Legal Question in Credit and Debt Law in Colorado

Re: Verbal Contract

Your inquiry raises several questions. I will hit the high points of each.

Your defense to the charges which the sub said he would, in effect, waive, is just that, "waiver". On the other hand, if he did the work and your property was commensurately enhanced in value by the incorporation of the completed work product, his theory of recovery is quantum meruit.

If the work was completed in excess of 6 months ago, the sub has probably forfeited his mechanics lien rights, if he hasn't taken any steps to perfect. Although I don't know the amount involved, I believe the issue of the validity of his, to-date presumably unperfected, mechanics lien rights is largely irrelevant, as a practical matter. A simple suit on the contract is a more feasible recovery approach for the sub in these circumstances.

The issue of your obligation to pay interest [amount and accrual date] will depend on whether the sub has existing valid and enforceable mechanics lien rights, and I won't go into details. It seems to be an inconsequential issue in the overall scope of your dispute.

The fact that there was no written contract is probably of no consequence under the circumstances, other than evidentiary considerations. An oral contract obviously existed.

As to the damage to your property arising from the sub's negligent conduct while working on the neighbor's property, this would constitute a valid set-off to the amount you owe the sub.

As to the damages to a third party's property, ie, the municipality, unless you are deemed to be liable for the negligence of the sub, by virtue of the application of the theory of vicarious liability or other similar theory, the damage to the street is not a factor in your dispute with the sub.

I would recommend that you attempt to reach a negotiated settlement with the sub, and document it in a written settlement agreement.