View Full Version : Can a contractor sue for money made after his license expired in NY?
handburger
Mar 5, 2010, 10:03 AM
A contractor did work in my home. His license expired soon after we had signed a contract, but before he actually began the work. He never completed the project, but worked sporadically over FOUR years with no plans or permits. He was paid for his work, but now is trying to get more money. As a license is required in my municipality, I'm wondering about his right to lien or sue.
smoothy
Mar 5, 2010, 10:14 AM
In most localities... his is in gross violation of the law operating without a permit. Not to mention the local zoning laws by not getting required permits. He is opening himself up to a lot of trouble. How much will vary state to state... but I know in VA and MD he could potentially face jail time or at the least large fines. I know someone who had this happen to them operating in a State they held no license to work in. Around here you can cross three different areas in 15 minutes time so its not hard to do.
Fr_Chuck
Mar 5, 2010, 10:15 AM
Yes he has the right to sue, his not having a license can be used as a defense, but may or may not be viewed by the court as a factor. Proof he was paid for his work and/or did not fisnish the job contracted for will be the main defense
You in return can report him for not having a license and/or permit
** but, the homeowner is responsible for the permit, so unless the contract said he would provide permit, the issue of not having a permit is the homeowners fault, not contractors
smoothy
Mar 5, 2010, 10:27 AM
yes he has the right to sue, his not having a license can be used as a defense, but may or may not be viewed by the court as a factor. Proof he was paid for his work and/or did not fisnish the job contracted for will be the main defense
You in return can report him for not having a license and/or permit
** but, the homeowner is responsible for the permit, so unless the contract said he would provide permit, the issue of not having a permit is the homeowners fault, not contractors
The fact it has taken 4 years and still isn't completed... tells me he is on shakey ground. Yeah he can try and sue you... but I would #1 turn him in for operating without a license, make sure the court is aware of this... and countersue him for the money paid for work that after 4 years still remains incomplete. You may need estimates from other contractor to put a cost to complete the work... which can be leveraged against him and what has been paid thus far.
Read your contract well, it will usually say if they get the permits... Here in VA its standard practice for the contractor to file for the permits. But it can't be assumed they are responsible to do so in all cases.
I would consult a lawyer local to you. Take the contract, detailed photos... and any corespondence from this contractor with you.
If he has no license... he also has no insurance. So if he burns down your house... or injures himself on your property... guess who gets screwed? Right, its you, not him. He could end up owning your house in that case.
I'd turn him in NOW for operating without a license. I'm sure he's not paying the required taxes... etc. And I have heard how money hungry the tax people in NY are. Those are all things that can work against him IF he tries to sue. And he may even forget about you dealing with the costs and lawyers fees fighting that. I know MD is very aggressive in these cases.
But quite honestly. Full payment is not expected or reguired until the acceptable completion of the work once the deposit is made... which usually covers the cost of materials. The balance is usually what they make on it to pay themselves and other costs.
Personally. I'd take him to court... for breach of contract. Four years have passed, the work is still NOT complete... and he's demanding more money?