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What is the legal validity of Construction Co.'s position?

Michigan

I had a big problem with a water leak in my mobile home and I needed a plumber, then a mold company and now a construction company to do renovations to my home. My problem is with the mold removal company -Maher in Walled Lake, MI. First, they wanted $4,200 down -which I paid. Then, they wanted $3,250 more -which I paid. My homeowners insurance paid very little of this because of their mold exclusion-limitation of $500 and they have a $13,000 cap for the maximum they will pay out for my policy. Maher without giving me any pre-warning of the amount and no itemization of what the amount was for, went and billed my homeowners for $15,000! Of this, my insurance paid $5,292 which exhausted the remainder of my $13,000 cap. Now, Maher wants me to pay the full $15,000 to them! I don't have that money. All I have is the $5292 that my insurance company paid. Also, Maher has my dishwasher in their storage and won't return it to me. Do they have a legal footing to sue me and win and/or put a lien on my home? Thank you for your advice!

3 replies

Jun 10, 2021
Hi there, well this needs dissecting with a concise timeline. A lien can only be placed and enforced by a licensed contractor w/i (90) days from the last day of work. A copy of any contract and written communications is needed to review. Depending on the facts, and some new legal precedent, there is a possibility of statutory conversion (w/ the threat of punitive and attorney fee damages). You hold the potential threat of an administrative complaint against the company’s business licensure, and a civil action in court, depending on the actual facts and circumstances. A polite but firm demand letter from you or your attorney applying facts to law before taking any other action would seem the next, best step. My best …
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Jun 11, 2021
Thank you for your reply, Mr. Robertson!! I received an answer from BuildZoom that their license expired in 2017! But when I checked on LARA's Acella, it shows that Maher is currently licensed until in 2023! Could Maher have 2 different licenses? Which is correct -do they have a valid license or not? And by the way, BBB shows that they are not approved by BBB and yet on Maher's website, it states that they are. Thank you for any help you can give me!
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Jun 12, 2021
Hi there, I would go with LARA as authoritative as to licensure. Between the different parties, there are a number of potential cooks in the kitchen on this one. I think the brief timeline, review of the contract and a demand letter getting the written input from all interested parties is the proper start to distill things down to where you and an attorney can put a proper thumb on the legal scale to get a just , proper and (hopefully) prompt resolution.
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