Legal Question in Construction Law in New Jersey
I had a flooring company give me an insurance claim estimate he worked with ins co. and got amount approved then told me to sign a contract to handle all contacts with ins co. Then we received check in both names and he says he wants Half the amount and I can go elsewhere to contract the work. I am so taken back by this I want nothing to do with this contractor. I am willing to give reasonable amount for estimating and knowledge of ins claims but not 1/2 contract states once work begins he is entitled to all proceeds but job has not started at all and check in both names has not been deposited.
3 Answers from Attorneys
You have an insurance claim for floors? the contractor wants you to go to another flooring company for the work and he wants half of the money....for what? that sounds like fraud or at least very very wrong. Please do not give half of the money to this flooring company until you know for sure what is going on. Get some advice before you take any action.
You are a long distance from my law office, but I will help you if you like. Give me a call, make an appointment to come see me, and I will go over this with you, and give you some advice.
Robert Davies, Esq. 201-820-3460
My contact information can be obtained from the links below, just click on the Attorney Profile link. Let my secretary know you found me through LawGuru.
Disclaimer: This answer is based only on the statements you have made. Your question and any response does NOT create an attorney-client relationship between you and this law firm. You can not rely on the statements made by an attorney given over the internet. The exact facts of your situation, including facts which you have not mentioned in your question, may completely change the result for your situation.
No one gets half the value of a contract for giving an estimate. Do not participate in this. It may involve you in insurance fraud which is a very serious matter. Start by getting an estimate from several other flooring companies to do the work. When you have other estimates in hand, contact the insurance company's adjuster and explain the situation. If you return the check you have, I expect that the insurer will issue another check to your selected contractor.
The reason why the insurer issues the check in both names is that it wants to ensure that the work actually gets done. If you divide the money with the first contractor, that defeats this purpose and could be held to be a fraud on the insurer and could possibly affect and mortgages on the property.
If you have any questions, please consult an attorney.
/p/ See also: http://info.corbettlaw.net/lawguru.htm
Line up another flooring contractor. If the price they give you is more than the check, explain what the insurance company is paying you, and ask them to do it for that amount. If they agree IN WRITING, and you sign and contract for the work, then go back to the insurance company, and ask them to re-issue the check in your name, or your name and the new flooring company's name. S___w the first flooring contracotr, they are rediculous! They negotiate with the insurance company to get the buisiness, you owe them nothing!
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