Is it worth to sue a general contractor
My first contractor took many months doing minimal work, and took half my draws from my private lender, after electric inspection did not pass, I terminated his contract. The second contractor that took over quoted the job too low because he didn't realize he had to change the whole electric cabling in the house. He stared complaining how everything was costing him so much, and let me know straight up that he wasn't making any money. However he did passed all inspections, but now after a $10K payment he demanded he refuses to answer calls, and has not delivered the materials to compete the project.
I have seek attorney advise, and of course they advised they are ready to sue them if the contractor fails to complete with the work as per contract, however I have read that even if lawsuit is won, is extremely difficult to collect the money.
I wonder if it is better strategy to sue them in small court myself for completition of the project or for $20K , which is the maximum allowed in NJ for small court, and that is really all I would need to complete the project.
A few points to mention, they quoted me $48K, I have paid them $45 so far.
I still have $20K available to draw from my lender, but that is hard to happen since final work is not being done.
At the beginning I stood up to make $80K to $100K in this deal. Now I will luckly come out just even but that is due to the good initial deal I got on this rehab.
I would like to hear if anyone has actually recovered money from contractor in a lawsuit? I am out of funds, totally, even to pay for the lawyer I would have to borrow money.
I also have to worry about my project not complete, and the contract with the lender coming due in one month.