Top 8 Ways to Save Money on Attorney Fees

Top 8 Ways to Save Money on Attorney Fees

attorney fees, attorney's fees, legal fees

Let’s talk about attorney fees. When confronted with a legal claim or issue, some people simply want to “turn it over to the lawyer and be done with it.” Others prefer a more hands-on approach, and they prefer to work closely with legal counsel.  Some clients want to resolve a matter as quickly and cost-efficiently as possible, while others desire vindication and want nothing short of a judicial ruling or jury verdict. However, there is one thing that all clients probably agree on.  The lower the attorney fees, the better. 

How do you keep legal fees in check?

Make sure your goals and legal strategy are clear. Lawyers work for clients, and attorney fees are based on the amount of work the lawyer performs for the client.  Clear communication and responsiveness from both the lawyer and the client is critical.  Above all, you must make sure you communicate clear goals, and then to listen and understand what actions your lawyer is suggesting.

What can I do to save money on attorney fees?

There are also a few things you can do to reduce attorney fees, legal costs, and expenses:

(1)  Come prepared.  Each time you meet with your lawyer, anticipate questions and come prepared with information. Bring a timeline, notes, a list of witnesses and contact information, and relevant documents.  Don’t make your lawyer beg for the information he or she will need in order to best represent you.

(2)  Obtain, review and organize your documents.  The overwhelming majority of cases can be boiled down to a few key documents. You don’t want to pay your lawyer to obtain documents you could get yourself. Nor do you want to pay a lawyer to “find a needle in a haystack” or to review unorganized or unnecessary documents searching for one relevant piece of information.

(3)  Promptly do what your lawyer asks you to do.  Respond quickly to information and discovery requests from your attorney.  Failure to do so drives up costs immeasurably.  It can lead to unnecessary communications between opposing lawyers, and between clients and lawyers, and often leads to unnecessary motions being filed by opposing counsel.

(4)  Stay on top of your case. Keep copies of all papers, letters, and pleadings.  Take notes when you talk to your attorney.  Keep yourself informed about your case.  You’d be shocked at how often clients call and/or ask for meetings to re-review things they should already know, or to get copies of papers they already have.

(5)  Be an “information gatherer.”  This one is especially true for companies and small businesses. You know your business, employees, and contacts better than your lawyer. Utilize your knowledge and relationships. You can often obtain information and documents much more easily and cost efficiently than your lawyer can.

(6)  Utilize your lawyer’s assistant.  Many of your questions and phone calls can be directed to your lawyer’s assistant, most of which is not recorded as billable time.  For example, questions about scheduling, getting copies of documents, or coordinating meetings and events can easily be handled by a legal assistant much more cheaply than talking to the lawyer every time.

(7)  Understand the difference between legal advice and counseling.  It is obviously critical that you communicate effectively with your lawyer, but keep communications to the point. Oftentimes clients complain or vent about the opposing party, the unfairness of the situation and/or the legal process, or the tactics of the other lawyer.  It’s perfectly okay if you want to pay your attorney to be a sympathetic ear for you, but understand that you pay for your attorney’s time, and that you can very likely get a sympathetic ear elsewhere for free.

(8)  Compromise. Litigation is expensive. Realize that “wins” come in varying shapes and sizes, and that negotiating from a position of strength borne out of effective and thorough preparation can lead to the best long-term outcome.  Indeed, a lengthy lawsuit may not be the best long-term strategy even though you think might have a slam dunk case at trial two years from now.  Winning the battle isn’t worth losing the war.  Smart and tactical compromise can be a virtue, particularly when taking into account both the direct and indirect costs of litigation.

Wiseman Bray has offices in Memphis and Nashville, Tennessee.  Call us today at 901-372-5003.

Insurance Company Bad Faith? Ask the Insurance Lawyer

bad faith insurance lawyer

What You Need to Know about Insurance Company Claims

The overwhelming majority of insurance claims are fairly handled and paid without complication. But, some are not. While there are a number of reasons why an insurance claim might be denied or why you might not get paid what you think you are owed, one thing is certain in Tennessee:  An insurance company must handle your claim in good faith. If you think your insurer is acting in bad faith, consult with an insurance lawyer.

