Suing a Builder For Fraudulent Practices
Building a new home or undertaking a major remodel of an existing one can be exciting. You enjoy picking out new flooring and fixtures, searching design magazines for inspiration, and daydreaming about the final results.
Then something goes awry. You, as the homeowner, begin to have suspicions about the builder’s character, the references they supplied, or the quality of work they’ve provided. Construction stops, the contractor threatens to file a mechanic’s lien, and both of you are frustrated. You may be wondering; what happens if a builder breaches contract? What recourse do you have against a homebuilder?
Can You Sue a Builder for Negligence?
Suing a builder for negligence is a legal option in specific situations. Negligence, in legal terms, refers to a failure by one party to exercise reasonable care, leading to injury or damage to another party. It’s important to note that negligence is distinct from intentional misconduct by the builder. To take legal action against a builder for negligence, homeowners should be aware that there are time constraints set forth by the Right to Repair Act, which may affect the course of legal proceedings.
Most property owners expect contractors to be professionals who apply their technical expertise to safely craft a structure or project that meets contract specifications and applicable construction codes. This concept is known as the “duty of care” — it affords some protection to the homeowner and possibly even subsequent property residents. When a contractor does not exercise the proper care — thus exhibiting negligence — it can lead to financial loss, workplace injuries, and structural defects.
Whether it is hasty execution, lack of research, or simply lazy performance, there are several circumstances where negligence could lead to defects, including:
- Design defects: These defects arise from inaccurate or poor construction plans. If the original design contained errors known to the builder and allowed construction to proceed, they may be held liable for resulting costs and damages.
- Work defects: A builder can create these issues by failing to produce an end project adhering to construction codes and standards. Doing so can create foundation issues, poor aesthetics, and structural instability.
- Material defects: Material defects occur when a builder incorporates damaged or unsuitable components or materials to finish a project. When the builder knew or should have known that the materials failed to meet acceptability standards but proceeded with their use, the homeowner may have a viable claim against the builder.
Other possible claims for negligence could arise from:
- Failure to obtain required building permits.
- Accidents on the property resulting from a failure to secure the construction site or properly use the equipment.
- Other negligent behavior.
Successfully establishing negligence can be a complex and challenging process, reinforcing the need to consult an experienced legal professional like Calabrese Law Associates.
Common Reasons for Suing a Builder
Aside from negligence, homeowners may have other reasons to pursue legal action.
1. Fraudulent or Deceptive Business Practices.
It may also be possible to sue a builder for fraudulent or deceptive business practices. In general, proving a claim of this nature involves establishing that:
- The contractor misrepresented material facts — facts a reasonable person would find essential to making a wise decision.
- The builder engaged in deliberate misrepresentation or should have known they were making false statements.
- The contractor misrepresented facts with the goal of influencing a property owner’s actions or decisions.
- The homeowner reasonably relied on the information the builder supplied and experienced damages or loss.
2. New Home Builder Breach of Contract.
Before you can bring an action for breach of contract, you must prove several things, including:
- The existence of a valid and enforceable contract: Generally speaking, verbal agreements are challenging to establish and support, so this option tends to work best with written contracts.
- The builder failed to comply with the contract: You’ll likely need to provide adequate documentation of what provisions the contractor violated and how.
- You incurred damages as a result of the breach: Again, you typically need to demonstrate acceptable evidence of what damages — financial or otherwise — you faced as a result of the builder’s breach.
3. Violations of Consumer Protection Laws.
In Massachusetts, consumer protection falls under Chapter 93A of the Massachusetts General Laws and extends to construction projects. This chapter protects the homeowner — the consumer. Under this chapter, a builder can face steep penalties if found to have engaged in unlawful, unfair, or fraudulent business practices.
For example, a contractor may be held liable for double or triple the homeowner’s evidenced damages plus any applicable attorney fees and costs. Faced with such outcomes, it’s often possible for experienced attorneys to negotiate favorable settlements.
Contact Our Home Builder Attorneys at Calabrese Law Associates
A legal professional with construction and contract expertise is the best source of guidance and advocacy. Calabrese Law Associates is the solution for industry-leading legal representation for affordable fees in the Greater Boston area.
When you partner with us, you have compassionate and responsive attorneys who make your best interests our priority. We’ll give you top-quality legal advice and explore options for out-of-court solutions to help you save time and money. If litigation is necessary, rest assured you have an experienced lawyer on your side to help you navigate the process.
Connect with us by calling 617-340-6623 or submitting an online information request.
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While Calabrese Law Associates does offer legal help for landlord-tenant disputes, it is extremely rare that we take on these cases. Only about 1% of tenant-related cases and 10% of landlord-related cases will be considered by our law firm.
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