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Can a 3rd party subcontractor sue a homeowner?

post #1 of 20
Thread Starter 
Hypothetical legal q...

Conne is a contractor doing an addition to my house, and Conne hires an electrician to do work. The electrician does the work, and comes to Conne to get paid. Conne says, uh no, too bad. Can the electrician sue me for the payment even though I didn't hire him?
post #2 of 20
I guess it's dependant on contracts. If conne signed a contract to pay then he alone is responsible to pay. If it was done on a handshake then the best lawyer wins.
post #3 of 20
In my state there's a very specific procedure the sub would have to follow to inform the homeowner. If he does that the homeowner isn't supposed to pay the general contractor and the sub can get paid out of what's owed to the general. But only what's owed, so if nothing's owed he's SOL.

Not legal advice, just from memory, etc., etc.
post #4 of 20
Privity issues abound, but there is usually legislation to deal with this. In my jurisdiction it's called the builder's lien act. It wouldn't be a lawsuit, there is a series of "holdback amounts" at various levels that are registered against the improvement (ie the property). If someone doesn't get paid (a lot of contractors just go out of business before the job's done) then the subcontractors just go up the chain and collect what the Act says is owed to them. In other words, depending on the law that applies where you are, probably yes.
post #5 of 20
Quote:
Originally Posted by whusurdadi View Post
Hypothetical legal q...

Conne is a contractor doing an addition to my house, and Conne hires an electrician to do work. The electrician does the work, and comes to Conne to get paid. Conne says, uh no, too bad. Can the electrician sue me for the payment even though I didn't hire him?

The following addresses only pure contract law and not mechanic's/builder's liens, etc.

This is a delegation of duties for consideration (in other words, Conne and the electrician agreed that Conne would pay the electrician rather than Conne saying the electrician could collect payment from you). In this hypothetical scenario, the electrician cannot collect from you, he must sue Conne.

BUT, if Conne made an agreement with the electrician that the electrician would do the work and be paid by you, this is a delegation of duties AND an assignment of rights. Here, he electrician would be able to collect directly from you. Of course there is a small complication that the electrician is only doing part of Conne's duties. What if Conne agreed to do the whole addition for $25k and now the electrician is claiming that it costs $26k for just the electrical work? In this scenario, I don't know what happens. I'm assuming he would sue you and the court would make you pay him whatever is reasonable. Then you could sue Conne.
post #6 of 20
Wait wait wait...Conne's a subcontractor? I had no idea.
post #7 of 20
Quote:
Originally Posted by Teacher View Post
Wait wait wait...Conne's a subcontractor? I had no idea.

sounds much more dignified than 'bottom'
post #8 of 20
Quote:
Originally Posted by whusurdadi View Post
Hypothetical legal q...

Conne is a contractor doing an addition to my house, and Conne hires an electrician to do work. The electrician does the work, and comes to Conne to get paid. Conne says, uh no, too bad. Can the electrician sue me for the payment even though I didn't hire him?

What is your jurisdiction?

And for future reference, all legal questions should always include this information. We can pontificate about general contract law all we want but most states have particular statutes that deal with these issues and we can't answer your question intelligently if we don't know where you are.
post #9 of 20
If you include the jurisdiction, the discussion becomes much less academic. I wouldn't participate and I'm sure many others wouldn't either.
post #10 of 20
Thread Starter 
Quote:
Originally Posted by harvey_birdman View Post
What is your jurisdiction?

And for future reference, all legal questions should always include this information. We can pontificate about general contract law all we want but most states have particular statutes that deal with these issues and we can't answer your question intelligently if we don't know where you are.

Maryland, in Baltimore City...where all the crooks come out to play
post #11 of 20
Sub can probably put a lien on your property in which case it makes sense (whether it's correct from a legal perspective or not) to pay them off, assuming they're not asking for a ton of money.
post #12 of 20
Quote:
Originally Posted by Ataturk View Post
If you include the jurisdiction, the discussion becomes much less academic. I wouldn't participate and I'm sure many others wouldn't either.

Yes, but he would probably get a correct answer.
post #13 of 20
Quote:
Originally Posted by whusurdadi View Post
Maryland, in Baltimore City...where all the crooks come out to play

Then the answer is yes, the subcontractor can file for a lien to be placed on the property.

http://law.justia.com/maryland/codes/grp/9-102.html
post #14 of 20
I've never even been to Maryland, but:
As general contractors, we have to give the homeowner/loan holder a lien release before we get our final payment. Supposedly, as I understand it, that ensures that we're on the hook for anyone not getting paid rather than the property owner.

But we've never not paid anyone, so I haven't experienced that part personally.
post #15 of 20
I know a sub can file a mechanic's lien here. Oh; sorry I am late to the party.
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