Firm News
Arizona Residential Contractors' Recovery Fund
The difficult economy of the last few years has negatively affected the construction industry and consumers. Many consumers have paid contractors for residential construction work such as kitchen remodels or swimming pool installations that were performed improperly or never performed at all. Unfortunately, some contractors use money received for one project to pay for materials or other costs of another project. Traditional litigation against a contractor that is in debt or even in bankruptcy can be fruitless; however, there are other remedies to pursue. In Arizona, all residential contractors must pay into the Arizona Residential Contractors' Recovery Fund, which provides financial relief to residential consumers up to $30,000.00 per incident. Recently, Associate Ryan C. Curtis helped a client prove his case against a cabinet contractor who took the client's money but never installed the cabinets. Mr. Curtis represented the client and prevailed in a hearing before an administrative law judge and obtained the maximum allowable payment for the client from the Recovery Fund.
Own A Rental Property? Protect Yourself Through A Limited Liability Company
The current housing market has forced many homeowners out of their homes and into rental properties resulting in much higher rental rates. Simultaneously, many people have taken advantage of low housing prices and historically low interest rates to purchase investment properties to generate rental income. This has been done by traditional investors but also others who have never been landlords. Owning a rental property, however, can expose the landlord to certain liabilities and claims from renters. If you own rental properties, you can help limit your liability by creating a limited liability company ("LLC") and transferring your investment property to a newly formed LLC. That way, the landlord's liability is limited to the assets of the LLC. Further, the tenant can then pay rent to the LLC and the landlord can pay necessary expenses through the LLC. Associate Ryan C. Curtis assists new and experienced landlords in creating LLCs through the Arizona Corporation Commission, drafting LLC operating agreements, and producing necessary documents to transfer the rental property to the LLC.
Pursuing Recovery For Subcontractors
Subcontractors are frequently unpaid for work performed, even on public works projects. Many times a subcontractor performs work based on an oral agreement and the prime contractor will dispute the amount of the subcontract, deny oral change orders or claim the amount of the subcontract is reduced due to offsets and credits for damage to another trade's work allegedly caused by the subcontractor. Associate Daryl R. Wilson has been working with a subcontractor that was unpaid by the prime contractor on a public works job. A lawsuit has been filed on behalf of the subcontractor against the prime contractor for breach of contract. A claim against the prime contractor's bond company has also been asserted in the lawsuit.
Sometimes product performance issues affect a subcontractor's work. Associate Daryl R. Wilson is representing another subcontractor that was required to purchase additional materials and incur unanticipated labor expenses because a product did not perform according to manufacturer product specifications. The amount of offset to which the subcontractor is legally entitled is the main issue in a pending lawsuit. A personal guarantee is also at issue in the lawsuit
Newsletters
The following news articles might be of interest to you as you research your legal problem. We hope you find these articles interesting. For advice about your legal situation, contact us today.
