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Subcontractor Lawsuit

 
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Old 04-18-2019, 02:38 AM   #1
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Subcontractor Lawsuit


Hello
I am being sued by my roofing sub, for cause. I owe them 1/4 of the invoice for a large commercial roof job. Was paid in full, but used the last bit to do other jobs, having been promised to be paid promptly by the project managers (one of the same facility as the roof job, and another for a different company).
The contract agreement with the sub, their own, called for mediation and arbitration before the lawsuit, but though the owner has been patient with me and reached out countless times, I have not been able to meet my obligations yet. So he jumped directly to the lawsuit, fearful I am about to declare bankruptcy.
The sub also named the surety bond company, which wants me to get a lawyer or use theirs, at cost. I don't want to get either my lawyer or theirs, but am unsure if I can get away with it. The case is pretty clear, and best I can do is offer a payment plan to the sub. Anyone gone through something similar to offer advice?
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Old 04-18-2019, 04:07 AM   #2
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Re: Subcontractor Lawsuit


How much do u own them? Sell some of you stuff! You mismanaged the money, so now u should sacrifice. Don't ever use your labor money to start another job! That's super effed up. That is the worst way to do business. Why didnt u get a down payment from the other people?

Anyway it's gonna cost you 5 grand min if they sue u and no you can't representative yourself. On top of that you might get stuck paying for their attorney too which is another 5 grand. Then they send some lawmen over to your house and they take all your stuff to sell it in order to pay your debt

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Old 04-18-2019, 06:48 AM   #3
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Re: Subcontractor Lawsuit


If the contract says arbitration the judge will probably throw it out.
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Old 04-18-2019, 07:16 AM   #4
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Re: Subcontractor Lawsuit


Have you been up front with them? Have you told them you stole their money and spent it on other things?

If not, I think you need to come clean. Offer up a payment plan. It will go to mediation first. They will probably tell you to pay your bill.

Remember. When you stole from them, they had obligations as well, now they are left scrambling to make ends meet, because of you.
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Old 04-18-2019, 09:25 AM   #5
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Re: Subcontractor Lawsuit


How much $ are we talking?
Do you have any assets that you could sell or get a loan on?
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Old 04-18-2019, 10:38 AM   #6
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Re: Subcontractor Lawsuit


Come clean and be upfront with them. Pay them something each and every week till you fulfill your obligations.

Do you have cable TV at home? Go out to eat everyday, weekly? Eliminate these luxuries and send them money to the trade.

Maybe purchase materials on a credit card, use the money to settle with your sub, and make payments to the bank instead. (They are in the lending business whereas your Sub is not).
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Old 04-18-2019, 01:09 PM   #7
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Re: Subcontractor Lawsuit


Quote:
Originally Posted by maodo View Post
Hello
I am being sued by my roofing sub, for cause. I owe them 1/4 of the invoice for a large commercial roof job. Was paid in full, but used the last bit to do other jobs, having been promised to be paid promptly by the project managers (one of the same facility as the roof job, and another for a different company).
The contract agreement with the sub, their own, called for mediation and arbitration before the lawsuit, but though the owner has been patient with me and reached out countless times, I have not been able to meet my obligations yet. So he jumped directly to the lawsuit, fearful I am about to declare bankruptcy.
The sub also named the surety bond company, which wants me to get a lawyer or use theirs, at cost. I don't want to get either my lawyer or theirs, but am unsure if I can get away with it. The case is pretty clear, and best I can do is offer a payment plan to the sub. Anyone gone through something similar to offer advice?
Congratulations, you just forced your sub who you haven't paid to shell out at least $3k and probably the $5k marina mentioned. Now you're screwed. It's your turn to fork over a retainer.

If you could actually follow a payment plan, your sub knows you would have offered one up by now. He's probably right to be first in line for your bankruptcy.

JMO, nothing personal.
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Old 04-18-2019, 01:11 PM   #8
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Re: Subcontractor Lawsuit


Advice? Pay the man.
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Old 04-18-2019, 01:40 PM   #9
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Re: Subcontractor Lawsuit


Quote:
Originally Posted by maodo View Post
Hello
I am being sued by my roofing sub, for cause. I owe them 1/4 of the invoice for a large commercial roof job. Was paid in full, but used the last bit to do other jobs, having been promised to be paid promptly by the project managers (one of the same facility as the roof job, and another for a different company).
The contract agreement with the sub, their own, called for mediation and arbitration before the lawsuit, but though the owner has been patient with me and reached out countless times, I have not been able to meet my obligations yet. So he jumped directly to the lawsuit, fearful I am about to declare bankruptcy.
The sub also named the surety bond company, which wants me to get a lawyer or use theirs, at cost. I don't want to get either my lawyer or theirs, but am unsure if I can get away with it. The case is pretty clear, and best I can do is offer a payment plan to the sub. Anyone gone through something similar to offer advice?
I've thought about this.

