Legal Question in Construction Law in Minnesota
Verbal agreement - now claim it was a mistake
Good afternoon - I needed to upgrade my new St Paul home's electricity from 60 amps to 100 amps, but 2 electricians said that if I upgrade one item of the house, the city inspector would require me to upgrade everything - a very expensive proposition. The 3rd electrician, from ''John Doe Company'' said that he was not familiar with St Paul, but he thought that he should just upgrade what I needed (about $1200), and then we'd see if the inspector required anything else. I hired the electrician, and he upgraded the house, but the inspector, as I predicted, required another $1400 worth of work. I was then surprised when the dispatcher from ''John Doe Company'' called me and said that because the inspector required more work, and because they were so unfamiliar with St. Paul's inspection regulations, they would do the extra work for free! I was very, very pleased, and then spent the money I had saved on a car repair. But today the electrician called me and said that the dispacher made a mistake, and the rest of the work would cost $1400. Can I hold ''John Doe Company'' to the verbal contract I had received from the dispatcher?
1 Answer from Attorneys
Re: Verbal agreement - now claim it was a mistake
The argument in your favor is that you relied on the promise by spending the budgeted money on something else. Such reliance, even if it does not create a contract, might be enough to "estop" the electrician from later claiming payment. However, the electrician has an argument also in that (a) you were required by law to do the work anyway and would have been cited by the City if you hadn't done the work, and (b) you basically have received a $1400 windfall. Finally, there will be an issue as to the dispatcher's apparent authority to make a deal that is binding on the company.
Bottom line, as I think this through, both sides have some merit to their arguments...the legal outcome would be questionable and I would suggest working out a settlement here.
Hope that helps.
Standard disclaimer: The comments above are based on limited facts and should not be considered legal advice. We do not have an attorney-client relationship.
That said, good luck to you!
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