Legal Question in Construction Law in New Jersey

Theft by Deception

Entered into agreement with General Contractor in June 03 for 600 sq ft addition. Work contracted to be complete Sept 03. Still not done. I received a summons from one of the subs for non-payment. Also listed on the summons were the GC and 5 other customers. After speaking to other customers, I came to find out that most of these people have bigger problems than me. Some of there jobs are as much as a year and a half old. Here is my question: After speaking to these people I believe that GC entered into contract with no intention on finishing on time, if at all. Could this be considered theft by deception? Is there enough to use RICO Act? These people are making their living off taking advantage of others. What are my options? Can sub get money from me even though I paid GC and have proof of that? These people need to be put out of business, what they are doing is criminal. Where do I go from here?


Asked on 1/25/05, 7:18 am

1 Answer from Attorneys

Re: Theft by Deception

You and the others have claims for: 1) breach of contract, 2) fraud, 3) Consumer Fraud Act violation (treble damages + all costs and fees !!!), 4) negligence, and I could pull out a contractor claim and find another 1 or 2.

You MUAT act ASAP. Chances are you will win $$$ in court, but there won't be any $$$ to collect. This guy also should be reported to the State Attorney General's office. Depending upon the overall picture, all the homeowners 'screwed' may wanto to file suit, and share the costs.

Is this a small contractor? Is there a contract? Did the sub file a lien, or just file suit? What claims did the sub assert?

Lots of questions need to be answered, and 99.9% of the time a homeowner will not be up to pursuing their claims without the help of an attorney - sorry!

After an evaluation, you may decide it will not be worth filing suit. You may need to cut your losses, hire a new contractor and move on - again, not what you want to hear, but you need honest good advise, not revenge!

Kevin J. Begley

PS - I'm a construction engineer, former contractor and project manager, so I concentrate in construction litigation. Depending upon where you are, I may be able to help.

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Answered on 1/25/05, 10:15 am


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