I want you to imagine something for a second. You’ve built a business from the ground up—maybe it’s a maintenance company where you’re the one making sure the HVAC doesn’t die in July or the roof doesn’t leak during a Nor’easter. You’ve done the work. You’ve kept your promises.
But then, the checks stop coming.
First, it’s a “glitch in the system.” Then, it’s a “manager needs to sign off.” Pretty soon, you’re looking at hundreds of thousands of dollars in unpaid invoices while you’re still paying your crew out of your own pocket. It’s that gut-punch feeling where you realize a handshake and a “we’re good for it” isn’t going to pay the bills.
That’s exactly where one of our clients stood before we took their case to arbitration. This wasn’t just a minor disagreement over a leaky faucet; it was a massive breach of contract. And honestly? Watching them get their due—a $900,000 award—was one of the most satisfying moments of my career.
If you’re a homeowner wondering why your contractor is so obsessed with “the fine print,” or if you run a service business yourself, this story is for you. If you’re currently feeling like a client or vendor is taking advantage of you, don’t be blindsided—there is a way out.
Why “Good Faith” Isn’t a Legal Strategy
We all want to believe that if we do good work, we’ll get paid. But in the world of professional maintenance, things get messy fast. “Breach of contract” sounds like a dry, legal term, but in reality, it’s deeply emotional. It’s about broken trust.
When we talk about a maintenance company getting stiffed, it usually boils down to three things:
- Scope Creep: The client keeps asking for “just one more thing” until the original contract is unrecognizable.
- Payment Delays: The “net-30” terms turn into “net-whenever-we-feel-like-it.”
- The Ghosting: Work is completed, but the client suddenly finds “faults” that weren’t there before to justify not paying the final bill.
In the case where we recovered $900K, the opposition tried every trick in the book. They claimed the work wasn’t up to snuff. They tried to claim the contract was vague. But here’s the thing—we had the paper trail.
The Secret Weapon: Arbitration vs. Litigation
Most people hear “legal dispute” and think of a courtroom with a judge in a black robe. But for this maintenance company, the win happened in Arbitration.
Think of arbitration like a private version of court. It’s often faster, and you can choose an arbitrator who actually understands the industry. If you’re fighting over complex mechanical maintenance, you want someone who knows a boiler from a toaster, right?
We often suggest mediation and arbitration because it cuts through the years of waiting for a court date. In this specific case, it allowed us to present the evidence—every invoice, every email, every photo of the completed work—to a neutral party who could see exactly how the contract had been violated.
The “Boilerplate” Trap
I see this all the time. A small business owner downloads a “standard” contract from the internet. They think they’re protected. But those generic forms are often full of holes. If you’re a homeowner, you should actually be happy when a company gives you a detailed contract. It means they know their worth and they’ve defined exactly what you’re getting.
If you’re worried about what’s in your current agreements, looking into breach of contract disputes can give you a head start on what to fix.
Expert Insights: From the Attorney’s Desk
Look, I’ve been doing this a long time. I’ve seen the good, the bad, and the truly ugly of business relationships. Here are a few things I wish every homeowner and business owner knew:
- The “Paper Trail” is your best friend. I’m serious. If you have a phone call where you agree to a change, follow it up with a text or email. “Hey, just confirming we’re adding the porch repair for an extra $500.” That ten-second email is worth its weight in gold if things go sideways.
- “Nice” isn’t a legal defense. I’ve had clients say, “But we’ve been friends for years!” That’s great until the friend’s business partner decides to cut costs and your invoice is the first to go. Professionalism protects friendships; it doesn’t hurt them.
- Know your “Notice” periods. Most contracts have a clause saying you have to give notice if there’s a problem. If a maintenance company doesn’t follow those specific steps, they might lose their right to sue later. It’s tick-tock, people. Timing is everything.
Sometimes, the best move isn’t a lawsuit—it’s a contract negotiation that fixes the problem before it even starts.
How to Apply This Today (Homeowner & Pro Tips)
Whether you’re the one hiring or the one being hired, you can protect yourself right now. You don’t need a law degree; you just need to be a little bit more intentional.
If You’re the Homeowner:
Check the insurance and the specific “scope of work.” If a company doesn’t list exactly what they are doing, you’re leaving yourself open to a vendor not honoring their contract. Demand clarity. It protects your house and your wallet.
If You’re the Maintenance Company:
Audit your “Standard Terms” today. Does your contract allow for interest on late payments? Does it allow you to stop work if you aren’t paid? If the answer is “I don’t know,” you’re driving a car without a seatbelt.
FAQs: The Quick & Dirty Answers
What if I only have a “handshake” agreement? Can you still win? Maybe. Is it a nightmare? Yes. You’ll spend more on legal fees proving the agreement existed than you would have spent getting a lawyer to write a proper client service agreement in the first place.
Does a $900K award mean the client actually gets $900K? In arbitration, the award is a legal judgment. If the other side still refuses to pay, we have to go to court to “confirm” the award and start the collection process. But having that award in hand is like having a golden ticket. It makes the rest of the process much, much easier.
How do I know if a “breach” is serious enough for a lawyer? Honestly, if you’re asking yourself that question, it probably is. If the amount of money at stake would make it hard for you to sleep at night or make payroll, call a professional.
The Moral of the Story
That $900,000 win wasn’t just about the money. It was about standing up for a maintenance company that had been pushed around by a bigger entity that thought they could get away with it. It was about the fact that even the “little guy” has rights when the paperwork is right.
But look, I’d much rather help you prevent a $900K disaster than have to fight one for three years.
If you’re feeling that familiar knot in your stomach because a project is going south or a client is dodging your calls, let’s talk. You don’t have to figure it out alone. You can reach out to us or check out our business law services to see how we can shore up your defenses.
