Question

BUSINESS LAW!!

Mary and Bob Raine own a summer cabin in the Poconos Mountains. The Raine's contract with Julian, a local painter, to paint the cabin before the summer season. They agree on a price of $5,000, including labor and materials. Julian completes the job on time, but Raine's claim financial hardship and only pay him $2,000 of the charges.

1) Can Julian Adrian obtain the rest of what he is owed from the Raine's? If so, what are his options?

2) Assume that the Raine's gave a mortgage to Fox Credit Union securing the cabin as collateral five years prior to them hiring Julian to paint it, would Fox Credit Union's security interest be effected in any way as a result of Raine's failure to fully pay Julian?

Answer 1

Ans. 1- Yes, Julian Adrian can obtain the rest of & 3000 owned from the Raine's. Following are the options :- To file a lawsuit against Bob Raine and obtain a judgement before it can take drastic collection action such as garnishing your wages or bank account or placing lines against real estate. Ans. 2- Assuming that the Raine's gave a mortgage to Fox credit union securing the cabin as collateral five years prior to them hiring Julian to paint it. In this case, Fox credit union became the owner of the cabin as collateral five years prior to them hiring Julian to paint it. Therefore Fox credit union's security interest would not be effected in any way as a result of Raine's failure to fully pay Julian. Hence Raine is liable to fully pay Julian and Fox credit union's security will not be effected due to its ownership of cabin.