Tennessee Bad Faith Statute

If an insurance company does not act in good faith in handling an insurance claim, then it may be subject to bad faith penalty damages. Tennessee Code Annotated  56-7-105  says that if an insurance company’s refusal to pay a claim was not in good faith, then then the company may be liable for up to 25% of the loss amount, measured by the additional expenses incurred by the policyholder. So, if your loss is $100,000, you could recover up to an additional $25,000 if the insurance company didn’t act in good faith.

What is Bad Faith? What is Good Faith?

Every case is unique and it depends on the circumstances.  That’s why you need to consult with an insurance lawyer. As a general matter, it is difficult to prove that an insurance company’s denial of a claim was not in good faith.  The policyholder has the burden of proving bad faith and the following principles in Tennessee case law favor the insurance companies:

  • Delay in settling a claim does not constitute bad faith when there is a genuine dispute as to value, no conscious indifference to the claim, and no proof that the insurer acted from any improper motive.
  • If an insurance company unsuccessfully asserts a defense and the defense was made in good faith, the statute does not permit the imposing of the bad faith penalty. So, even if the insurance company loses or was wrong, it doesn’t necessarily mean that the company acted in bad faith.

Before joining Wiseman Bray PLLC, I worked for almost ten (10) years at an insurance defense law firm representing insurance companies.  I cannot recall a single time that I was not successful in eliminating the bad faith portion of a lawsuit before the case made it to trial. I would add that, in most cases, the bad faith claim was simply thrown into the lawsuit, as if an afterthought.  I say these things to stress that it’s an unusual case when the bad faith penalty is actually applicable, but that does not mean you don’t have a claim for bad faith. Ask an insurance lawyer to be sure.

Unfair Claims Settlement Act

Tennessee also has what is referred to as the Tennessee Unfair Trade Practices and Unfair Claims Settlement Act. While the Act does not create a private right of action, it does create standards and rules that insurance companies must follow when handling claims. The Act provides at least some level of guidance concerning activities that might be considered to evidence bad faith.

What to Do if You Suspect Bad Faith by Your Insurance Company

  • Read your insurance policy. Make sure that you are in compliance with the “Duties After Loss” section.
  • Keep good and organized records.
  • Ensure that all of your communications to the insurer are kind and courteous and that they exhibit cooperation.
  • Keep a timeline of relevant communications and events that support an allegation of bad faith.
  • Get an insurance lawyer involved sooner rather than later. Insurance policies are full of deadlines and there are specific procedures that are important in preserving a claim of statutory bad faith against an insurer.

Need an Insurance Lawyer? We can help.

Call Wiseman Bray PLLC at (901) 372-5003 or email us here.

Visit our website to learn more. Our Memphis office is conveniently located at 8001 Centerview Parkway, Suite 103 Memphis, TN 38018,  near the intersection of Walnut Grove and Germantown Parkway.  We accept cases throughout Tennessee and Mississippi, including Memphis, Bartlett, Cordova, and Germantown.

 

Can my Fitbit be used as evidence against me?

Can my Fitbit be used as evidence against me?

By:            Erin Shea

fitbit can be used by injury lawyer

Can my Fitbit® data be used as evidence in court?

As I was driving to work yesterday, I heard an advertisement for a Local News Story on Fox 13 about potential unintended consequences of using one of those trendy new fitness tracker devices, such as the Fitbit®. This piqued my interest for a couple of different reasons: (1) My husband bought me a Fitbit® for my birthday recently, and (2) Part of my job as a lawyer involves looking for information to either support or weaken a particular factual claim being made by someone in a lawsuit, and doesn’t a fitness tracker record accurate and factual information?

Using Fitbit® Data as Evidence in Court Cases

What could be the unintended consequence of using a fitness tracker? Relevant to my job as a lawyer, Fox 13’s story and this article discuss how fitness tracking data can make or break a court case.

