What should I do if I wasn't paid for work before a home sale?

Full question:

I am a contractor and did work on a property in Maine prior to the sale of the home for which I have not been paid. Closing took place on 12/20/2010. It is my understanding that this was not disclosed at closing, otherwise payment for my services would have been issued at that time either by the seller or the title company. My question is what should I do next and is there a time limit for me to take action?

  • Category: Contractors
  • Subcategory: Construction Liens
  • Date:
  • State: Maine

Answer:

If you haven't been paid for your work, you may file a breach of contract claim. In Maine, the statute of limitations for contract claims is six years. A breach of contract occurs when one party fails to fulfill their obligations under the contract, resulting in economic harm to the other party.

When pursuing a breach of contract claim, the goal is to restore the injured party to the position they would have been in had the breach not occurred. Remedies for breach of contract typically include:

  • Money damages: Compensation for financial losses caused by the breach.
  • Restitution: Returning any money or property given to the defendant under the contract.
  • Rescission: Terminating the contractual obligations of both parties.
  • Reformation: Modifying the contract to correct inequities.
  • Specific performance: Compelling the breaching party to fulfill their contractual duties when monetary damages are insufficient.

Additionally, if a promise was made that you relied upon, you might explore the concept of promissory estoppel, which can enforce a promise even without a formal contract if certain conditions are met.

It's important to act within the six-year time frame to ensure your claim is valid. Consider consulting with a legal professional to discuss your specific situation and options.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Yes, a contractor can sue a homeowner even without a formal contract, but it may be more challenging. If the contractor can prove that work was done and that the homeowner accepted the services, they might be able to recover payment through a theory like unjust enrichment or quantum meruit. However, having a written contract is always beneficial as it clearly outlines the terms and expectations of both parties.