Whether part of a new development project providing homes to a community or doing remodeling work for an individual, deposits are often expected for bigger construction projects and new homes. But what happens when the developer fails to finish your project or even worse, start construction on your new home or renovation after taking a large deposit from you?
Legal remedies are available when the other party does not honor the agreement. These remedies are generally available through a civil lawsuit, often based on contract law.
What are common legal grounds to recover a deposit?
Those who have yet to receive the payment they are owed can use contract law as well as allegations of fraud. In addition to recovering the deposit, when the other party receives the benefit of the contractor’s labor or materials but refuses to pay, the contractor may also use an argument for equitable remedies such as unjust enrichment to recover the reasonable value of services provided.
What kind of evidence do I need for this type of case?
In the best case scenario, you will have a copy of a written contract that outlines the terms of the agreement. If this is not available, gathering copies of all communications can help to support your claim. This can include emails, text messages, and transcripts from voicemails. It is also beneficial to have a copy of the proposed timeline and any paperwork regarding permits and inspections.
Organize any receipts related to materials for the project as well.
What are the steps to move forward?
Legal action in these situations generally begins with a formal demand letter. This letter generally explains the dispute, cites contract provisions, sets a firm deadline and requests documentation to confirm the individual will move forward as planned. If moving forward with further action in Palm Bay, the proper venue often sits in Brevard County court. The amount in controversy will control whether the next steps move forward with the county court or circuit court.
It is wise to prepare for the other party to fight back. A common attempt involves the argument that the developer cannot pay their contractors due to an “act of God.” Although there are situations where this may be true, it is important to push back and make sure the developer is not abusing or misunderstanding the limits of this argument. An attorney with experience in this area of law can review your case and provide guidance, better ensuring you receive the payment you deserve.