Home Contractor vs. Homeowner

A couple of weeks ago I was having lunch with another attorney, and I was lamenting about the fact that clients have such a difficult time understanding legal fees. The public tends to think that all lawyers set out to take advantage of their clients and charge inordinately high hourly rates without justification. Nothing could be further from the truth for most attorneys. The moment a client calls, the first thing I do is determine whether their claim merits the involvement of a lawyer, and whether the ultimate recovery will exceed the cost of pursuing the case. We attorneys recognize that most disputes ultimately come down to money, and the goal is to end up with the most money in your pocket, or prevent a payout on your part. There are really very few situations in which you will recover your attorney's fees. Even though most of the claims I file on behalf of homeowners will entitle them to attorney's fees, when it comes to settlement, they are rarely included. Most (in my c...

The other day I posted on the usual procedure for bringing a claim against a contractor. Today I am focusing on what the contractor should do when bringing a claim against a homeowner. Some of these steps specifically apply to Massachusetts law. 1. Make sure you have a good contract that is in compliance with your state law . In Massachusetts this means complying with the Home Improvement Contractor Act, M.G.L. c. 142A. Keep in mind that you cannot collect attorney's fees in MA unless you include that provision in your contract. Decide whether you want an arbitration and/or mediation clause in your contract. 2. Make sure you are registered with your state, if required. 3. If the homeowner refuses to pay, file a mechanic's lien. Remember that the law regarding mechanic's liens is very specific and it is very easy to fail to do it properly. 4. Write a demand letter to the homeowner with a clear explanation as to why you are owed the money. Give the homeowner a chance to say w...

This posting is from David Leavitt, who is developing a television show to mediate home renovation disputes. Anyone who is interested should contact David directly. This sounds like an interesting way to resolve disputes without pursuing litigation: I am casting Homeowners and Contractors for a home renovation dispute mediation and resolution TV show. The scope and breadth of the dispute can range from any of the problems you usually see including, but not limited to, type of work, budget, build problems, personal problems, and homeowner changes. Since we are a television show, we MUST complete the project in a relatively short amount of time (about 6 days), which will fit nicely with the needs of a homeowner and contractor. This means we seek projects that are large enough in scope to show a good before and after experience, and small enough in scope to be finished in no more than about three weeks. Some examples would be a kitchen expansion, new room, bathroom remodel, garage build...

Even though every client's claim is different, there is a common approach to most home contractor/homeowner disputes. Clients want to know the big picture and the pros and cons of the options available to them. From the homeowner side, the steps to take are fairly consistent: 1. Send a demand letter -In Massachusetts, any violation of the Home Improvement Contractor Statute is a per se (automatic) violation of the Consumer Protection Statute, M.G.L. c. 93A, which affords one the possiblity of double or triple damages, attorney's fees, interest and costs. In order to comply with the requirements of 93A, one must write a 30-day demand letter describing the unfair and/or deceptive practice that has occurred and making a demand for damages or action on the part of the contractor. 2. Evaluate -Evaluate whether there has been a response from the contractor and see if settlement is possible. 3. File suit or file for arbitration -In order to file suit, determine the likelihood of succ...

http://www.thebostonchannel.com/video/15284867/index.html The Boston Channel ran a story about the current economy and how it has affected contractors.