This Is Why Our Legal System Sucks

[Tenacious E]

I just read through it, it appears what I posted was the case.

Yep, and the contract stated they wouldn't be responsible for any damage to hidden or unknown installations under the floor.

 

[Tenacious E]

This. I want to hear the whole story.

It's in the link. The contractor offered to come back finish its work after the homeowner fixed what needed to be fixed. The owner didn't take the contract up on that offer, and refused to pay the contractor. The court agreed that the contractor was not responsible for the broken water and sewer lines, as they were in an unusual place and the contract said the contractor was not responsible for damage to hidden or unknown installations under the floor.

 

[pablow]

Aren't mechanic's lien / foreclosure cases always cases decided in equity? Hence the EQCE case designation . . .
. . .
You assume too much. Further, if you simply log onto the Iowa e-file system, you can see the entire case history, including the trial court's Order in favor of the contractor and why they were seeking $58K in fees and costs.
...
I'm a civil defense lawyer who practices in a specific niche. And, as a civil defense lawyer I don't have the benefit of statutory fees as being part of the case. Again, you assume too much.

Small claim court has concurrent jurisdiction to deal with mechanics liens. And the amount in controversy is well within small claims jurisdiction. Bethinks someone wanted to avoid small claims court.

I did look at the case and pleadings and I see nothing to justify the fees. The top criminal defense attorneys around here could defend a first degree murder case for damn near what this attorney charged for essentially a small claims case.

 

[isufan21]

This. I want to hear the whole story.

According to the linked case, the homeowners didn't properly identify where their utilities were. Which allowed them to be hit, the person who caused the damaged was not licensed to repair it. The homeowners waited 2 months to fix the problem, and did not allow the contractors to finish the job following the repair. The person who fixed the problem testified that no person would of expected the utilities to be where they ended up being.

So basically the homeowners got unlucky, and wanted it to be someone else's fault.

 

[pablow]

The homeowners had an original counter suit for $11,000 which put it above small claims level

Not in his client's best interest. The homeowners' attorney is going to get sued anyway for bungling the homestead exemption issue. So maybe all is well in the world after all.

 

[IACub]

It's in the link. The contractor offered to come back finish its work after the homeowner fixed what needed to be fixed. The owner didn't take the contract up on that offer, and refused to pay the contractor. The court agreed that the contractor was not responsible for the broken water and sewer lines, as they were in an unusual place and the contract said the contractor was not responsible for damage to hidden or unknown installations under the floor.

So the homeowners signed a contract and refused to honor it. Sounds like a pretty cut and dried case. Now their self righteousness will cost them their home. Seems like they needed their lawyer to tell them to pay their f-ing bills instead of making a supreme court case out of it.

Moral of the story is: Know and understand what you're signing, and if you don't, be prepared for the consequences.

 

[Tenacious E]

So the homeowners signed a contract and refused to honor it. Sounds like a pretty cut and dried case. Now their self righteousness will cost them their home. Seems like they needed their lawyer to tell them to pay their f-ing bills instead of making a supreme court case out of it.

Moral of the story is: Know and understand what you're signing, and if you don't, be prepared for the consequences.

They also needed to raise the homestead defense as to the attorney's fees claim before the sheriff's sale and not waive it.

 

[Rudolph]

Sounds like everyone is in agreement that we need more government regulations.

No,.. I think the consensus is that we need fewer lawyers.

Regulations could do that.

Divine.

 

[markfromj]

Yes, one case means the whole system sucks.....

 

[WhiteSoxClone]

I think this footnote 3 describing why the attorneys' fees were so high is pretty telling. This couple brought it on themselves it sounds like.

 

[naturalmwa]

Why do you think arbitration would result in fewer attorneys?

Because there isn’t a trial which means less work for the lawyers.

 

[Tenacious E]

Because there isn’t a trial which means less work for the lawyers.

I don’t think you understand how arbitration works. There is the equivalent of a trial. Instead of a judge/jury it is typically decided by a panel of experts in the subject matter of the case. The costs are similar.

 

[St. Louis Hawk]

I don’t think you understand how arbitration works. There is the equivalent of a trial. Instead of a judge/jury it is typically decided by a panel of experts in the subject matter of the case. The costs are similar.

Exactly. Sometimes costs are higher because arbitrators say produce all your documents rather than reigning in the scope of discovery like a judge would.

 

[Tenacious E]

Exactly. Sometimes costs are higher because arbitrators say produce all your documents rather than reigning in the scope of discovery like a judge would.

And arbitrators aren’t shy with the rates, and the fees/costs are outrageous compared to those in state/federal court

 

[jasonrann]

I'm not a legal wizard and I don't know the ins and outs of the plaintiff's financials or past history with the contractor.....but the idea of tens of thousands in potential legal fees vs. being pissed off and eating $5400 tells me that a lawsuit is bad math.

Chances owners didn't have $5,400 to be able to pay? Pretty good, I bet.

 

[aflachawk]

Basement waterproofer accidently drills into your sewer line. You dispute the bill. It goes to court. Attorneys arrive on the scene. Iowa Supreme Court says that's cool - you lose your home.

Long-running litigation, like a species in the order lepidoptera, often
goes through a metamorphosis. The difference is that the final stage of a
legal metamorphosis is not a butterfly. Rather, as here, it is frequently a
battle over attorney fees.
In June 2013, certain homeowners hired a contractor to waterproof
their basement. After the contractor accidentally drilled into the house’s
water and sewer lines, which were in an unusual location, the homeowners
refused to pay the contractor’s bill. The contractor then sued to enforce a
mechanic’s lien.
After more than three years of litigation, including an appeal, it was
ultimately determined that the homeowners had to pay all but $500 of the
contractor’s unpaid $5400 bill and that the contractor was entitled to
foreclosure of its mechanic’s lien.
This lawsuit is now in the last stage of its life cycle. The present
dispute relates to the contractor’s attorney fees, which now amount to over
$58,000. Iowa law provides that “n a court action to enforce a
mechanic’s lien, a prevailing plaintiff may be awarded reasonable attorney
fees.” https://www.iowacourts.gov/courtcases/4395/embed/SupremeCourtOpinion
​

Iowa Supreme Court rules contractor can foreclose on hapless homeowner for $58,000 in attorney fees and water-proofer's bill plus court costs and interest, of course. Bye bye house.

I am no attorney but maybe the better course would have been to pay the bill then sue the contractor

 

[Tenacious E]

I am no attorney but maybe the better course would have been to pay the bill then sue the contractor

Hindsight is 20/20 but the best course would have been to read the contract and understand they agreed the contractor was not responsible for hitting pipes because they were in an unusual place. If the contractor agreed to be responsible for that he would have likely charged a higher rate. Freedom to contract and such...

 

[Joes Place]

Hindsight is 20/20 but the best course would have been to read the contract and understand they agreed the contractor was not responsible for hitting pipes because they were in an unusual place.

AND...pull the building schems for your property, so you could hand them to the contractor and he could avoid the problem altogether!!!

 

[naturalmwa]

I don’t think you understand how arbitration works. There is the equivalent of a trial. Instead of a judge/jury it is typically decided by a panel of experts in the subject matter of the case. The costs are similar.

Thanks for the knowledge.