Construction Dispute Law in Louisiana
When the owner of some real estate and a contractor enter an agreement for a construction project in Jeanerette, Louisiana, be it a house, landscaping project, or massive office building, there's always a chance that problems will come up, no matter how careful everyone is. A few minor setbacks are almost inevitable, in fact.
Most often, the owners of land and contractors can end disputes before they get too serious, thus eliminating the need for litigation. Most contracts governing construction projects have built-in remedies for the most common problems, normally requiring the party that causes a delay or other problem to pay the other party a set fee.
And even if disputes can't be resolved so easily, the courts still don't necessarily have to get immersed. For example, a construction contract may require mediation before any further action is taken. Mediation is a process by which a third party tries to guide the parties to the dispute to a settlement. The mediator cannot, however, render any binding decision. Another option is arbitration. This is where the parties go to a private arbitration service, which can render a binding judgment (typically enforceable through contract law, as the parties agree in advance to abide by the arbitrator's decision). Arbitration has advantages over litigation, as the parties can have a say in choosing the arbitrator (allowing them to have their case arbitrated by an expert on construction disputes, for example).
Litigation of a Jeanerette, Louisiana construction dispute is never something that anyone wants to do. Nonetheless, there are sometimes no other options.
Examples of Construction Disputes That Might Lead to Litigation in Jeanerette, Louisiana
Major Delays: If the contractor or a subcontractor is at fault in causing a massive delay to a project (several months, for example), this may lead to a lawsuit. If the contract stated that time was of the essence for some reason (maybe the project was a new store that the owner hoped to open before the holiday shopping season, for example), a court can normally award the owner any damages that were caused by the delay.
Owner's refusal to pay: Contractors can also be the victims in construction disputes. Sometimes, the person who hired them will refuse to pay the agreed-upon fee, or withhold a portion of it. This, without more, certainly constitutes breach of contract. However, in such cases, the owner will rarely go to court and say "I just didn't feel like paying, so I didn't." Rather, they will claim that they had a very good reason to withhold all or part of the payment, such as unsatisfactory work by the contractor. In these cases, the court has to determine if the owner has a valid reason for not paying. If it concludes that he or she does not, it will order the owner to pay the agreed-upon price.
Subcontractor Disputes: In large projects, contractors often can't handle every aspect of the construction, so they hire other (normally smaller) contractors to do some specialized work for them, such as plumbing, electrical installations, and the like. The general contractor, however, is responsible to the owner for anything that goes wrong. If a subcontractor messes up, and the owner sues the contractor, the contractor will have to pay. However, the contractor can then go after the subcontractor to recover whatever he had to pay.
Mechanic's Liens: Sometimes, when a contractor wins in a lawsuit against the landowner who hired him or her, and obtains a court order for payment, the contractor will still refuse to pay. Since a money judgment isn't worth much without a way to enforce it, the laws of many states have evolved to authorize what's known as a "mechanic's lien." As a last resort, if a landowner refuses to pay the contractor for work done on the property, the contractor can force a sale of the property, and keep the proceeds, up to the amount of money owed.
Can a Jeanerette, Louisiana Attorney Help?
Construction disputes can be time-consuming and costly. Hiring a brilliant Jeanerette, Louisiana real estate attorney can make it much easier to deal with such disputes, and help you avoid litigation, or prevail if litigation becomes necessary.