have a company that is an investment corporation (Inc). Has not done bussiness for 8 months now. Company had land in Florida. Hired a builder to build a home, has a contract between builder and company.

House was sold about 2 years ago.

About a year ago, buyer filed complained via lawyer about a few issues with the home.

Company contacted the builder, and builder promised to fix some stuff.

A year later, we get served. Builder is also served for negligence and company is sued for breach of contract (the contract being purchase and sales agreement).

Most things that the plaintiff asserts are absurd but they are there.

For one, there was an option in the contract for an escrow IF some items were not build by closing date. The times were build so escrow never collected. It was a part of the contract. They are asserting that we broke the Contract by not collecting on that escrow? Confusing to me as the items listed as part of the escrow option are complete.

The other thing they are asserting is that the plaintiff though they were buying directly from builder and did not knew of the company existence... pretty clear in the contract who the seller is...

The thing is the company has negative cash flow, does not plan to do anymore investments. In fact prior to the lawsuit the company was going to be dissolved. I guess the issue is that they can try and “pierce the corporate veil” but that would be hard to do from my understanding...

So when contacted a few lawyers some of them said to just default since the company has no money.

Others said we have to answer the complaint.

From my understanding is that what the plaintiff wants is for the company to pay for the lawyer fee because part of the standard sales contract it does state that if either party enter a lawsuit the losing party has to pay for the fees, and this is part of their complaint as that they want their law fees paid.

Anyways, should we fight this (will cost money for lawyer)...

I had a few lawyers really scare me saying that this is going to cost 30-40K... the house is not even worth all that much.

What do you guys think?
 


Just Blue

Senior Member
Hi, just as a pre-text to below info, I am getting a lawyer, but also want to know how to best proceed as a few lawyers have given me different avenues.

Have a company that is an investment corporation (Inc). Has not done bussiness for 8 months now. Company had land in Florida. Hired a builder to build a home, has a contract between builder and company.

House was sold about 2 years ago.

About a year ago, buyer filed complained via lawyer about a few issues with the home.

Company contacted the builder, and builder promised to fix some stuff.

A year later, we get served. Builder is also served for negligence and company is sued for breach of contract (the contract being purchase and sales agreement).

Most things that the plaintiff asserts are absurd but they are there.

For one, there was an option in the contract for an escrow IF some items were not build by closing date. The times were build so escrow never collected. It was a part of the contract. They are asserting that we broke the Contract by not collecting on that escrow? Confusing to me as the items listed as part of the escrow option are complete.

The other thing they are asserting is that the plaintiff though they were buying directly from builder and did not knew of the company existence... pretty clear in the contract who the seller is...

The thing is the company has negative cash flow, does not plan to do anymore investments. In fact prior to the lawsuit the company was going to be dissolved. I guess the issue is that they can try and “pierce the corporate veil” but that would be hard to do from my understanding...

So when contacted a few lawyers some of them said to just default since the company has no money.

Others said we have to answer the complaint.

From my understanding is that what the plaintiff wants is for the company to pay for the lawyer fee because part of the standard sales contract it does state that if either party enter a lawsuit the losing party has to pay for the fees, and this is part of their complaint as that they want their law fees paid.

Anyways, should we fight this (will cost money for lawyer)...

I had a few lawyers really scare me saying that this is going to cost 30-40K... the house is not even worth all that much.

What do you guys think?
What state?
 

quincy

Senior Member
Hi, just as a pre-text to below info, I am getting a lawyer, but also want to know how to best proceed as a few lawyers have given me different avenues.

Have a company that is an investment corporation (Inc). Has not done bussiness for 8 months now. Company had land in Florida. Hired a builder to build a home, has a contract between builder and company.

House was sold about 2 years ago.

About a year ago, buyer filed complained via lawyer about a few issues with the home.

Company contacted the builder, and builder promised to fix some stuff.

A year later, we get served. Builder is also served for negligence and company is sued for breach of contract (the contract being purchase and sales agreement).

Most things that the plaintiff asserts are absurd but they are there.

For one, there was an option in the contract for an escrow IF some items were not build by closing date. The times were build so escrow never collected. It was a part of the contract. They are asserting that we broke the Contract by not collecting on that escrow? Confusing to me as the items listed as part of the escrow option are complete.

The other thing they are asserting is that the plaintiff though they were buying directly from builder and did not knew of the company existence... pretty clear in the contract who the seller is...

The thing is the company has negative cash flow, does not plan to do anymore investments. In fact prior to the lawsuit the company was going to be dissolved. I guess the issue is that they can try and “pierce the corporate veil” but that would be hard to do from my understanding...

So when contacted a few lawyers some of them said to just default since the company has no money.

Others said we have to answer the complaint.

From my understanding is that what the plaintiff wants is for the company to pay for the lawyer fee because part of the standard sales contract it does state that if either party enter a lawsuit the losing party has to pay for the fees, and this is part of their complaint as that they want their law fees paid.

Anyways, should we fight this (will cost money for lawyer)...

I had a few lawyers really scare me saying that this is going to cost 30-40K... the house is not even worth all that much.

What do you guys think?
I think you need to make in-person appointments with a few attorneys, settle on one of these attorneys, and then follow the attorney's advice and direction.

The specifics of your business need a personal review, as does the complaint filed against it. Because you have a limited amount of time to respond to the lawsuit, you do not have the luxury of gathering opinions from strangers on internet forums, regardless of how bright these strangers might be.
 

adjusterjack

Senior Member
the issue is that they can try and “pierce the corporate veil”
They can try. Have you been named as an individual in the complaint?

that would be hard to do from my understanding...
It's actually not too difficult to do that if you are a one person company.

So when contacted a few lawyers some of them said to just default since the company has no money.
If you are named as an individual in addition to your company name and you default, the judgment is against you personally.

Others said we have to answer the complaint.
That would be wise.

From my understanding is that what the plaintiff wants is for the company to pay for the lawyer fee because part of the standard sales contract it does state that if either party enter a lawsuit the losing party has to pay for the fees, and this is part of their complaint as that they want their law fees paid.
What lawyer fees? They don't get to seek lawyer fees unless they win the lawsuit.

Anyways, should we fight this (will cost money for lawyer)...
Entirely up to you.

I had a few lawyers really scare me saying that this is going to cost 30-40K
Could very well cost that much at $300 to $400 per hour.

What do you guys think?
I think the same as Quincy. We are of one mind on the matter.
 

alexshim

New member
Thanks.
Of course I am looking for a lawyer. Issue is , I don’t live in Florida so, has go be over the phone which makes it hard.

the corporation was made of 2 people and no one personally has been named, of course that can change.

in terms of the last point, the last part of their complaint letter states that they seek the plaintiff lawyer fees and all the costs associated with them filing the lawsuit...

yeh will see how this plays out.
 

adjusterjack

Senior Member
Of course I am looking for a lawyer. Issue is , I don’t live in Florida so, has go be over the phone which makes it hard.
That's the risk you take when you invest in properties that are not located where you live. Lawsuits will almost always occur where the property is located and be very expensive and inconvenient to defend.

You'll need a lawyer there, not where you are.

in terms of the last point, the last part of their complaint letter states that they seek the plaintiff lawyer fees and all the costs associated with them filing the lawsuit...
That's a standard part of any lawsuit. They still have to win to get it.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top