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  1. #1
    Join Date
    Jan 2018

    Default How to Sue a Subcontractor for Abandonment Without a Contract

    My question involves independent contractors in the state of: Indiana.

    Investment Group hires me (1 man company [LLC]) to flip a house 4+ Hrs away from home location/work area. -No contract is signed by either party. Verbal agreement is made to send estimates that IG okays before work or down-payment is commenced. All payments for project go through me. - I hire 2 subs as labor help and start work.

    -> I hire a 3rd sub contractor to supervise first 2 and replace me as a worker as well. I leave job site to start on a bigger contract that was already set before work was started on flip house. IG is ok with this. ---> 3rd contractor disappears for 2 weeks and stalls project.

    I find out about this 2 weeks too late. First 2 subs can verify him hardly ever showing up on site. Entire time he is telling me everything is okay when I call to check in and keeps cashing his checks. ---IG kicks us off job site and hires new contractor to finish job due to stalling out of project.

    May-June -> - IG wants money re-paid from 3rd Sub, as well as small amount I was paid. -> I re-pay IG small amount that they feel I owe, 3rd sub promises to make arrangements soon to repay his. Aug-Sept---> - IG contacts me again about non=payment. Contact 3rd sub and he promises to repay starting next month. Dec----> IG contacts me again about non-payment. -> IG threatens to sue me if not repaid. Doesnt care who got paid from my company, wants repaid from me since check came to me. --> Surprise, 3rd sub is no longer communicating. IG is ready and wanting to sue. Amount owed is too large for me to pay or set up payments for.

    I have text messages and emails showing clearly that 3rd sub admitted responsibility for what happened. He also stated his intentions to repay the money via these same mediums. I have check images from bank that show he was paid from my company the amount requested repaid.

    If i am sued by IG can I sue 3rd sub without a contract for abandonment? Or since abandonment isn't defined as provided by a contract, can I sue for non-performance or just flat out theft? Thank you in advance and hope all who read this have a happy new year!

  2. #2
    Join Date
    Oct 2014

    Default Re: Indiana Law- How to Sue a Sub-Contractor for Abandonment Without a Contract

    You had a contract with the subcontractor; it was just a verbal contract rather than a written one. While that makes it harder to prove what the terms of the contract were if you and the subcontractor tell different versions of it, if you succeed in proving to the court the terms of the contract and that the subcontractor breached it you can win. But in the future, always get these arrangements in writing. Then when something like this happens you’ll have an easier time making your case.

  3. #3
    Join Date
    Nov 2015
    47.606 N 122.332 W in body, still at 90 S in my mind.

    Default Re: Indiana Law- How to Sue a Sub-Contractor for Abandonment Without a Contract

    Simply put, you are responsible for your subs. The IG pays you, you pay the subs. The sub now owes you the money and you owe the IG.

    This is why there are contracts. without contracts there really isn't much to say. You are still the liable party to the IG, however.
    "Where do those stairs go?"
    "They go up!"

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