Renovation Contractor Fraud

[Judith Spalding]

I bought my first four unit multi property a year and a half ago. I lived in one of the apartments which I discovered had mold. I hired a local business to help remediate and renovate. I made a lot of mistakes in choosing this particular company. I did not get signed contracts or deadlines or price points. I did get the owner with a very charismatic personality and tons of promises! He started off asking for $5000 upfront. His reasoning sounded plausible so I wrote the check.  In a few days time, he had all the cabinets off the walls and sink removed from the kitchen. He had cut away the drain pipe at the wall to remove the countertops, cabinets and plumbing. There was substantial mold, but what I did not expect was for him to remove all the walls down to the studs which included both bedrooms, living room, kitchen, as well as the ceiling and all the flooring in the living room. Several weeks went by with no further work being done. Construction debris was left outside of the apartment as well as in the bathtub. When I finally got him to meet me at the apartment, he told me that I owed $40,000 to cover the rest of the mold removal and demolition costs and renovation. I was absolutely horrified! My house insurance did pay 25,000 for a leak from upstairs. Part of that money went for the new HVAC unit upstairs that was causing the slow leak. The contractor stood over me as I wrote the check for $35,000 which I had to borrow from my 401(k). He said that still wouldn't cover all the costs. His crew did put up the drywall and tape for the walls and ceilings but did not prime. It was several months before I realized he and his crew were never coming back.  I tried to turn himself in to the Better Business Bureau, but that turned out to be a waste of time as he slandered me and called me a liar.  I can't find a lawyer willing to work with me. So my question is, should I drop pursuing legalities and call it a loss? Many people have told me to just take it as a lesson learned because a lawyer will cost more than it's worth. I'm still left with paying back the 401(k) loan and fixing the apartment out of my own funds. If it were any of you, what would you do?