Legal Question in Business Law in New York

Re: estimate for kitchen repair

This is an area of the law I find very troubling.

Art. 36-A of the NY Gen. Bus. Law requires home improvement contractors to have a written contract (not merely an unsigned estimate). The statute was designed to prevent consumer fraud - exactly your case.

You can actually sue (or counterclaim as the case may be) for a civil penalty of $500 for the contractor's failure to comply with the law, plus any damages you sustained as a result.

The reason I say this is troubling is that the statute only precludes the contractor from suing on a breach of contract theory. An implied contract theory will also be barred. However, there are many cases that provide, notwithstanding the noncompliance with the contract, the contractor can still sue on a quantum meruit basis. That simply means that he can sue for the reasonable value of the service provided. So, what good is the law if it has no teeth? A smart lawyer who does his or her homework will find this loophole.

My recommendation is to contact the NYS Attorney General's Office and report the contractor. If they conduct an investigation, it may scare him off and they may cause him to back down. There is no guarantee the AG will get involved, but if they do, you may be able to avoid hiring a lawyer, and it is much scarier for the contractor. In any event, the statute specifically provides jurisdiction and authority for the AG to prosecute these types of cases.

Please keep in mind that the answer above is based only on your brief description with no knowledge of any specifics, the language in the estimate, etc. Consultation with a lawyer who can review all relevant documents and correspondence would be most appropriate to obtain the most complete and accurate legal advice.

Best of luck!

Re: estimate for kitchen repair

While Mr. Simon has given a creditable response to your inquiry, he has left out two important items.

First, the NYC Department of Consumer Affairs right downtown is available to resolve exactly your issue. The DCA is responsible for licensing Home Improvement contractors and DCA's Administrative Law Judges are well-versed in construction matters. In addition, they tend to favor consumers like yourself.

Secondly, Mr. Simon assumes that there was no written estimate. Contractors sometimes use written estimates as their contracts. So there may very well be certain terms on that estimate which dictate the parties responsibilities.

In any case, don't go in front of any administrative agency without consulting a private attorney first.

Hope this is helpful.