Your Legal Questions Answered
We purchased a tiny home from a company and paid in full a little less than 20k in Jan 2021, we were provided updates overtime that they were building the house and sending us pictures and updates and it was custom made to our design specs. We were waiting on them to finish getting a RV certification but they said they finished our home and were going to deliver it, then suddenly we were ghosted and never heard from them again when we attempted to inquire about the certification and delivery until they mailed a bankruptcy letter. Later we saw on their youtube channel that they had sold our custom house for $45,000 more than double what they sold it to us for, but they never told us they were selling it nor offered us any kind of refund on the money we had paid for the custom tiny home. After they had already sold the home then they decided to file Chapter 11 bankruptcy months later and so we were unable to get our original money invested back nor the tiny home we purchased. Would this case qualify for a Deceptive sales practices lawsuit or a criminal case? We are not the only ones they scammed but we are one of maybe 2 or 3 people who they took money from and who actually had houses they had finished like ours and were sold out from under them prior to them filing bankruptcy with no notification that they were going to try and sell or any refund given. Most people they took money from they hadn't started building the houses yet so there wasn't a complete product, unlike ours. Is there anything we can do? Since they sold our house prior to the filing of bankruptcy?
I'm sorry to hear that you are dealing with this.
Under state law, there may be grounds for breach of contract if the company failed to deliver the custom tiny home as agreed upon or if they sold the home without offering you a refund. Additionally, depending on the specific circumstances, there could be claims for fraud or misrepresentation if the company knowingly deceived you about the status of the home or its intended use.
Finally, the Colorado Consumer Protection Act (CCPA) could be applicable in this case. The CCPA stipulates that a person engages in a deceptive trade practice when they knowingly or recklessly engage in any unfair, unconscionable, deceptive, deliberately misleading, false, or fraudulent act or practice in the course of their business, vocation, or occupation. To establish that a party knowingly engaged in a deceptive trade practice, actual knowledge must be established McCurdy v. Scarpa Motors Ltd.., 2023 Colo. Dist. LEXIS 384.
That the case is in bankruptcy can make things more complicated, and the deadlines for creditors to file in the case are strict. I highly recommend you speak to an attorney as soon as possible. If you would like to speak with an attorney at the firm, please ask for attorney and partner Steve Whitmore, who is among the attorneys here that handle creditor actions such as yours.
We can be reached at (303) 688-0944.
The foregoing information is general information only and should not be relied upon to take, or fail to take, legal action. No attorney-client relationship is formed by this information. __The only manner to obtain complete and adequate legal advice is to consult with an attorney.__
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