Legal Question in Credit and Debt Law in Texas

Debt Collections

I am the owner of a small remodeling business. A customer claimed to be unhappy with work completed. Was asked by my company to provide a punch list of items to be corrected. Customer refused. My company attempted to appease customer with work above original contract performed prior to customers refusal to provide a punch list. My company then attempted to settle for an amount of approx. 1/4 balance of contract. Balance of contract is $2000.00 of $20,000.00 remodel job. The homeowner refused this offer. My company sent a letter asking for payment in full upon which a release of lien would be issued and no further amounts would be pursued. Homeowner filed a breach of contract suit with an attorney (there has been no breach of contract). A part of the attorneys letter accused my company of not allowing customer a 3 day period to back out of contract, which is false. The contract was signed in mid-December and an advance in approx. 1/3 of contract was collected and work did not begin until mid-January. How should I respond and what are my legal ogligations. I have never experienced this situation. 18 years in the home improvement business.


Asked on 3/11/02, 5:28 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Debt Collections

You need to hire an attorney. From what you've indicated, it's well past the point where you can handle it safely on your own. The response needs to be carefully crafted, after thorough review of all the particulars.

I can't tell whether you've met all the detailed requirements for the establishment of a Mechanics & Materialman's Lien. If you've failed to do so, you may have a very difficult time in collecting the balance and recouping your attorney fees. Worse, if you've filed the lien affidavit without dotting all the i's and crossing the t's that the law now requires, you may be liable for putting a cloud on the homeowner's title.

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Answered on 3/11/02, 6:49 pm


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