AM I A HOME REPAIR CONTRACTOR OR HOME IMPROVEMENT CONTRACTOR?

Under the New Jersey Contractors’ Registration Act, a contractor is any person engaged in the business of making or selling home improvements, including business organizations and its officers, representatives and employees.  The Contractors’ Registration Act applies to:

Ø  Persons who, on or after December 31, 2005, advertises in print or puts out any sign or card or other device indicating to the public that they are a contractor in New Jersey or who causes their name or business name to be included in a classified advertisement or directory in New Jersey under a classification for home improvements covered by the Act. 

Ø  Person engaging in any of the activities regulated by the Contractors’ Registration Act in New Jersey, including those located outside New Jersey.

The Contractors’ Registration Act does not apply to persons who:

Ø  Place simple residential alphabetical listings in standard telephone directories about home improvements.

Ø  Must register under the "The New Home Warranty and Builders' Registration Act".

Ø  Perform home improvements upon a residential or non-commercial property they own, their family owns or a bona fide charity or other non-profit organization owns.

Ø  Regulated by New Jersey as an architect, professional engineer, landscape architect, land surveyor, electrical contractor, master plumber or any other person in a related profession requiring registration, certification or licensure by New Jersey and acting within their trade.

Ø  Employed by a community association or cooperative corporation.

Ø  Public utilities as defined by New Jersey Law.

Ø  Licensed under N.J.S.A. 17:16C-77.

Ø  With a net worth of more than $50,000,000 or employed by that retailer.

The New Jersey Contractors’ Registration Act defines home improvement repairs as the remodeling, altering, renovating, repairing, restoring, modernizing, moving, demolishing, or otherwise improving or modifying of all or part of any residential or non-commercial property and insulation installation and conversion of existing commercial structures into residential or non-commercial property.   The New Jersey Contractors’ Registration Act defines "residential or non-commercial property" as any single or multi-unit structure used in totally or partially as a residence and associated structures and the lot or site where the structure is located and which is devoted to the structure’s residential use.

IF I AM A HOME REPAIR CONTRACTOR OR HOME IMPROVEMENT CONTRACTOR, DOES NEW JERSEY LAW REQUIRE ME TO FOLLOW ANY PARTICULAR PROCEDURES

The Contractors’ Registration Act requires certain home repair contractors to:

Ø  Register with the New Jersey Division of Consumer Affairs annually & pay a fee.

Ø  File an amended registration within 20 days after their registration information changes.

Ø  Prominently display their registration numbers at their places of business, in all advertisements distributed in New Jersey, on business documents, contracts and correspondence with New Jersey home improvement consumers and on all New Jersey registered commercial vehicles and leased or owned and used by registrants to provide home improvements (except for vehicles leased or rented to customers of registrants by a registrant or any agent or representative thereof).

Ø  Prominently state the Division of Consumer Affairs’ toll-free telephone number for consumers making inquiries regarding contractors on any invoice, contract or correspondence given to a consumer.

In addition to following the requirements of the New Jersey Contractors’ Registration Act, home repair contractors and home improvement contractors must follow the:  (1) New Jersey Home Improvement Practices Rules require certain contractors to avoid making certain misrepresentations, to include certain language in their contracts and/or invoices and to provide certain warranties and/or guarantees; the (2) the Home Improvement Contractor Registration Rules, which require certain contractors to take certain actions such as securing insurance and displaying certain information and (3) the Plain Language Law.  Other New Jersey and Federal laws may also apply to the contractor’s business operations.

IF I AM A HOME REPAIR CONTRACTOR OR HOME IMPROVEMENT CONTRACTOR, DO MY CONTRACTS HAVE TO MEET ANY LEGAL REQUIREMENTS?

There are many New Jersey laws and regulations that apply to home repair contractors.  The paperwork of home repair contractors – their contracts and even their letterhead -- must often meet certain minimum requirements and failure to do so could result in an automatic violation of the New Jersey Consumer Fraud Act.  If a home repair contractor’s contract omits certain crucial information, even if the home repair contractor’s work is satisfactory, the homeowner can challenge the validity of the home repair contractor’s bill, prevent the home repair contractor from recovering its bill and force the home repair contractor to pay the homeowner’s attorney’s fees and court costs without even proving that that the contractor intended to violate the New Jersey Consumer Fraud Act.

