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!