I haven’t seen any reported appellate decisions in Tennessee yet discussing the admissibility of fitness tracking data at trial, but I’m sure they are coming. Also, even if the data never sees the inside of a courtroom, there are other uses for it, including using the information to secure other evidence or as a negotiation point during settlement talks.

For example, if a person in a personal injury suit is making a claim that they can no longer walk more than a few steps at a time, but the person’s Fitbit® data shows that the person is taking 20,000 steps a day, I would argue that the claim is being exaggerated.  On a somewhat related topic, I will never forget an old case I worked on where the injured person claimed he could no longer run races, but his social media accounts showed several post-race photographs that were taken after the accident.

Moral of the Story

Don’t forget that your electronic devices, including fitness tracking devices like a Fitbit®, are collecting data and information about you.  Think about how that data might be used to help or hurt you because you can be sure that the lawyers are!

Need a Lawyer?

erin shea, injury lawyer at wiseman bray memphisCall  me or any of the other lawyers at Wiseman Bray PLLC  at (901) 372-5003. We’d be glad to help you. We handle cases in Memphis, Cordova, Germantown, Bartlett, Arlington, Lakeland,  Shelby County, and throughout Tennessee and Mississippi.  If we can’t help you, we’ll point you in the right direction.

 

Insurance Claim Deadlines May be Shorter Than You Think

insurance-deadline - contact memphis insurance lawyerSuppose your insurance company denies your claim – whether for a fire loss, water damage, theft, or storm damage. How long do you have to file a lawsuit against the insurance company? Well, it may not be as long as you think, so be careful! The best thing you can do to make sure you preserve your insurance claim case is to consult with an insurance lawyer as soon as possible.

Insurance Policies Can Shorten Time for Filing Suit

While an insurance policy is a contract, and the “regular” deadline (a/k/a the statute of limitation) on contract claims in Tennessee is usually 6 years, your homeowners policy almost certainly has a much shorter “contractual statute of limitations” provision hidden in the fine print. In most cases, that shorter contractual deadline is only 1 year, and sometimes even shorter.

Immunity and Loss Settlement Periods in an Insurance Policy

An insurance policy usually provides for a period of immunity, or loss settlement period, during which you can’t sue the insurance company. This is to give the company time to investigate your claim before having to respond to it.  Many policies provide for 45-60 day periods. In some cases, the immunity period may expire before they actually finish investigating your claim, or before you receive a payment or denial. Because of this, Tennessee case law provides that your time to file suit begins to run following the “accrual of the cause of action” against your insurance company.

What does “accrual of the cause of action” mean?

The “accrual of the cause of action” against the insurance company occurs – and thus the clock starts ticking on your deadline – when the immunity period expires, or when the insurance company denies your claim, whichever comes first.

In some cases, depending on what the policy says, an insurance company’s immunity period may be extended if it continues to actively investigate a claim and request information beyond the time stated in the policy. It is critical that you consult with an insurance attorney to determine the applicable deadlines in your insurance claim case.

Important Dates in an Insurance Claim

If you have an insurance claim, keep all of your claim-related papers in one place. Look at your policy and figure out the loss settlement period.  If you don’t have a copy of your policy, ask for one. Keep any letters or emails you send to or receive from the insurance company. Record, be aware of, and keep up with the following dates:

  • Date of loss
  • Dates of claim payments
  • Dates of correspondence or phone conversations with the insurance company
  • Date of Denial

Don’t Wait Too Late to Involve an Insurance Lawyer

Determining insurance claim deadlines can be complicated, confusing, and depends on a number of factors. The insurance company understands how these time frames and deadlines work, and because adjusting insurance claims and reading insurance policies probably isn’t what you do for a living, you are at a disadvantage, especially in a complex or large loss insurance claim.

Call us sooner rather than later if you feel like your homeowners insurance claim is not being handled or paid properly.