WHAT INFORMATION MUST THE HOME REPAIR CONTRACT SPECIFICALLY INCLUDE?

It would take many pages to list each and every requirement necessary for home repair contracts.  However, here are a few of the many requirements under New Jersey Law for home improvement contracts and home repair contracts valued at over $500 and all change orders to those contracts:

·         In writing & signed by all parties to it.  

·         Clearly and accurately set forth in legible form and in understandable language all terms and conditions.

·         The contractor’s legal name, business address, and registration number.

·         A copy of the certificate of the contractor’s commercial general liability insurance and the insurance company’s telephone number.

·         The contract’s total price to the homeowner, including finance charges.

·         The following conspicuous notice printed in at least 10-point bold-faced type:  "NOTICE TO CONSUMER.   YOU MAY CANCEL THIS CONTRACT AT ANY TIME BEFORE MIDNIGHT OF THE THIRD BUSINESS DAY AFTER RECEIVING A COPY OF THIS CONTRACT.  IF YOU WISH TO CANCEL THIS CONTRACT, YOU MUST EITHER: (1)  SEND A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED; OR (2) PERSONALLY DELIVER A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION TO:  (Name of Contractor), (Address of Contractor), (Phone Number of Contractor).   If you cancel this contract within the three-day period, you are entitled to a full refund of your money.  Refunds must be made within 30 days of the contractor's receipt of the cancellation notice".

·         The Division of Consumer Affairs’ toll-free telephone number for consumers making inquiries about contractors.

IF I OPERATE MY HOME REPAIR CONTRACTING BUSINESS THROUGH A CORPORATION, CAN I BE HELD PERSONALLY RESPONSIBLE FOR A VIOLATION OF THE NEW JERSEY CONSUMER FRAUD ACT?

Yes.  It is not uncommon for New Jersey Courts to hold a home repair contractor or home improvement contractor personally responsible for a violation of the New Jersey Consumer Fraud Act violation, even if there is a corporation.

IF MY CONTRACT VIOLATES THE NEW JERSEY CONSUMER FRAUD ACT, CAN I STILL GET MY BILL PAID?

If a home repair contractor or home improvement contractor that violates the New Jersey Consumer Fraud Act sues a homeowner to get paid on a job, there is often a solid chance that:  (1) the contractor’s bill will be cancelled in whole or part; and (2) the contractor shall have to pay the homeowner’s attorney’s fees and court costs for having to defend against the contractor’s lawsuit.  For example, if the contractor violates the New Jersey Consumer Fraud Act by failing to issue the homeowner a proper contract with the total price of the job, the contractor’s good faith and excellent workmanship shall not protect the contractor.    

WHAT HAPPENS IF THE HOME REPAIR CONTRACT OR NEW JERSEY CONSUMER FRAUD ACT CLAIM INVOLVES A CORPORATION, PARTNERSHIP OR LIMITED LIABILITY COMPANY?

In cases involving a business, the officers of corporations, partnerships, limited liability companies of the business cannot generally represent themselves or their companies in the Superior Court of New Jersey, Law Division, Civil Part or in Law Division Special Civil Part (unless the dispute is in Special Civil Part and the amount at issue does not exceed $3,000).  There may be some exceptions to this rule, such as where the case involves a summary action for possession of premises.   Also, if you sue a company and the company represents itself at trial and you thereafter win the case and recover a judgment, it is possible that the company shall get the judgment overturned because they were not permitted to appear in court for themselves in the first place!

CAN I HANDLE A NEW JERSEY HOME REPAIR OR CONSUMER FRAUD DISPUTE BY MYSELF?

Only persons age 18 or older are able to file a complaint, answer or counterclaim for themselves (minors must file a complaint, answer or counterclaim through their parent or guardian). For those home repair contractors that qualify to handle their own home repair and consumer fraud disputes, they may be able to successfully handle cases themselves, from filing the first paperwork to the collection of a judgment.  However, many other people involved in lawsuits who represent themselves make mistakes that lead to the dismissal of their cases or that result in the entry of a money judgment against them.  The greater the money at stake, the greater the reason to consider using the services of a competent attorney licensed to practice law in New Jersey to handle part or all of the case.  The following are reasons to use an attorney to handle part or all of your case:

·         court fees often change

·         court rules often change

·         court employees cannot give you “free” legal advice and a judge may refuse to let you claim that you were right in taking an action (or in deciding not to take action) because you relied on advice from such employees

·         court forms available on websites may not cover every situation you may face in court

·         each case has its own particular legal issues and therefore, its own challenges

·         it is very common for people to file inadequate or incorrect complaints that result in the complaints or answers to complaints being rejected by the court or being dismissed by the court after filing and before or after trial because of procedural deficiencies  

·         it is not uncommon for judges to get very frustrated by an unrepresented party’s lack of preparation or ignorance of the facts or law of the case. 

