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A thought or so..........
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Posted by Herb Hirsch [Email] (#114) [Profile/Gallery] (more from Herb Hirsch) on Thu, 7 May 2009 13:37:12 Share Post by Email
In Reply to: Are there any lawyers here? I have a slight problem., 00 9-3 SE, Thu, 7 May 2009 07:46:46
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1. If you do nothing....
a. The contractor may just give up and go away. Probably not likely.
b. They may quietly put a lien on your property which you will have to
resolve in order to sell it. This puts you in a situation where
you'll have to resolve it in order to consummate the property sale
anytime in the future.
c. They may sue you, in which case you'll have to hire a lawyer to
resolve it...a strategy that will cost you a lot more than the
$4,000 you owe now.
d. They may sell the debt to a collection agency, a collection of folks
that are professionally adept at getting you to pay legally, or else.

2. Take action...sue them in small claims court. A judgment against them
for $4,000 will end their claim against you.
a. Preparation is key. Have pictures, and written estimates regarding
the cost of repair to remedy the deficiency. If the cost of repair
is $1,000 from a contractor of your choosing, you may end up paying
them $3,000 versus the $4,000 you owe.
b. Start doing things in writing; create a paper trail. If they call,
write a letter and confirm anything agreed to or not, and fully
recap the exchange.
c. If you sue them in small claims court, they'll have to respond.
They'll automatically lose if they don't.

In summary, you stand to lose more by doing nothing than by acting. It would be to your advantage to research something about how small claims court works in your state/country and contract law as it is applied in your locale.
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