Paid $2079.00 on a $3,179.00 total job repair. Fired contractor after finding out he paid for personal items rather than on materials for my job in which he could not complete because he spent the money. He's threatening me with a lien. Hired another contractor to finish job which is costing me more money. What are my rights as a homeowner?
Precision in an answer for these types of issues are difficult by e-mail. Let me give you these broad guidelines, if the contractor breached the contract, and your out-of-pocket increases, then the original contractor is liable for the reasonable difference between the contract price and the actual, reasonable cost. The contractor will probably claim you breached the contract by firing him. If he was not timely working the job or had to ask for more money to buy materials for which you had paid, you probably had good grounds to fire him. If he files a lien, you can either 1) wait for the limitations period to expire for a homestead for one year; or 2) sue to remove the lien. If you sue for damages, you could bring the suit in Justice of the Peace court in the precinct where the contractor resides.
I generally concur with the analysis of the law provided by the other attorneys. Rather than reiterate the same legal precepts, I will give you a practical approach. First, you should always thoroughly investigate the background of any contractor with whom you anticipate doing business. I say this because unfortunately there are many "fly-by-night" contractors out there who are willing to take your money. Even if you have a valid legal claim against the contractor, you may not be able to recover anything from him. We call this "judgment proof." You may not want to spend additional sums with an attorney when your chances of recouping the funds are only minimal. Moreover, my experience with such contractors is that they are usually all talk and no action.
With respect to his threat to file a lien, if the property is your homestead, I seriously doubt he has taken the steps necessary to have properly perfected lien under the Texas Property Code. Without an enforceable lien claim, the mere filing of a lien affidavit does not improve his position. As others have stated, the lien claim becomes unenforceable as a matter of law after the expiration of one year if no action is taken by him to enforce the lien. My advice is that unless you are intent on selling or refinancing your homestead in the next year, just ignore it.
However, if you need peace of mind or it is matter of principle, then hire an attorney to take the steps necessary to have the claim declared invalid or unenforceable, but just understand you may not get back the money you paid to the attorney.
Good luck. I hope this helps you. See more info on my website: www.trflienlawyer.com