  • Insurance policy language is confusing and it doesn’t always mean what it sounds like.
  • Your insurance adjuster is not your advocate.
  • We know insurance law. We will apply insurance policy language to your advantage.
  • We understand how insurance deadlines work.
  • You’ve paid your premiums for all of these years. Don’t lose out on a technicality.

 

Let us help you with your insurance claim case. Call Wiseman Bray PLLC at 901-372-5003.  We have offices in Memphis and Nashville. Don’t wait too late and lose your legal right to recover.

Lawsuit Deadlines: How long do I have to file a lawsuit in Tennessee?

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Don’t let lawsuit deadlines kill your case before it even starts.

Why are there statutes of limitation or lawsuit deadlines?

In Tennessee, there are lawsuit deadlines called “statutes of limitations,” so it is important to speak to a lawyer as soon as possible if you believe you may need to file a lawsuit.  If you wait too late, you may lose your ability to seek a remedy or recovery in court.

Statutes of limitation serve a number of purposes.  They promote stability in personal and business relationships; they prevent undue delay in filing lawsuits; they help to avoid uncertainty in pursuing and defending old claims; and they help to ensure that evidence is preserved and not lost due to the lapse of time, fading memories, or death of witnesses or parties.

What time limit applies to my case?

It depends on what kind of case you have. Even our courts sometimes struggle with which statute of limitation applies. Generally, a court looks to the “gravamen” of the complaint to determine which statute of limitation applies. Think of the “gravamen” as the “real purpose” or the “main point” of a lawsuit.

The Tennessee Supreme Court, in Benz-Elliott v. Barrett Enterprises  said that when determining the gravamen of a complaint in order to decide which statute of limitation applies, “a court must first consider the legal basis of the claim and then consider the type of injuries for which damages are sought. This analysis is necessarily fact-intensive and requires a careful examination of the allegations of the complaint as to each claim for the types of injuries asserted and damages sought.”

You may have multiple legal theories and claims available to you in your case, but those claims could have different statutes of limitation that will affect your ability to recover.  Because this analysis can be difficult, and it is to your advantage to include as many viable claims for recovery as possible, you should consult an attorney as soon as possible to discuss your case.

Statutes of Limitation in Tennessee for Common Claims

Below are statutes of limitation for common types of claims. There are others, so make sure and consult with an attorney to make sure you understand what time limit applies to your case.

  • Personal injury or wrongful death – 1 year
  • Property damage – 3 years
  • Conversion – 3 years
  • Breach of Contract – 6 years
  • Fraud/Misrepresentation – 3 years
  • Legal or medical malpractice – 1 year
  • Consumer Protection Act claims – 1 year
  • Sale of Goods Contract Claims – 4 years
  • Slander (spoken defamation) – 6 months
  • Libel (written defamation) – 1 year

Exceptions

There are certain exception to the statutes of limitation in Tennessee, but you should never assume an exception will apply to your case. For example, if a person took active steps to keep you from discovering an injury or claim (i.e., fraudulent concealment), then you may have additional time to file suit.

Courts will not allow you extra time to file suit simply because you did not know the applicable statute of limitation, or because you suffered an injury but didn’t find out the full facts or extent of your damage until later in time. Consult with an attorney as soon as you think you have a claim.

Don’t Lose Your Ability to Recover. Call us today.

Statutes of limitations and lawsuit deadlines can kill your case before it even starts. If you think you may have a legal claim against someone, please call us today at 901-372-5003 or email us here. Don’t wait too late and lose your ability to file suit or recover damages. Let the attorneys of Wiseman Bray PLLC help you today.

I No Longer Want to Own Property with a Partner – How Do I Break Up?

I No Longer Want to Own Property with a Partner – How Do I Break Up?

picket-fencesImagine you and a partner purchase a rental property in the hopes of generating additional income.  Or perhaps you jointly inherit some property.  You own the property as tenants in common, meaning that you each own a ½ interest. You’re each responsible for ½ the property taxes and expenses, as well as ½ of any rental income.

