Is there a statute of limitations for a supplier going after a homeowner for money owed by a bankrupt builder?

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Three years ago I paid my builder for the appliances ($13,000) I picked out for my new home. The builder was supposed to pay the appliance shop, but apparently never did. Now the builder is out of business and the appliance store is sending me invoices and threatening legal action. I have explained this to the appliance shop, and I sent them a copy of my canceled check (made out to the builder) a year ago. Is there a statute of limitations in SC that would prevent them from trying to collect money from me for appliances that I already paid for?

Asked 1/8/2010 under Business | 270 View(s) | More Legal Topics

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Business Law Answers

Robert Johnston / Law Office of Robert J. Johnston Attorney Answered 2 years ago | Contributor with 0 answers This attorney is licensed in South Carolina

If this is a Breach of Contract case, and it sounds like it might be, then the Statute of Limitations is Three (3) years. You need to call and attorney immediately. I would not wait. I would call one today.

You may also want to contact your local county solicitor's office. It sounds like what the builder did may have been criminal. If the builder took your money with no intentions of providing the appliances, then that is a crime. If you call your county solicitor's office, they may be able to tell you if charges have already been brought against this builder.

Please call an attorney immediately.

Clay Olson / Olson & Good Answered 2 years ago | Contributor with 0 answers This attorney is licensed in South Carolina

Please email me at clay.olson@olsonfirm.com

I can tell you that, generally, a mechanics lien would be the appropriate recourse for the appliance dealer although it must be filed within 90 days of delivery.  Since that is long passed, it seems that the dealer is out $13,000 and has not had success in collecting from the contractor.  If you paid the contractor, that is an absolute defense in our state.  The statute of limitations is tricky as it is typically three years but can vary in instances of fraud, etc.  Sometimes it is longer than three years.  Email me and I can speak further.

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