Cancelling HVAC installation

[josh.friends12]

Jurisdiction

California

I had an HVAC contractor provide a quote for replacing the HVAC system at my home. We agreed on the price and I sent him an SMS message stating to put my order. My assumptions at that time were:
1. He would provide me with a written contract stating the terms of the contract, warranty, cancellation policy, etc. It would also include the name of his business, license number along with other details.
2. He would get the required permits and get the required inspections done after the installation. I would be responsible for full payment (since we did not discuss any financing or loan) after the entire process is completed (which includes any required inspections).
He did not provide any written agreement/contract. When I asked him about these items, he said that he would not get any permits or get any inspections done and would need all the money on the day of the installation. At this point, I sent him another SMS stating that I would not move forward with the installation due to personal reasons (I know I should have mentioned actual reasons). Now he is threatening to sue me for $1k + court filing fees + lawyer fees based on the verbal agreement even though cancellation terms were never discussed or signed. He is stating that he had to pay this as a restocking fee for my system. I asked him to provide receipts stating that he incurred this loss on the system that he ordered for me and had to return. He said that his lawyer asked him to not provide any documentation to me. Am I liable for any amount in this case?

 

[Zigner]

He's blowing smoke.

Refer him to California Code, Civil Code - CIV § 1689.6 | FindLaw and then tell him to pound sand.

 

[zddoodah]

I had an HVAC contractor provide a quote for replacing the HVAC system at my home. We agreed on the price and I sent him an SMS message stating to put my order. My assumptions at that time were:
1. He would provide me with a written contract stating the terms of the contract, warranty, cancellation policy, etc. It would also include the name of his business, license number along with other details.

You agreed to this without even knowing the name of the company or anything about the warranty and contract terms??? Didn't the quote that was provided identify the company name?* Did you articulate your assumptions to the contractor in some way?

Now he is threatening to sue me for $1k + court filing fees + lawyer fees based on the verbal agreement even though cancellation terms were never discussed or signed.

Was anything signed? Note that lawyer fees aren't recoverable without a contract providing for same, and no one who isn't an idiot would hire a lawyer over $1,000. That's small claims territory.

Am I liable for any amount in this case?

Because the nature and terms of any contract are unclear, it is impossible for anyone here to assess this intelligently. With respect to the statute cited in the prior response, two things are unclear. First, that statute only applies to a "home solicitation contract," and that term is defined in section 1689.5(a) to mean "any contract . . . for the sale, lease, or rental of goods or services or both, made at other than appropriate trade premises in an amount of twenty-five dollars ($25) or more, including any interest or service charges." It's not clear to me that any contract you made with this contractor fits this definition. Second, the right to rescind discussed in section 1689.6 is only good for three business days (or, in the case of a "service and repair contract" for $750 or less, a longer period). It's not clear to me that whatever attempt at rescission you made occurred in the appropriate amount of time.

* - If all you know is an individual's name, you may be able to identify the contractor and the contractor's license bond surety by running a personnel name search at the Contractors State License Board's website. It's not clear that you have any damages to justify a claim against the license bond, but you could still make a claim with the CSLB.

 

[Zigner]

Second, the right to rescind discussed in section 1689.6 is only good for three business days (or, in the case of a "service and repair contract" for $750 or less, a longer period). It's not clear to me that whatever attempt at rescission you made occurred in the appropriate amount of time.

While true, that clock doesn't start running until the person receives a written copy of the contract with the statutorily required language...

 

[josh.friends12]

Thanks so much for your help and advice.
The quote was verbal over the phone. I was expecting him to send the written contract but it was my fault for not explicitly stating that. He never sent me anything in writing. I guess that was because he was not planning on getting the permits and inspections done. I agree, it was absolutely stupid of me to agree to move forward without getting anything in writing and not explicitly stating that I am expecting a written contract. Lesson learned for the future. Nothing was signed. Only conversations were verbal over the phone. I did send him a text stating that he should put my order. No paperwork was signed by me or by the contractor.

 

[josh.friends12]

I don't want to file a complaint with CSLB as you correctly mentioned that I don't have any damages. I just want to not pay this guy anything as no work was done on my property. He did not share any receipts with me to prove that he has incurred any loss because of me. It seems like he is just trying to bully me to pay for nothing.

 

[Zigner]

I don't want to file a complaint with CSLB as you correctly mentioned that I don't have any damages. I just want to not pay this guy anything as no work was done on my property. He did not share any receipts with me to prove that he has incurred any loss because of me. It seems like he is just trying to bully me to pay for nothing.

Then don't pay him.

 

[zddoodah]

The quote was verbal over the phone.

Then it appears that any contract you may have had was not a "home solicitation contract" such that the statutes cited are not relevant.

I don't want to file a complaint with CSLB as you correctly mentioned that I don't have any damages. I just want to not pay this guy anything as no work was done on my property. He did not share any receipts with me to prove that he has incurred any loss because of me. It seems like he is just trying to bully me to pay for nothing.

Then this is easy. Don't pay. If the guy has a problem, he'll sue you (likely in small claims court), at which point, he'll have to prove any damages (which won't include lawyer fees because lawyers aren't allowed in small claims court).