What would you do?

Well, I am in the process of having another property built in the US (MCO). Due to water permit problems the builder has not been able to progress for 18 months. We just got all of this sorted (The builder meanwhile has been earning interest on my $50k). The builder emailed 2 weeks ago asking if I could move lot due as he wanted to build a larger property on the next lot and needed two lots to complete the build. As no incentive to move was offered and contracts were already in place I politely declined. A week later I had another email from the builder cancelling my contract due to a breach in the contract (A clause that states I have to have confirmation of my mortgage within 90 days of contract signing). The issue is that the lender will not confirm anything other than an agreement in principle until the builder has installed the infrastructure (roads, drainage, power and water) which still has not been done.

Not only has he cancelled the contract but is deducting $5000 liquidated damages and to top it all the houses are now being sold for an extra $50k on top of our agreed price.

So having spoken to an attorney who says we haved a case to reclaim the $5k, plus should we wish attempt a claim for damages for the $50k increase in sale price, but the problem is that it will cost $7500 to take it court (roughly) which is reclaimable if sucessful, but not if an out of court settlement is reached.

The last problem is that I have to be present at the courthouse for each hearing.

I am so mad, but please let me know what you would do?

Paul

[Scrooge]

So the bastard

[mcmbenjamin]

Originally posted by jetwet1
So the bastard

I'd sue the bastard too. [y] The whole switching lots things seams silly. They just had another client who possibly would be more profitable which does not release them from their contract with you. Down with them. Write letters to the editor of local paper. And wite the Better Business Bureau of your area the house is in. The company has to reply to BBB letter.

I'd be going after him!!! Having to attend in person sounds like a good escuse for accumulating a few more miles.... [:?]

Good luck, I hope he gets what he deserves if you choose to take him to court......[}:)]

Sue him!!!

The BBB thing sounds like a good idea

Good luck and I hope it all works out for you

Jon B

Yep - Sue away!!

Im no an expert on US law but surely there is the possibility to appoint an attorney to stand in for you as your legal representative - not as much fun as going to MCO of course - but if you are only needed for an hour here or an hour there every so ofetn then its going to become uneconomic??

Good luck anyway and let us know how you get on!![y]

Surely your contract with him is to have him build the property on the plot you chose? Isn't the breach on contract on his side????

Knows nothing about US law, and precious little about UK....[:0]

I'd sue too. In business at the moment we are doing thing about Laws of contracts. I think the main part of the contract that would be usefull to you is the Intention to contract.

In the intention to contract "the people involved want to make a legally binding agreement so that if something goes wrong, they will be able to go to court and get the sitution sorted out". I'd say use this part of the contract and clean the builder out

Again , another who isnt an expert (just a viewer of many US legal dramas [:I])...
Do you know anyone , or have a way to contact anyone, in the same development.
Given the increase in selling prices - would be interesting to know if the builder is trying to push others out with the same clause in an attempt to make more money on the development.
Especially if your breaching of the contract was actually the builders fault - surely that actually makes the builder negligable?
In which case it would clearly be in the builders interests to do the same with everyone whom he`s been holding onto $50k for for 18 months! Not only does he try & walk away with the interest made - he gets to return your money, charge $5k and sell the same plot for more money!
From what youve written, it looks like borderline fraud to me (again, maybe just too much TV)... he wants to move you plots in order to build a larger house on a double plot (presumably to a new buyer for much more $$$ in same development;)). On top of that house prices are up $50k, not to mention builder making circa $10k between interest & liquidated damages... smells funny to me[:$]

BBB sounds like a good idea - although might be best to ask an attorney if he thinks a letter to the BBB would be a help or hinderance were you to chose to go to court.

Is it possible to have a lawyers letter sent to him, informing him of your intent to take the matter to court etc. ? A nicely laid out letter from your lawyer showing your likely to win the case (and substantial damages) might be enough to reverse his decision & avoid the court costs - downside I guess is that you dont want to present him with all your evidence incase you do have to proceed to court.

Failing that - you must surely be entitled to at least claim back the interest (if not also a fee?) from him for holding onto your money... Off the top of my head... 5% (which you could have easily had in the UK) would be approx. $3750 over the time.... He presumably makes no mention of the interest he's made whilst holding onto the deposit.

[preiffer]

Are there not any "no win, no fee" lawyers there Paul?

As williestott's mentioned, I think I'd be asking others involved in the development if anything similar has happened to them. A few of you suing the same guy would be a lot more likely to succeed (and a lot more attractive to a no-win/no-fee lawyer...)

Thanks for all of your comments. Glad to see you are all in the same mindset as me. Just to answer a few of your questions:
- The builder has openly admitted in person on many occasions that he is wanted people to pull out so he can see for more.

- I did ask about an attorney to stand proxy for me at court but apparently the judge does not sit unless all parties are present. That makes me think that once a date is set I arrange to travel there and the builder just doesn't turn up. Everything get delayed again.

I now the law is on my side, but the builder is obviously trying to make life difficult for me and will probably continue to do so.

I did think the travelling would let me rack up the miles, and with the right attorney I could claim back all of those costs also.

Paul