I want to give you credit for owning up to your mistake. At least to internet strangers.
I think there are alot of people who would deny, deny, and deny. Not you. You made a mistake and were honest enough to admit it. (to internet strangers at least)

Have you given the same amount of honesty to your victim?
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Old 04-18-2019, 02:10 PM   #10
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Re: Subcontractor Lawsuit


Quote:
Originally Posted by builditguy View Post
Have you given the same amount of honesty to your victim?
Doesn't seem so which is why the guy he owes money to did what he did...

Quote:
Originally Posted by maodo View Post
but though the owner has been patient with me and reached out countless times, I have not been able to meet my obligations yet. So he jumped directly to the lawsuit, fearful I am about to declare bankruptcy.
Sounds like he didn't have the $$ money so was avoiding the guys outreach...

OP... Assuming you're not a one-post wonder who disappears, contact him TODAY, apologize that you've been avoiding him and that it was because you just didn't have the money yet... give him a tangible plan for repayment (you're attempting to sell stuff, he gets the profit from your next 5 jobs, you're working on getting a loan to pay him back, whatever your solution is...). He's a businessman, he knows something is better than nothing and going to court, the lawyers get a good chunk of it, benefiting neither of you especially if an alternative credible solution is available to you both.

Doing the same thing that got you here in the first place (ignoring him - lawsuit was him saying he won't be ignored) is not going to solve your issue. Sucking it up and contacting him TODAY to work it out is...

Last edited by KAP; 04-18-2019 at 02:25 PM.
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Old 04-18-2019, 03:49 PM   #11
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Re: Subcontractor Lawsuit


OP - How would you handle things, or how would you react, if the homeowner told you he had run out of money, when you were there to collect your final payment for the work you did? Would you appreciate it if he were to ignore you and your phone calls?

Would you be inclined to not call your attorney, if the guy was making an honest effort, and sending you some money regularly?

Lastly, if you spend some time here on CT, and follow along these threads, you will learn that these guys are successful business owners. You can learn a lot about how to run your business, and how NOT to run your business.

They will also give you advice that might be hard to swallow, but it is what you need to do. You won’t get any sympathy or slack.
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Old 04-18-2019, 04:07 PM   #12
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Re: Subcontractor Lawsuit


I think that KAP may be right about the one post wonder. No history, no profile, joined today to profess his sins of stealing the money and avoiding payment.

I know where this guy is, I am from a neighboring city. The city the OP hails from is, well..."low rent"..if you get my drift. There is a lot of "fly by night" unlicensed work that goes on all through that area. Not that it doesn't have some good points.....like some cheap gas stations as long as someone guards your car while you fill up.

Nonetheless, CT is not a good confessional. Admit it OP, you "f'd" up, you took money that belonged to someone else, and you avoided them when they tried to contact you to get answers or work it out. I would hate to think that this is your normal business model.

Easter Sunday is coming up. Go to church, confess your sins (like stealing and lying), then call the guy up and work out a plan.
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Old 04-18-2019, 04:20 PM   #13
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Re: Subcontractor Lawsuit


Quote:
Originally Posted by Big Johnson View Post
If the contract says arbitration the judge will probably throw it out.
why? Isn't the contract we both signed the primary document? Isn't it why we have a contract? And aren't all processes based on that contract? Why would we agree to mediation then have a judge overide it?
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Old 04-18-2019, 04:22 PM   #14
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Re: Subcontractor Lawsuit


Quote:
Originally Posted by builditguy View Post
Have you been up front with them? Have you told them you stole their money and spent it on other things?

If not, I think you need to come clean. Offer up a payment plan. It will go to mediation first. They will probably tell you to pay your bill.

Remember. When you stole from them, they had obligations as well, now they are left scrambling to make ends meet, because of you.
very helpful. please reread my post. don't break your beck rushing to judgement. be constructive please
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Old 04-18-2019, 04:24 PM   #15
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Re: Subcontractor Lawsuit


Quote:
Originally Posted by jhark123 View Post
How much $ are we talking?
Do you have any assets that you could sell or get a loan on?
about $30000.
as I said. i WILL PAY THEM. the issue is i can't right this minute because waiting for my invoices to get paid. And, no, I don't have assets i can sell to make it. And yes, I have been upfront with them. And they are under same problem because the same company that owes me also owes them money.
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Old 04-18-2019, 04:27 PM   #16
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Re: Subcontractor Lawsuit


Quote:
Originally Posted by Adamthebuilder View Post
Come clean and be upfront with them. Pay them something each and every week till you fulfill your obligations.

Do you have cable TV at home? Go out to eat everyday, weekly? Eliminate these luxuries and send them money to the trade.

