by Guest » Wed Jul 18, 2012 04:38 pm
I received a $7500 payment from my insurance company on a claim to have work done to my house. I paid the money directly to the contractor. He did not complete the job and I'd like to sue to get my money back. Is it an issue that I'm suing to get the money back from the contractor that the insurance company paid to me? Thanks.
Posted: Thu Jul 19, 2012 12:45 am Post Subject:
Is it an issue that I'm suing to get the money back from the contractor that the insurance company paid to me?
Sounds like an "issue".
Noun:
An important topic or problem for debate or discussion.
Posted: Thu Jul 19, 2012 01:03 am Post Subject:
Without knowing the specific laws of your state, you should generally be free to pursue the contractor without any interference from your insurance carrier. The carrier has essentially discharged their duty and would seemingly be done with this claim. Its up to you to protect your interests and pursue the contractor.
That being said, there is a possibility that you might qualify for a second homeowners claim, this one for theft of personal property. The 7500 is actually personal property, albeit intangible personal property. To support this new theft claim, you will likely need to file a police report and convince the local police department that this is indeed a crime rather than simply a contractual dispute. Most states have several theft statutes that would qualify this scenario as a crime. For example, "theft by failure to make disposition" applies if the contractor’s estimate included both labor and materials. The receipt of the money from you and the subsequent failure of the contractor to purchase the agreed upon materials means that he wrongfully kept money that was supposed to be allocated toward materials. Moreover, if you have evidence to suggest the contractor accepted the sums without any intention of ever performing the work then several other criminal statutes would apply (i.e. theft by deception, deceptive of fraudulent business practices, etc.).
Please note, your carrier (and the police) might be resistant to recognize this situation as theft or you might not have coverage for that form of loss. If you encounter resistance, consult with a local attorney. Most attorneys offer free consolations.
Posted: Thu Jul 19, 2012 03:29 am Post Subject:
Good point... and explains why I'm now seeing policies that exclude loss of property from (something like) trickery or willful giving of the property.
Posted: Thu Jul 19, 2012 02:44 pm Post Subject:
Most policies have a limitation on money due to theft; usually in my experience $100. This avenue might not be worth the effort. Check policy provisions to make sure.
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