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Impact of Arbitration

PennsylvaniaCollectionsLawsuitLien DeadlinesRecovery Options

We started a roofing job on 7/12/2019 for $60,000 on a large home in Pennsylvania. After completing 95% of the job, the homeowner began complaining that the materials being used were inferior. Then, as of 7/23/19, the homeowner would not allow us to return to the property and finish the job (the job is unfinished and there is about $2,500 worth of work remaining as of today). There is a balance due by the homeowner of $10,000 on the job. In January of 2020, the homeowner filed for arbitration with the AAA. On 3/18/20, the Arbitrator denied the claim, finding against the homeowner, and the arbitrator closed the case. We are now trying to collect the balance due of $10,000. The homeowner is arguing we had to raise that as a counterclaim in the arbitration, and our failure to do so waives that claim. We disagree. What are our options at this point for collecting the unpaid balance? Can we file a lien?

2 replies

May 15, 2020
Thanks! Great answer.
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Jun 17, 2020
PA liens have to be filed within 6 months of when you worked on the project, so you will not be able to file a lien at this point. This question is hard to answer without seeing the AAA award, the papers filed prior to arbitration, and the underlying contract. If the AAA awarded you $10,000, then you should have a right to collect that $10,000. I would be leery of taking the homeowner's word on anything if he owes you money. I would recommend that you take all the relevant papers to a construction attorney who offers free consultations and have a lawyer tell you if it is worth pursuing.
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