Decatur GA aggressive GC need legal advice

[Connor Castillo]

Hi all,

I hope all is well! Long story short, my brother and I tried our hand at a flip, he is in commercial real estate, and we thought we could use that knowledge in residential. To some degree it was helpful, like for instance in creating contracts. However, our GC who is very bad at keep track of financials starting randomly asking for money without making any progress. At first we would create change orders and pay him to keep the project moving along. However, we looked at our agreed amount and confirmed with him how much we owed him to this point in the project, the next time he asked for money. He said we owed him 89K, he said to date we paid him 80K and he needs the other 9K ASAP. Well, we looked at our bank statements and we paid him 110K to date. 

Our GC lost his mind when we presented this evidence and the signed contract to him. Now he is threatening us and our families. He freaked out, made a bunch of what he calls "overages" and said if we do not pay him his money he will get it out of us one way or another. 

Also, the original way we found him was through Thumbtack. My wife and I found out we were expecting our next child and we wanted to turn our car port into a master bedroom. We wanted to put this project on hold until the flip was complete. Well, our GC texted me saying "I need $9,410 to buy the material for your house right now or the price will go up", I said "what are you talking about, what does this buy?" He said "Oh sorry man I just bought it I need that money ASAP, if I do not get it I will have to stop working on your flip" I asked for an invoice, he promised he would get it to me, it has been two months and I have seen nothing. 

Can anyone point me in the right direction for this? Not only is it getting scary for my family and I, but we have lost all of our money in this. I spoke to one lawyer and he said "you would pay me 29K before you ever saw it from this GC if you pursue it."

Is there any hope we could protect ourselves from this guy and maybe even get our money back?

Thank you for any responses!! 

[Tony Gunter]

@Connor Castillo

In GA only one party has to know the conversation is being recorded. Record the threats, call the sheriff, get a restraining order.

Is he actually licensed? If he’s not licensed, GA courts won’t even hear any case he might want to make. If he is licensed file a complaint against him with GASOS/PLB.

I have questions about how well the contract was worded, and why it was based on anything other than payment at completion of phases (framing, roof, electrical, plumbing etc.) It sounds like you didn’t manage this well either by allowing any variation from the contract, but again guessing on my part. It does not justify the GC but any means though.

Sorry your are having to dealing with this