Suing Your Home Improvement Contractor – Section 20-396 of the New York City Administrative Code

People hire contractors to perform certain construction work in their home or residence. Unfortunately, the reality of life is that things can and do go wrong for a variety of reasons which can lead to a lawsuit between the homeowner and the home improvement contractor.  Here, we explore one option for suing a so-called home improvement contractor. Specifically under the New York City Administrative Code which permits a homeowner to sue their home improvement contractor for any false statements made by the home improvement contractor in order to induce the homeowner into entering into the home improvement contract.

1. Section 20-386: provides that: 2. “Home improvement” means the construction, repair, replacement, remodeling, alteration, conversion, rehabilitation, renovation, modernization, improvement, or addition to any land or building, or that portion thereof which is used or designed to be used as a residence or dwelling place and shall include but not be limited to the construction, erection, replacement, or improvement of driveways, swimming pools, terraces, patios, landscaping, fences, porches, garages, fallout shelters, basements, and other improvements to structures or upon land which is adjacent to a dwelling house. “Home improvement” shall not include (i) the construction of a new home or building or work done by a contractor in compliance with a guarantee of completion of a new building project, (ii) the sale of goods or materials by a seller who neither arranges to perform nor performs directly or indirectly any work or labor in connection with the installation of or application of the goods or materials, (iii) residences owned by or controlled by the state or any municipal subdivision thereof, or (iv) painting or decorating of a building, residence, home or apartment, when not incidental or related to home improvement work as herein defined. Without regard to the extent of affixation, “home improvement” shall also include the installation of central heating or air conditioning systems, central vacuum cleaning systems, storm windows, awnings or communication systems.”
2. “Home improvement contract” means an agreement, whether oral or written, or contained in one or more documents, between a contractor and an owner , or contractor and a tenant, regardless of the number of residences or dwelling units contained in the building in which the tenant resides, provided said work is to be performed in, to or upon the residence or dwelling unit of such tenant, for the performance of a home improvement and includes all labor, services and materials to be furnished and performed thereunder.
3. Section 20-387 provides that: “(a) No person shall solicit, canvass, sell, perform or obtain a home improvement contract as a contractor or salesperson from an owner without a license therefor. (b) A license issued pursuant to this subchapter may not be construed to authorize the licensee to perform any particular type of work or engage in any kind of business which is reserved to qualified licensees under separate provisions of state or local law, nor shall any license or authority other than that which is issued or permitted pursuant to this subchapter authorize engaging in the home improvement business.
4. Section 20-396 provides that: “a. Any contractor, canvasser or seller of home improvements who shall knowingly make any false or fraudulent representations or statements or who makes or causes any such statements to be made in respect to the character of any sale, or the party authorizing the same, or as to the quality, condition, or value of any property offered by him or her for sale, shall be deemed guilty of a misdemeanor, and, upon conviction thereof, shall be punished by imprisonment not exceeding one year or by a fine not exceeding one thousand dollars. b. Any person who is induced to contract for home improvements in reliance on false or fraudulent representations or statements knowingly made, may sue and recover from such home improvement contractor or solicitor a penalty of five hundred dollars in addition to any damages sustained by him or her by reason of such statements or representations made by the contractor or by his or her agents or employees.