Stiffed $50,000 Then Billed $103,000

Pink

I did a painting job for a company I worked with exclusivily for 10 years. Followed them all over the United States. Never had a problem with pay or management ever. The company started having internal problems this last year and lost money on some deals. Well the trinkle down effect occurred and started seeing others get the shaft. I didn't think it would happen to my company because I had bailed them out of tough spots in the past and was a true team player. However after the job was complete I was paid all my money with the exception of the almighty 10% retainage. Well I understood from years past that I wouldn't be getting that until the job was CO'd. The builder then decided that he wanted to add new work for me but didn't want to put it in a change order. I decided not to do the new work based on that and they hired another contractor to come in and take over. I told them that made my contract null and void and the new contractor assumes responsibility for the touch up portion of my contract. The builder who hired the new contractor billed me $53,000 for having to hire the contractor. The builder also told me that I would not be getting my retainage of $50,000. I am at a total loss of what to do with this builder and because they have more resources then I, I feel as though I am going to lose big on this. I am angry that we were done this way after all the years spent with this company. What do we do and how do I keep them from ruining my credit with a judgement for the fraudulent amount they say I owe them? Not to mention our reputation in the comunity. We have no money for a lawyer at this time.

Humble Abode

I don't think you can afford not to hire a lawyer!

Seriously $50,000? Get the money from a relative or friend. No one on this BB is going to be able to get the money you are due.

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Just because some of us can read and write and do a little math, that doesn't mean we deserve to conquer the Universe. Kurt Vonnegut, (1922 - 2007) from the Novel 'Hocus Pocus'
The NAPP
Milwaukee Painting Contractor

Mike Finley

Yep, you're talking some serious dollar amounts. Since you are coming here for advice I am guessing you don't have a relationship with an attorney? It's time to get one. Attorney's initial consultations are always free, so go and contact at least one and get some serious legal advice.

camaroman2125

This is the exact reason I keep law firms on retainer all over the country. Ya never know when someone is going to try and rip you off. whether it be family,a friend, or someone you work for. Lawyer up and see what ya can do is all the advice I can give ya.

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SOME PEOPLE ARE LIKE SLINKIES - NOT REALLY GOOD FOR ANYTHING BUT THEY BRING A SMILE TO YOUR FACE WHEN PUSHED DOWN THE STAIRS.

wackman

In a lot of states you can contact the state Bar association and tell them your situation. They will recommend a firm in the field you need who then must give you the first hour at a very reduced rate. It's a good place to start for little money.

Good luck,

Wack

dirt diggler

"There is no true love on this earth except that from a mother to her child"

dirt diggler

"There is no true love on this earth except that from a mother to her child"

joasis

The primary reason most people settle up when bullied, is they are afraid of lawyers and courthouses....go for the consult, get 2 or even 3 opinions, and I will bet you find a lawyer who will take your case and go for damages and a share for his time. When someone tells me "I'll sue" or those magic words "I'll see you in court", I am good to go...that is why I have a great relationship with my lawyer, and he isn't afraid of going to trial...which is my estimation of a lawyer, since 95% of lawyers never see the inside of a court room...they all want to settle.

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dayexco

if you truly can't afford an atty. right now, see if there is one that will take the case on a contingent basis...in other words, you collect, he collects, only he's going to want a %....but hey, 60% of something is better than 0% of something

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someday, i'll be as patient as Nick.

slickshift

Hella first post Pink

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Quote:

Originally Posted by ModernStyle I have never used this crap before and I pray to the paint gods that I never have to use it again, I would rather use Behr

mdshunk

I just have a hard time understanding how a subcontractor dealing in numbers that large can't spring a few hundred bucks to speak with an attorney about it.

dougchips

Most of them will offer or you can offer to trade services. If you have really good book keeping this will create a nightmare.

Pink

This job was a nightmare from the start. After paying everyone I owed for the job including materials. The job left me with nothing. The retainiage was to be my profit. I do other work now but at the time I was just doing that job exclusively. I learned alot of lessons from this but my confidence has been low. I am considering not signing contracts with retainage being taken out or financing the jobs. Average lawyers costs around here are $270-$350 hour.

eastend

so you're saying you did $500K worth of work, got paid $450K- and you're bone dry? Did you way underestimate the job?

Mike Finley

This is actually the age of the telephone, it's been around a few years now, you can call an attorney outside your expensive area.

Also, the initial consultation are always free. The initial consultation will give you answers to what your chances are or aren't. You can also call more than one attorney to get a consensus. Without that information everything is just a guess and a waste of time. With 100K on the line, I could find the time to pick up the phone.

painterjim

You say the builder had a contract, but you had none? Why?
Regardless I would sell anything I had to to get my money from the builder, its a sea of sharks out there, dont let them smell blood. I have been to court on numerous occasions over amounts 1/10 th of that amount.

ApgarNJ

500k worth of painting and drywall, that is a seriously big job.

i'd be calling a lawyer even if he got 10-20% ast least you got 80 grand coming, rather than nothing.

mahlere

if i'm reading this right, and I like to think I am, he actually only has a claim to $50,000. That's the retainage. The other $53,000 is what the GC invoiced him for having another painter do the extras, that the GC didn't want to pay pink. Is that correct?

So, essentially, he's out $50k and should still find a lawyer. GC's are notorious scumbags (no offense to the non scumbag GC's on this board) and actually live life simply to screw the sub-contractors. This GC is probably going to buy a new porsche with that $50k.

Find a good attorney, or even a bad one, see if you can get a contingency fee (most will take it for 30%-40%) If you win, and get paid, you'll get $30K (the lowlife lawyer will get $20k) but, best of all, the GC will have to steal money from a different sub in order to buy his new Porsche.

Don't cower, don't hide, if you are in the right, go at him full force with both fists.

Pink

Thanks for all the advice I have contacted a laywer but was advised by the laywer not to pursue it until they file suit against me. They said to countersue them because if we pursue them they will just bankrupt leaving me with lawyer bills and no relief from the builder. I will look around for another lawyer but I guess I will be chalking this one up to a loss maybe I can deduct it from my taxes. The retainage was to be my profit for the job I made money off the project but that went to keeping up my home I own and the one I had to rent while I worked out of state and of course daily living expenses, taxes, insurance, etc. I am just going to chalk this one up to a learning experience. I know
God will bring me better opportunities. By the way I'm a she not a he.

Mike Finley

How did the attorney make this determination? How is he so positive the builder will file bankruptcy? I'm glad you talked to an attorney, but I would get a 2nd opionion before drawing any conclusions.

I once talked to 5 attorneys about an issue and all 5 of them had various opinions! All 5 couldn't have been all right at the same time, which is what it turned out to be. One was a pure idiot, a 2nd wasn't interested in my case based on the size of the work he did the other 3 were close in their opinions just had various degrees of thoughts on success and failure of it.

But if all I had listen to was the other 2 I would have gotten a very different out come.

Good luck with it however it turns out.