Legal Question in Business Law in Louisiana

Breached Contract

I own a small roofing company. Jan.11, 2003, I entered a contractual agreement with a customer. Jan.15th he sent a fax stating there was no rush on the job. On Jan.18th he wrote a check for 50% of the total bid to secure materials. Jan.21st I cashed the check and Jan.23rd I purchased the materials. I notified the customer that the roofing crew would begin working the morning of Jan.24th. At that time he stated that he had decided to go with another company. I notified the customer that the material had been purchased and that he would be breaching the contract because payment had already taken place. The customer refused delivery of the materials. I didn't refund the deposit amount because of the time alloted to the customer and the loss of other contracts because of the scheduling of his repair job. I now have a warrant for my arrest for Fraud and Theft. I have in my possession a copy of the contract, check, fax of his statement, and the reciept for payment of materials. My question is whether or not this is a criminal case or civil case? Is this warrant legal? What can I do to rectify this issue and have this warrant lifted? Please Respond as soon as possible!


Asked on 2/21/04, 6:29 pm

2 Answers from Attorneys
Nick Pizzolatto, Jr. Pizzolatto Law Office

Re: Breached Contract

There is a specific statute that makes it a crime to apply payments made by a customer to a contractor to "anything but that customer's job." Although every small contractor I know co-mingles funds, it is against the law. Call the local law enforcement agency who let you know they have a warrant, and tell them you have the materials AND a receipt showing they were purchased for THAT customer, or that you have a combination of the materials and any extra money, OR all the money if you turned the materials back in or used it for another job. Your recourse is civil in nature for breach of contract. Criminal action is often a way for a customer to "rationalize" choosing another contractor who may be cheaper than the one they originally contracted with. If you have done nothing wrong, and the warrant is executed and you are exonerated, then you have an additional cause of action for malicious prosecution. That also is civil. However, if the customer lied to get the warrant issued, then he faces possible criminal charges. Go see an attorney.

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Answered on 2/23/04, 8:06 am
Steve LeBlanc Steve LeBlanc, Ltd., (APLC)

Re: Breached Contract

If there is a warrant for your arrest, obviously, there is a criminal component to your case. I recomend you consult an attorney, however, you may want to contact the law enforcement agency that issued the warrant and send them a copy of everything you have. Civilly, I would consider the payment he sent you "earnest money" which he forfeited when he decided to go with another company, unless your contract provided against any deposit being considered "earnest money". I assume you returned the materials and received a refund on these. Again, it would be wise to consult an attorney.

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Answered on 2/22/04, 10:15 am


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