A few years later, you decide you want out.  The income (when there is any) doesn’t seem worth the headache, and in some years, you even wind up paying more than your share of the expenses because your partner can’t seem to keep a steady day job.  The two of you don’t get along anymore and you really just want out. What can you do?

The law in Tennessee does not require you to continue owning property jointly with another person if you don’t want to. If you can’t reach agreement with your partner about an exit plan, then you can file what is referred to as a partition lawsuit.    There are two ways a Court can partition, and it depends on the particular facts of any given case. You will likely need an attorney to help you navigate the particular circumstances of your case.

Partition “in kind”

If a Court partitions a piece of land “in kind,” it means the property will be physically divided among the co-owners – almost quite literally splitting the baby.  An example would be if two people owned a two acre tract of raw land and the Court simply divided it in half, giving each person one of the two acres.

Partition “by sale”

A partition “by sale” is exactly what it sounds like. The Court will order a sale of the property and then distribute the money proceeds to the parties. The  Tennessee Code provides that a party is entitled to a partition by sale if either (1) the property is situated such that it can’t be divided, or (2) when it would be manifestly to the advantage of the parties for the property to be sold instead of divided.   For example, a Court can’t split a house and give each person half, so it would instead order the house to be sold.

Expenses and Distribution of Income

What if you paid more than your share of expenses prior to filing the lawsuit, or what if you don’t think the rental income was distributed properly? In a partition lawsuit, you can ask the Court to award you that money in addition to what you are owed for your ownership interest. The key to recovering this additional money is proving the amount you are owed. Hopefully, you have kept, or can obtain, records concerning your income and expenses associated with the property. In some cases, you might be able to obtain financial records during the partition lawsuit that may help prove what you are owed.

Settlement or Partition Lawsuit?  We can help.

If you currently own a piece of property with another person and you’ve decided you no longer want to continue in the joint ownership, we can help you fashion a solution.  Filing a lawsuit should not be your first step in any dispute, but a partition action is an available legal tool if an agreement can’t be reached. We are experienced at helping our clients negotiate resolutions without the necessity of filing a lawsuit; however, because we are trial attorneys, we know our way around the courthouse and are prepared to file and handle a partition action on your behalf, if necessary.   Please call us today at 901-372-5003 if we can help you.

Get it in writing: A handshake probably won’t do.

memphis contract lawyer

The Dangers of Unwritten Agreements

You’ve heard it before:  “If it’s not in writing, it doesn’t exist.”  While that is not technically true, we don’t recommend entering into an unwritten agreement or contract of any significance.  If it is important to you or to your business, get it in writing. Unwritten agreements, or oral contracts, can be legally enforceable in Tennessee in certain cases, but they are extremely difficult to prove in court.

Contracts Required to be in Writing

According to a legal rule called the “statute of frauds,” there are some agreements that are required to be in writing in Tennessee, including:

  • An agreement to pay someone else’s debt
  • An agreement concerning the sale of real property or land
  • A lease with a term longer than a year
  • A contract that can’t be performed or concluded in a year
  • A contract for the sale of goods for over $500.00

What Should a Contract Say?

Any contract should contain the essential terms of the agreement. The contract should clearly spell out what each party is going to do in plain language.  Say what you mean, and mean what you say. If you don’t clearly spell out your intentions in a contract, then you run the risk of having a judge decide what your agreement means.  You wouldn’t believe the number of cases in Tennessee where courts have had to interpret contract terms and agreements because of drafting failures on the front end.  Do you really want a judge telling you what your contract says?

Be Smart: Hire an Attorney During Contract Negotiations

Contract law and litigation can be complicated, but it doesn’t have to be. One way to avoid disagreements, misunderstandings, and the high cost of contract litigation is to involve an experienced lawyer during contract negotiations.  Many people believe that hiring a lawyer during contract negotiations will signal distrust of the other party, but that is not true in today’s business world. It is common, and usually expected, that attorneys will be involved. We are often successful in obtaining favorable contract language for our clients that they would have never known to request had they not involved an attorney.  It is sometimes a matter of knowing what to ask for, and we can help you with that.

