Legal Question in Business Law in Michigan

African American owners of a million dollar home expected to move in 3 months sh

In June of 1999 my family and I entered into an agreement with a builder of custom homes who said that it should take approximatly a year to complete. It is now close to 2 years from that date and our home is not complete. We belive that we have been dealt with unfairly possibly because of our race. We have been drawn into legal isues because of decisions that the builder has made. There was and is a constant battle to have to have the house built according to the plans for which we a voluminous amount to have done according to our specifications. However the house is being built on the whim of the builder, there are obvious mistakes that have been brought to his attention and he has yet to do anything about them approximatly 2 years after the drawing of the plans specifications. The problem is that we feel that we are not being given adequate treatment as the owners and as the financers of this home. We feel helpless in this situation as it is and wish to seek some sort of legal action against the Builder of these custom homes.


Asked on 1/04/01, 11:55 am

2 Answers from Attorneys

Stephen Scapelliti Law Office of Stephen Scapelliti, Esq.

Re: African American owners of a million dollar home expected to move in 3 month

A contract for the construction of a residence may be enforced just as any other contract for goods and services. The builder can be compelled by a court to perform in accordance with the contract. This would be a likely approach, if the builder owns the land. The lawsuit could seek "specific performance" of the contract, together with other damages which would have been foreseeable at the time of making the contract.

If you own the land, then it might be possible to dismiss the builder and hire another builder to complete the job. If the new builder charges more than the amount remaining to be paid under the construction contract, then a lawsuit may be brought against the first builder for the additional amount which was paid to the second builder to complete the job. Caution must be excercised, however, if an escrow exists for payment of the builder, inasmuch as the escrow agent might be bound to pay only to the first builder.

I would be happy to discuss this matter further with you. This response is not intended as legal advice. Your rights and obligations will depend upon the particular facts and circumstances affecting this matter. You should consult an attorney in your area to discuss all of the relevant facts and circumstances. No attorney/client relationship is created as a result of this response.

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Answered on 1/05/01, 9:26 am
Don Darnell Darnell & Lulgjuraj, P.C.

Re: African American owners of a million dollar home expected to move in 3 month

A contract to build a house is really just like any other contract, and if the builder is not living up to his end of the bargain, he may be in breach of that contract. Your message indictes that you believe that you haven't been treated fairly because of your race, but you don't give specific reasons why you think this is the case - so I would have to reserve opinion in that regard. However, if you have been treated badly or taken advantage of as a consumer you may also have a cause of action against the builder for certain violations of the Michigan Consumer Protection Act.

I just settled a case with almost exactly the same circumstances, but where the builder knew that the family had to move into the new house on a certain date and failed to finish the house in that time. The builder also omitted two windows. We settled for the cost of installing windows, storage costs for the families goods, thier hotel bills, and other nominal consequential damages.

Your case may or may not be as solid as this last one, but probably worth a look if its been an entire year since the builder was supposed to finish and the house is materially different that you specified. You should consult an attorney in your locale to discuss this - one that knows a bit about not only consumer protection but also construction.

I cover Washtenaw, Western Wayne, and Jackson Counties, and would be pleased to meet with you in this regard.

Don Darnell

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Answered on 1/05/01, 2:26 pm


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