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Show ' 1 by Richard J. Maughan, B.S., L.L.B. A creditor Is worse than a master; for a master owns only jour person, a creditor owns your dignity, and can belabor that. Victor Hugo 1802-1885) PERSONAL LIABILITY This is an aspect of our daily existance which we all hope to avoid . . . especially when such liability reaches reach-es into our pockets for satisfaction. sat-isfaction. In most cases it is like paying for the proverbial "dead horse." And in most cases the first thought is, "I I'PWUJJIIB.p..lBMiaP.IIII .-'". Vi- . , - . ! gality for some years to come. NOW, IF THE STORY ALWAYS AL-WAYS ENDED THERE, THERE WOULD BE NO REASON REA-SON FOR THE STATUTE I AM GOING TO TELL YOU ABOUT IN A MOMENT, (BUT IT DOESN'T). This is the way our little story ends; and this ending is not an infrequent one. One day one of the artisans who had worked on the addition to the house, knocks on homeowner's door and makes a claim for, let us say $186.00. Homeowner wants to know why, and the ar-isan ar-isan says it is because the contractor con-tractor did not pay him for the work he did. CAN THE ARTISAN RECOVER FROM II03IEOWXER? Assuming that the artisan's claim for wages is valid, and that the contractor didn't pay him as was promised, the artisan can move directly against Mr. Homeowner and collect his wages and this is so irrespective irrespect-ive of the fact that Homeowner has already paid his contractor a price which was supposed to take care of all charges attributable attribut-able to the new addition to the home. didn't mean to Maughan do this" or "That isn't what I intended," or, "I should have known what I was doing." Right!' One should know what one is doing. An area of the law wherein personal liability frequently attached at-tached without warning, is that Which concerns private building contracts. THE PRIVATE BUILDING OR IMPROVEMENT CONTRACT The situation which produces this particular type of liability arises when one enters into a contract for the contraction of a building, an addition to it, its alteration, or its repair. The term building is here used in its generic sense, i.e., any building build-ing or structure. When one is ready to engage a contractor to do the job for him. Let us assume as-sume it is an addition to his house. When the contract is signed Mr. Homeowner obligates himself him-self to pay the contractor a specified and agreed price for the finished work. Now, let us assume that the finished work will (as it often does) require the services of more than one building artisan each of the building artisans using the particular par-ticular materials which are a part of their skill. These artisans arti-sans may not be employees of the contractor in the usual sense, but workmen of another stripe, viz., sub-contractors. They look directly to the contractor for their money, and as we all know they do not work for nothing. In addition, the building materials mate-rials which go to make Mr. Homeowner's addition look as he wants it to also, have to be paid for, and under his contract con-tract Mr. Homeowner expects his contractor to pay for them. At last the job is finished Homeowner is satisfied with it, and the contractor presents his bill. Out come the savings, the contractor is paid in full, and Homeowner settles down to appreciate ap-preciate the results of his f ru- WHAT COULD HOMEOWNER HAVE DONE? He could have required a performance bond from his contractor a bond which would conditioned for the faithful faith-ful performance of the contract. In other words, the bond which the contractor could have made to secure would have protected Homeowner from demands such as the one which the artisan made upon him. THE UTAH STATUTE There is a statute in the state of Utah which is designed to prevent the unpleasant liability which Mr. Homeowner incurred. When the contract price is of a certain amount it is mandatory that one entering into a contract for the construction, con-struction, alteration, repair, or addition to any building or structure, or certain improvements improve-ments upon land secure from the contractor a bond for the faithful performance of his contract. con-tract. One who fails to require such a bond of his contractor becomes personally liable for labor and materials furnished, in the event of default by the contractor. con-tractor. TWO PEFENSES There are two defenses against the incurrance of personal per-sonal liability of this kind. the advise and counsel of your attorney, and the reliability and financial responsibility of your contractor. IN ALL THINGS LEGAL, SEEK LEGAL COUNSEL |