We are not only experienced in drafting and reviewing agreements and contracts, but we are trial attorneys.  Call us today at 901-372-5003 if you need help with a contract or agreement.

Can I Represent Myself in General Sessions Court?

injury lawyer memphis for general sessions court

Can I represent myself in General Sessions Court?

Can you represent yourself in General Sessions Court?

Yes, you may always represent yourself in any court matter – it’s called proceeding pro se.  However, you may only represent yourself.

If the true party in the case is actually a corporation or limited liability company (LLC) – even if you are the sole shareholder/owner/member – then you may not represent “yourself” because, technically-speaking, a business organization is a distinct legal entity separate and apart from you as a natural person.  And unless you are a lawyer, you cannot represent another person or entity, or else you would be guilty of the unauthorized practice of law, and no Judge will allow that.

Should you represent yourself in General Sessions Court?

If you are the party in the case as an individual, or as a sole proprietorship, then you may always represent yourself.  The real question, though, is should you?  Many people believe General Sessions Court is a “small claims court” similar to the TV court shows where two parties stand at podiums and, with great drama, show or tell the Judge whatever they want. While it is true that General Sessions Court disputes are typically limited to smaller matters under $25,000, and further that any judgment can be appealed to Circuit Court, it would be a mistake to assume that General Sessions Court is somehow informal or easy.

In many cases, litigating in General Sessions Court is easier and less expensive than litigating in Circuit Court. However, General Sessions Court is serious. All parties, even those representing themselves, must follow the Rules of Court and the Tennessee Rules of Evidence and must observe the proper rules of courtroom decorum.  You cannot simply tell or show the Judge whatever you want.

So the question really is this: do you know the Tennessee Rules of Evidence? Do you know what makes a piece of evidence objectionable? Do you know how to lay a proper foundation to get a document or a witness’s testimony admitted in evidence? Attorneys are trained to know the rules and to use them to their client’s advantage. You may have a perfectly winnable case and lose it because you do not know how to properly present evidence.  We’ve seen it hundreds of times.

Many people say they cannot afford an attorney, while others simply don’t want to pay an attorney to handle something they believe they can handle themselves.  However, is the potential of recovering nothing on your claim – or, conversely, subjecting yourself to a judgment that will be reported to creditors – preferable to paying an attorney fee?

Helpful Resources for pro se litigants

If you truly can’t afford to hire an attorney, here are a few resources you may find helpful:

Rules of General Sessions Court (Shelby County)

General Sessions Court–Civil Case Forms

Attorney of the Day Courthouse Project. Each Thursday Memphis Area Legal Services hosts an advice clinic at the Shelby County Courthouse at 140 Adams Avenue in Memphis.  Volunteer attorneys meet with walk-in clients and provide advice and counsel.  The clinic starts at 1:30 p.m. in Room 134 of the Courthouse.

Saturday Legal Clinics. These clinics, also hosted by Memphis Area Legal Services, operate on a first come, first served basis and provide opportunity for members of the community to meet with an attorney to discuss their legal issues.  Volunteer attorneys provide advice, counsel, referrals.   Memphis clinics are held the second Saturday of every month at the Benjamin Hooks Main Library, 3030 Poplar Avenue, starting at 9:30 a.m. until 12:30 p.m. Covington clinics are held on a Saturday every other month at First Presbyterian Church, 403 S. Main Street, starting at 10:30 a.m. until 1:30 p.m.

We practice in General Sessions Court. 

The attorneys at Wiseman Bray PLLC regularly practice in General Sessions Courts in Memphis, Shelby County. We know the rules and we will use them to effectively present your case or defense to the Judge. We represent both Plaintiffs and Defendants. If you have a pending General Sessions case, or if you are thinking of suing someone in General Sessions Court, and you’d like to talk to us about it, please call us at 901-372-5003.

