Legal Question in Business Law in Michigan

I recently completed a job for a firm in Detroit. This was a contract posistion in which I had 3 different contracts. The job was funded through the Detroit Housing Commission via the federal government (hud). This firm claims they were backcharged by two different drywall companies and is passing this on to me. One of the contracts was for carpentry work, one was for 6 concrete basement floors and the last one was for concrete site work. Now the contractor had these companies do so called repairs ( all friends of the contractor) and are charging me 3 times more for repairs than was the total drywall package. this company bankrupt me and i'm in fear of losing my home. I have a wife and 5 children and was depending on this money. can they just take what they want? Do I have any recourse at all to get what I worked for and are they committing fraud through the bidding process which friends got the bid for the work? And is it legal for them to tell me what price I can do the job for or I don't get the contract.


Asked on 11/25/09, 1:00 am

1 Answer from Attorneys
Audra Arndt Audra A. Arndt & Associates, PLLC

It depends on the terms of your contract with the firm. Have you reviewed the terms of your contract and specifically the compensation provisions? By "charging," you, do you mean a deduction from money that you were supposed to receive, or are they attempting to collect from you? If they are just attempting to collect or asking for a refund, then they would have to sue you to obtain the money, and they can't collect money that you don't have. You need to retain a lawyer to review your contracts, determine exactly what the company did and whether it was proper, to provide you a thorough analysis of your rights and remedies. You won't know if they are scamming you or committing fraud until a lawyer obtains documents - whether before or after filing a lawsuit.

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Answered on 12/08/09, 1:41 am


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