Maybe purchase materials on a credit card, use the money to settle with your sub, and make payments to the bank instead. (They are in the lending business whereas your Sub is not).
yes, been upfront with them. I have the money coming but unsure when exactly.
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Old 04-18-2019, 04:29 PM   #17
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Re: Subcontractor Lawsuit


Quote:
Originally Posted by builditguy View Post
I've thought about this.

I want to give you credit for owning up to your mistake. At least to internet strangers.
I think there are alot of people who would deny, deny, and deny. Not you. You made a mistake and were honest enough to admit it. (to internet strangers at least)

Have you given the same amount of honesty to your victim?
Thank you. Yes, been very upfront from the start, and kept him abreast of any denouement. A very nice guy and very patient too.
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Old 04-18-2019, 04:33 PM   #18
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Re: Subcontractor Lawsuit


Quote:
Originally Posted by KAP View Post
Doesn't seem so which is why the guy he owes money to did what he did...

Sounds like he didn't have the $$ money so was avoiding the guys outreach...

OP... Assuming you're not a one-post wonder who disappears, contact him TODAY, apologize that you've been avoiding him and that it was because you just didn't have the money yet... give him a tangible plan for repayment (you're attempting to sell stuff, he gets the profit from your next 5 jobs, you're working on getting a loan to pay him back, whatever your solution is...). He's a businessman, he knows something is better than nothing and going to court, the lawyers get a good chunk of it, benefiting neither of you especially if an alternative credible solution is available to you both.

Doing the same thing that got you here in the first place (ignoring him - lawsuit was him saying he won't be ignored) is not going to solve your issue. Sucking it up and contacting him TODAY to work it out is...
I did not ignore him. WE spoke at least every week. I kept him aware of what was coming, or not, relating to the money i was owed. Our relationship was very civil, not contentious at all as I have always been upfront with him. I am sure he knows I am good for it, but he says their inner structure requires him to file a lawsuit IN ORDER TO PROTECT their interest. I told him I understand and can no longer ethically ask him to wait. I am sure once I start making big payments, the lawsuit might go away but as for now, I need to know how to handle the lawyer issue.
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Old 04-18-2019, 04:37 PM   #19
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Re: Subcontractor Lawsuit


Quote:
Originally Posted by Adamthebuilder View Post
OP - How would you handle things, or how would you react, if the homeowner told you he had run out of money, when you were there to collect your final payment for the work you did? Would you appreciate it if he were to ignore you and your phone calls?

Would you be inclined to not call your attorney, if the guy was making an honest effort, and sending you some money regularly?

Lastly, if you spend some time here on CT, and follow along these threads, you will learn that these guys are successful business owners. You can learn a lot about how to run your business, and how NOT to run your business.

They will also give you advice that might be hard to swallow, but it is what you need to do. You won’t get any sympathy or slack.
I have no issue with the lawsuit, that is the only recourse he has so I accept it and told him so. I did the deed, can't be mad he acted as he did. Am not asking for advice as to what I should have done, for I now know it my question involves the lawyer issue. I will pay the sub so lets not waste time on that, but how do I handle this issue best relating to the surety company is my question.
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Old 04-18-2019, 04:39 PM   #20
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Re: Subcontractor Lawsuit


Ok, So I will take back what I said about Seaside, unlicensed hacks and so forth. And, I'll tone down what I said about stealing and lying.

Based on your continued posts, it looks more like you gambled and lost. By what you have said, you anticipated getting paid at a certain time, and, you diverted money that should have been paid, to other projects.

However, your bet that you would get paid by a specific time didn't happen. Based on my experience, it never happens. Regardless of any contract, hand shake promise, notarized docs, whatever, it doesn't happen. Don't count on your payment being the exception to the rule.

As others have said, call them up, meet face to face, admit you don't have the money, work out payments .....and interest if necessary.

The fact that the other party has taken the time and expense to file a lawsuit means that this has not been a sudden, overnight issue.













Quote:
Originally Posted by cwatbay View Post
I think that KAP may be right about the one post wonder. No history, no profile, joined today to profess his sins of stealing the money and avoiding payment.

I know where this guy is, I am from a neighboring city. The city the OP hails from is, well..."low rent"..if you get my drift. There is a lot of "fly by night" unlicensed work that goes on all through that area. Not that it doesn't have some good points.....like some cheap gas stations as long as someone guards your car while you fill up.

Nonetheless, CT is not a good confessional. Admit it OP, you "f'd" up, you took money that belonged to someone else, and you avoided them when they tried to contact you to get answers or work it out. I would hate to think that this is your normal business model.

Easter Sunday is coming up. Go to church, confess your sins (like stealing and lying), then call the guy up and work out a plan.

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