In these difficult times, one of the most agonizing experiences a homeowner may face is deciding to undergo a home improvement project, getting quotes, deciding on a contractor, and paying for the contractor's services - only to find that the work was poorly done or not completed at all. To add insult to injury, after homeowners have gone through the trouble of going to court and getting a judgment against their contractor, the homeowners often find that they cannot collect because the contractor has simply disappeared, or is financially insolvent.

Thankfully, the State of Connecticut has provided help for homeowners through a relatively unknown program known as the Home Improvement Guaranty Fund, administered by the Department of Consumer Protection. The Guaranty Fund is a pool of money funded by annual assessments from registered contractors, and this money can be used to help satisfy an unpaid judgment in favor of a homeowner. Homeowners may be eligible for reimbursement of up to $15,000 from the fund, provided their home improvement job of at least $200 was performed on residential property (single-family or multi-family dwellings of six units or less, condominiums, or co-ops) by a licensed home improvement contractor (licensed either at the time the contract was signed, within the two years preceding contract signing, or at the time the court judgment was obtained). If the court judgment includes court costs and attorney's fees in addition to damages, these may also be recuperated from the Guaranty Fund, up to the $15,000 maximum. Homeowners must apply to the Guaranty Fund within two (2) years of the date of their judgment against the contractor. The Guaranty Fund does not cover new home construction.

In addition, for Superior Court judgments, the homeowner and/or their attorney must have also attempted to collect the money owed under the judgment from both the contractor's bank account(s) and/or property by way of a Marshal's "Writ of Execution," and have been unsuccessful in their attempts. If a homeowner obtains a Small Claims judgment, he does not need to attempt to collect using the Writs Execution.

If the contractor obtains a discharge in bankruptcy, homeowners can still apply for reimbursement from the Guaranty Fund, even without getting a court judgment against the contractor. To do so, the contractor must list the homeowner as a creditor in their bankruptcy filings. The homeowner also must provide the contract and proof of payments with their application.

Rucci, Burnham, Carta & Carello, LLP successfully represented a client who had hired a general contractor to perform various renovations on their home. In addition to not completing the work, the general contractor also failed to pay several subcontractors and suppliers who then placed liens on our client's property. In the end, the general contractor filed a Chapter 7 Bankruptcy and listed the various subcontractors, suppliers, and our client as creditors and obtained a discharge of the debt. We obtained the full $15,000 reimbursement from the Guaranty Fund for our client.

If you have paid a contractor for work which was poorly done or not performed at all, you should immediately seek counsel to help evaluate your potential claims and advise you of the best course of action. Even if recovery from the contractor proves to be fruitless, the Guaranty Fund may be available to reimburse part of your losses.