[lizgala]

I am a home improvement business with a perfect credit rating and customer service. Someone I did a roof for 8 years ago had what is obvious storm damage this last January. Her homeowners insurance, state farm sent a so called inspector who said the work was improperly done. They made a report that is filled with inaccuracies. They as a result would not cover structural damage but did cover damage inside because there was no rotten wood indicating a short term leak. Now they are going after my company for the $4700. Again, this was done 8 years ago. I have sent them lots of paperwork showing that their report is completely inaccurate along with original contract, work order and other info. No one has even read it or returned my call, they just have sent it on to collections and I know that they are setting me up to pass a judgement. I don't know how to proceed. I don't want to wait until that happens. I"d rather not spend money for a lawyer if that is possible

[ScottGem]

They have to file suit against you. This would probably be small claims court, but may not. You can try going pro se but they will have legal representation.

Don't you have liability insurance to cover you in such circumstances?

[Fr_Chuck]

Yes, you need to turn it over to your liability insurance company. The other, you deny owing it, don't talk to collections on the phone.

[lizgala]

If I make a claim on my insurance they will drop me and nobody else will insure me afterwards. I need the insurance for my home improvement license. Besides that they are wrong in their assessment of the roof. They don't mind taking their insured's premium but would rather I pay for what should be their expense. What is the problem about talking to the collections company? I'm not giving them any of my info--just discussing the roof situation. Thanks for the responses---I appreciate the input

[ScottGem]

Because, the collection agency has no power to do anything here. Your stance is that you owe nothing therefore there is nothing to collect. That's what you tell the collection agency. This could simply be a ploy on the insurance company's part to scare you into paying.

As for reporting it to your insurer, what good is insurance if you can't use it. Yes, I know you claim you need it to keep your license. But if you have never had any claims, they shouldn't drop you for using the insurance you pay for. But that's your decision.

If you don't use your insurance, then you go to court and fight it. Or you try to settle with them as a nuisance suit.

[lizgala]

Thank you for the advice. How would I proceed to go to court? What is a nuisance suit? That sounds appropriate for this situation. All details will be so appreciated--thanks again

[lizgala]

One last question is if I have to hire a lawyer can I countersue them for the cost?

[ScottGem]

Countersue is probably not the right term, but if you lose the judge can award you court costs. You can probably get a free consult with an attorney who can let you know about that.

[lizgala]

How would I go about going to court? What is a nuisance suit because that sounds about right? Do you know of any local attorney's that have a free consult in the area (nassau county, ny)? I will also check the yellow pages. Thany you again

[excon]

How would I go about going to court? What is a nuisance suit because that sounds about right?

Hello liz:

A nuisance suit will be recognized as such and quickly dismissed. I think you have a REAL suit, if that can be distinguished from one that is only intended to be bothersome...

Now, I don't know exactly HOW your attorney may frame your suit, but you ARE suffering damages at the hands of the insurance company AND/OR your previous customer. I think Scott is right about using the resources that you're already paying for, but like he says, that's your decision.

You might think twice about it, though, when you realize the COST of defending yourself and the extent of the damage they might be causing you... Have you considered what this case means to your FUTURE billings?? I'll bet not. Plus, if your professional ability is being challenged, and you DON'T include your insurance company, they might drop you anyway. If I were them, I'd wonder what you're HIDING.

This is not a time to use a flyswatter.. I'd use a CANNON.

excon

[ScottGem]

YOU don't go to court. You wait until they actually file a suit against you. Until then you don't owe a thing.

If they do file, then you defend yourself, with proof that your work was up top standard.

A nuisance suit is generally one where their case is very weak and they are filing in the hope of getting a settlement. Not sire if this is one or not. But, excon is right, it may cost you more to fight then to settle.

[lizgala]

I am insured as a window company so my insurance is not going to cover this even if I wanted to go through them. Because of this insurance company's inaccurate report my old customer from 2003 took me to small claims court for her damage and lost the case. Statefarm sends an outside roofing company to assess the roof and they also get to bid on the job--yes. In the report is a picture of their inspector bending up the end of the shingle on the house and he labeled the picture as the roof having one layer of roofing. We were contracted to do reroofing 8 years ago so there are two layers on the roof. This is the quality of the report. In addition, they refused to cover the roof structure for the customer based on this report but they did cover the inside damage because there was no rotten wood indicating short term leaking. That doesn't even make sense with their assessment since if the problem was faulty work it would have leaked before 8 years have passed. In addition, I printed out the weather report for the preceding time and there were 2 nor"easter snow storms a few days preceding the damage. I don't think they have a strong case against me so why would I have to shell out $5,000. The whole situation is so upsetting and it has taken more than 30 hours of my time between this customers case and the insurance company. It's completely taken away my piece of mind

[excon]

I don't think they have a strong case against me so why would I have to shell out $5,000.

Hello again, liz:

Because being right doesn't mean you'll win. You can't show up to a gun fight with a knife.

excon

[lizgala]

I understand your point and that's why fighting these huge corporations is so difficult but what's my choice? My insurance company is not going to pay and it's better that they don't know about it anyway. I"m not going to just give them the money without a fight. There hasn't even been anyone to even really talk to about my side. If I was really at fault then I would feel fine about paying. What I"m afraid of is that they will sneak through a judgement that freezes my account before I even get a chance to fight this. Is that likely?

[ScottGem]

Again, have they filed suit? If not, you do nothing until they do. If they do, I would look into filing a motion to dismiss on grounds of double jeopardy. I'm not sure how that will fly since it usually applies to criminal cases. But if the customer took you to court and lost, you may be able have the case dismissed since its already been ruled on.

[lizgala]

Whoever told me not to talk to collections was right! Question is if I don't release my insurance information and give my permission for them to file a claim against my insurance can they do it anyway without my okay?

[ScottGem]

Whoever told me not to talk to collections was right! Question is if I don't release my insurance information and give my permission for them to file a claim against my insurance can they do it anyway without my okay?

It depends on your insurance coverage. If you have business liability coverage, I don't think they can, at least not until they win a suit. However, if your insurance covers damages to customer property, then they may be able to do so.

They definitely do not need your permission to file a claim and your insurance certificate should be on file with the county.

[lizgala]

When you say win a suit does that mean pass a judgement or actually win in court?

[ScottGem]

A judgment is not awarded until a court rules on a lawsuit.

[lizgala]

Just to make this absolutely clear--Are you saying that before any kind of a freeze on my account could occur I would be fully aware that a judgement had been passed against me?