·         a court has the power to punish unprepared parties or parties who make mistakes, such as by throwing their case out of court or limiting what they can present at trial. 

·         New Jersey has many published cases, laws, regulations, court rules and rules of evidence that are very tricky and that can be used to prevent you from doing much of what you want to do at trial. 

·         it is very common for courts to refuse to allow a party to use or refer to documents or items at trial that the person themselves never prepared.  Often parties stumble into court with a video, photograph, bill or affidavit or other form of written statement, thinking they are going to use it as proof that they lost money or that they are not responsible for someone else’s damages, only to have a judge tell the parties that it is not going to even consider such items or documents. 

·         without the proper preparation, items and documents may never be considered by the court.  Also, if there are any legal issues to be dealt with at trial, you must be prepared to argue them, which may require you to refer to court rules, evidence rules, laws, regulations or published cases. 

·         you cannot show up at court expecting the judge hearing your case to explain court rules, evidence rules, court procedure or the details of the law that applies to your case.  The judge hearing your case is not permitted to give you legal advice.

It is important to remember that even if you have an attorney, you could lose your case.  No attorney can guarantee results in civil disputes.  Hiring an attorney to handle part or all of your case does not guarantee your success.  However, it may provide the assistance you need to win your case, to settle your case or to avoid certain mistakes.

DOES THE LAW OFFICE OF PAUL DEPETRIS HAVE EXPERIENCE HANDLING NEW JERSEY HOME REPAIR AND CONSUMER FRAUD DISPUTES?

Yes.  Paul DePetris has performed the following tasks:

·         prepared contracts and other paperwork for home repair contractors.

·         handled cases for consumers, home buyers, homeowners, home sellers, home repair customers, home repair contractors, home inspectors, real estate brokers and real estate agents in New Jersey Home Repair and New Jersey Consumer Fraud Act disputes.

·         appeared in court in cases involving New Jersey Home Repair and New Jersey Consumer Fraud Act disputes.

·         won summary judgment motions  in New Jersey Home Repair and New Jersey Consumer Fraud Act cases

·         mediated, arbitrated and tried New Jersey Home Repair and New Jersey Consumer Fraud Act cases.

·         settled New Jersey Home Repair and New Jersey Consumer Fraud Act cases.

·         won court awards in New Jersey Home Repair and New Jersey Consumer Fraud Act cases

·         won judgments in New Jersey Home Repair and New Jersey Consumer Fraud Act cases

Mr. DePetris has appeared before the Superior Court of New Jersey in the following counties:

Mr. DePetris has also appeared in federal courts - the District of New Jersey in Camden, Trenton and Newark and in the Eastern District of Pennsylvania.

Mr. DePetris is also the author of the following publications:  New Jersey Home Repair and Consumer Fraud & Forms (New Jersey Law Journal Books, 2007); Learned Professionals, Licensed Semiprofessionals and the Consumer Fraud Act:  The Origins of the Licensed Professionals’ Doctrine (New Jersey Lawyer, Oct. 2008); and Liability For Consumer Fraud In Real Estate Transactions (New Jersey Law Journal, March 18, 2009).   Mr. DePetris also gives seminars on the New Jersey Home Repair and Consumer Fraud.

WHAT IF I DON’T HAVE ENOUGH MONEY TO HIRE AN ATTORNEY TO HANDLE MY CASE FROM BEGINNING TO END?

In many situations, the Law Office of Paul DePetris offers alternatives to handling cases for an hourly fee, such as by offering to prepare the court paperwork for you or helping you handle your claim by yourself.  Such flexible methods may allow you to keep the amount legal fees you spend on your case to a fixed sum, while providing you the help you need to handle your case.  For a no cost phone consultation about what the Firm might be able to do for you, call or write an email to Mr. DePetris at:  609-714-2020 or consumerlaw@newjerseylemon.com.