Can We Make Them Pay My Attorney Fees?

Can We Make Them Pay My Attorney Fees?scales

Can we make them pay my attorney fees? This is one of the most common questions we receive from our clients who find themselves involved in lawsuits. Unfortunately, the answer in most cases is no. Tennessee follows the “American Rule” which means that each party in a lawsuit pays their own attorney fees, no matter who wins. There are, however, exceptions to this rule. Two of the most common exceptions are as follows:
(1) Certain state and federal statutes allow the prevailing party to recover attorney fees. Examples: certain consumer protection, civil rights, and employment claims, etc.

(2) A contract provision where the parties to a contract have agreed that the prevailing party in a dispute will be entitled to recover attorney fees. Examples: leases, commercial contracts, collections, home sale contracts, etc.

Your attorney should examine the allegations in the lawsuit and any contracts that may apply to determine whether it is possible for you to recover your attorney fees. If you are a business person and you don’t have attorney fee provisions in your contracts, consider adding them. Here are some answers to additional questions we are frequently asked about attorney fees:

“This lawsuit is frivolous! Can we make them pay for all the money I have to spend dealing with this?” The standard for “frivolous” is pretty high. Even lawsuits that are eventually determined to have no merit are not necessarily frivolous. Very few cases are. Unless your case meets one of the exceptions, you probably can’t recover your attorney fees, even if you win.

“My contract provides for attorney fees. What are the chances I actually recover them?” If you are the prevailing party and you obtain a judgment, that judgment should include an award of what the judge deems a reasonable attorney fee. Your award may or may not equal what you actually paid your attorney. If your case is resolved through settlement, the attorney fee provision is often used as a negotiation point to increase the overall amount of money you recover.

“If the judge awards me an attorney fee of less than what I actually paid my lawyer, does my lawyer have to give my money back?” It depends on what your fee agreement is with your lawyer, but in most cases, the answer is probably no. Your fee agreement with your lawyer is independent of any judgment you may recover from the opposing party.

If you need help drafting an appropriate attorney fee provision for your contracts, or if you have a question about recovery of attorney fees in a lawsuit, please call us at 901-372-5003.

Construction Contract? Confirm Your Contractor is Properly Licensed First!

construction contract lawyer

Construction Contract? Confirm Your Contractor is Properly Licensed First!

I spent a good amount of time one week working with a client to cancel his construction contract after learning that the contractor was not properly licensed to build his new house. What started out as an exciting time in this client’s life turned out to be a big mess.  I was eventually able to work out a solution with the unlicensed contractor, but not before he had hired legal counsel of his own.

In Tennessee, residential and commercial construction contractors are regulated by the Tennessee Board for Licensing Contractors.  Per the Board,

A contractor’s license is required prior to contracting (bidding or negotiating a price) whenever the total cost of the project is $25,000 or more.

For residential construction, licensed contractors may contract to build houses so long as the total cost of the project does not exceed the monetary limit established by the Board.  A contractor may apply to have his limit increased after submitting documents showing financial stability.

Frequently however, home builders enter into contracts with customers for projects that exceed their monetary limits.  Many problems can come into play when this happens.  Contractors jeopardize their licenses and expose themselves to fines from the Board. Contractors open themselves up to not being able to collect under the terms of the construction contract, even if everything goes well.  Customers run the risk of the project being shut down and having to incur additional expenses. Customers may even have to hire a replacement contractor.

Before Your Enter Into a Construction Contract. . .

Check to see if your contractor is properly licensed!  Construction litigation  can be lengthy, complex, and expensive. Many problems can be avoided if customers do a little quick research to confirm that the contractor they want to use is fully and properly licensed.  You can do that by clicking here.

If you need a construction or contract lawyer, call me at (901) 372-5003 or email me here. 

By: Chris Patterson

Construction Contract Lawyer Chris Patterson

WISEMAN BRAY PLLC

8001 Centerview Parkway, Suite 103

Memphis, Tennessee 38018

(901) 372-5003 Office