Legal Question in Consumer Law in New Jersey

Hello,

We hired a bathroom remodeling company to remodel our bathrooms. We paid a deposit but didn't hear back from the company for some time. When we finally heard from them, we were told they had been "bought out by the parent company" (turns out the franchise went bankrupt) but the parent company would take over and everything would be worked out.

We were concerned since we hadn't met or sat down with anyone from the parent company (headquarters not near us) and requested a refund of our deposit so we could evaluate/renegotiate. The parent company told us they could not refund our deposit and that we'd have to get it from the (bankrupt) franchise by going through a lawyer.

The parent company, meanwhile, offered to complete our job for the fee we agreed upon with the franchise, including a credit for our deposit.

We need to get the work done and feel we cannot afford to lose our deposit (we're actually only being offered a credit and not a refund.)

If we proceed with the job (the parent company arranged for another franchise to do the work, though some of the details are of slightly less quality than the original deal), do we still have the right to pursue recovery of our deposit from the bankrupt franchise?


Asked on 9/21/09, 6:27 pm

1 Answer from Attorneys
Daniel Silverman Alan H. Schorr & Associates

I don't understand your question. If the parent company is willing to do the work for the same price and is willing to credit you for the pre-paid security deposit, why do you want your security back? You may want to check and see if the local company actually filed bankruptcy or if they are just claiming to. Additionally, there are strict requirements for the manner in which contractors conduct business. If they fail to abide by these regulations they can be held liable under the Consumer Fraud Act which can result in treble damages and attorneys fees. At the moment, however, you do not appear to have any loss or damage if the parent company is going to complete the work.

Good luck.

Read more
Answered on 9/27/09, 2:56 pm


Related Questions & Answers

More Consumer Law questions and answers in New Jersey