Seeking non legal opinions here.

[hardworkingstiff]

My contract is with the GC (dock builder/installer) who has a contract with the developer (marina/housing complex). The GC owes me a little over $25K (over and above the $17K deposit) for purchased materials (type W cable for phase-2) not stored on site and a 1,000-amp electrical panel (for phase-2) plus the last invoice of phase-1. Oh yea, I've paid my suppliers (back in September) for all this material (dumb me I guess).

The developer stopped work on phase-2 in October due to lack of sales and they ran out of money. The GC says they don't have the money to pay me until the developer pays them. The developer has been saying they should have the money next week since early December.

I've asked my suppliers to let me know how much of a discount they would need to take the materials back. SQ-D I believe will take the panel parts back (they don't assemble this size panel anymore, it comes in parts and pieces). The wire supplier (different company) does not seem to be willing (at any price) to take it back.

So after all that, here is my question. Do you think I'm within my rights to sell the panel back, keep the $17K deposit, and keep the wire (if the supplier won't take it back) and cancel the contract? The contract is pretty loose, just a scope of work with payment terms (Net 30) and signatures.

Opinions?

(I am seeking legal advice this week).

 

[Dennis Alwon]

Lou, I don't think any of us here are qualified to answer that question but I would talk with a lawyer before you do anything.
IMO, the GC is responsible to you not the developer. It should not be your problem if the GC doesn't get paid.

 

[hardworkingstiff]

Lou, I don't think any of us here are qualified to answer that question but I would talk with a lawyer before you do anything.
IMO, the GC is responsible to you not the developer. It should not be your problem if the GC doesn't get paid.

I agree Dennis that none of us are qualified, and I'm not going to act on any opinions I see here. I was just curious as to what others think.

I agree the GC is responsible, but the GC has no assests and the developer is about bankrupt I believe.

I will speak with an attorney prior to any actions.

 

[Dennis Alwon]

I agree Dennis that none of us are qualified, and I'm not going to act on any opinions I see here. I was just curious as to what others think.

I agree the GC is responsible, but the GC has no assests and the developer is about bankrupt I believe.

I will speak with an attorney prior to any actions.

Good Luck. I guess my instinct is to get hold of that wire and any other asset before it gets locked up in a court battle. Again you may want to check with the attorney on that.

 

[Rockyd]

Thought this kind of thing only happened in California. With an ear close to the ground, I hear people getting burned in Cali, because the state is out of money. Private sector is looking better all the time.

 

[hardworkingstiff]

Good Luck. I guess my instinct is to get hold of that wire and any other asset before it gets locked up in a court battle. Again you may want to check with the attorney on that.

I'm getting the wire out of the GC's sister companies yard tomorrow, w/out attorney advice. An insider told me they are about chapter 11. I don't need that wire in their possesion.

 

[nakulak]

get to an attorney monday, you are on the verge of losing lien rights, if you haven't already gone over the time limit for notice of intent to file. even if the developer is bankrupt you could still end up owning a piece of the property or at least have a chance to get your money someday, but not if you don't have a lien filed against the property.

 

[Fulthrotl]

I'm getting the wire out of the GC's sister companies yard tomorrow, w/out attorney advice. An insider told me they are about chapter 11. I don't need that wire in their possesion.

yep, first thing.

not being an attorney, but having an opinion on most everything......

if ya haven't put it in, and you haven't been paid for it, and the work has
been canceled, there is a breach of contract. you didn't cause it. you own
that stuff until you are paid for it. doesn't look like that's gonna happen.
it wasn't delivered to the jobsite, so that dog won't bark. nab it, quick.

there was another post about lien notices, preliminary notices and such.
head for the courthouse, as soon as you get the material in a safe spot.

if you have employees who've worked on that project, they can file
mechanics lien's if they haven't been paid. your ability to attach the
title to the property is more complicated. time for the attorney, and the
official letters... you'll need to go thru the process to be able to deduct
losses on your taxes.....

good luck....

 

[ptonsparky]

Get your materials out of there as quickly as you can. In NE you loose your rights to them once they are on the job.

Good luck.

 

[GUNNING]

Possession is 9/10ths of the law, unless its bankruptcy. If you have your stuff, and its not installed, then Id say its yours. If they have your stuff, and its not installed, Id say its theirs. If you have been paid for something and have delivered it and they can prove it, it's theirs. If you have been paid for an asset and its not there and you have it its theft. If you owe them for work or material they will get a federal judge to have you disgorge it. Federal Judges are appointed for life, can only be impeached by congress and have absolute power and there own police force call federal marshals. Pick your battles Be discrete. Sometimes GC's will help with un complicating there lives by helping you get clear. It depends on who is making the decisions. Once lawyers get involved it gets complicated at an hourly rate, copies and by the 6 minute block of time. $17000 equates to about 37 hours of there time, and oh yea, they pad it. What's your sanity worth?

 

[SmithBuilt]

I agree you need professional advise but here's a thought.

If you still have a good relationship with the GC, the materials are not installed and you can get them back I say go for it. I'm under the assumption that materials that are installed are off limits but everything else is OK.

I'm sure you know these things never end well. Good luck.

 

[hardworkingstiff]

Thanks everyone. I got the wire and it's in a bonded warehouse now. I talked with the developer and they seem to want to work this out. I'll let you know how it all shakes out.

Still waiting on 2 attorneys to call back.

 

[mkgrady]

Thanks everyone. I got the wire and it's in a bonded warehouse now. I talked with the developer and they seem to want to work this out. I'll let you know how it all shakes out.

Still waiting on 2 attorneys to call back.

Now that you have the materials you may want to look for the terms of sale for the cable and panel.

Even in an informal supply purchase there are usually terms and conditions dictated by the supplier. Look on the back of their invoice or the packing slip. It might tell you about your rights to return the materials.

 

[GUNNING]

Good job on the bonded warehouse. Sounds like your on the right track. Good luck, make sure you keep track of time and expenses, if this works out you can back charge them.