Contract with a pool builder

We had a contractor build a pool last year and it was not built to spec, they shorted us several feet and the work was not finalized (they wouldn't complete the punchlist). We called several times and e-mailed us, now they sent a bill collector to get the remaining balance (which is $1200). However, they owe us a few thousand dollars because of all the damage they did to our neighbor's yard (which we paid to keep peace with the neighbor - after the contractor promised the neighbor he would fix it, and it says in the contract "will restore right-of-way property to it's previous ondition" after construction). When we called the pool company after finding out they were trying to get the money using a bill collector they stated we had to pay them and we couldn't sue them because our contract stated we could only got rhough arbitration. Now what? - Is this your question? Add additional information
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Answers (1)

John Alexander Willis

John Alexander Willis

Contributor Level 4
You have a breach of contract case that will be governed mostly by the terms of the contract between you and the builder. The fact that there is an arbitration clause in a contract does not prohibit you from suing them, but may (if the arbitration clause is valid) require that the judge send you to binding arbitration rather than have a judge or jury decide the matter. However, the pool company's lawyers would have to demand arbitration immediately or they may waive their right. It will be important for you to determine if the contract allows for attorneys fees because, if it doesn't, it may not make financial sense for you to sue if your legal costs are more than what you recover. You need to have an attorney review the contract. If you just want the collection company to go away and have no damaging credit report a lwayer may be able to negotiate that for you without filing suit by advising the collection company that you have defenses and will sue if necessary.
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