Saturday, June 12, 2010

Dangling Deposit Over Flooring- Court Case

Dec 28 2007

Verica Kivac lives in a renovated Brampton apartment she owns, one recently renovated with a new kitchen and hardwood floor.

The first flooring contractor she found - had agreed to get the job done - before she moved in last spring.

"He said if I wanted to reserve my time, I had to give him $4433," says Kivac.

It was a large upfront deposit on a $6900 dollar job.

And the contractor did do part of the work: ripping up and removing the old carpet.

But Kivac was really floored when later, the contractor didn't come through with the hardwood or install it. Despite her persistent phone calls.

"And I (said) to him, 'you better stop the game you are playing with me.' And after that he didn't answer at all," Kivac said.

She had hired Theocharis Georgopoulos - who runs a company called Floors by Harris. We first called him early this fall to find out what happened to Kivac's money.

In a statement, his lawyer told us Georgopoulous spent a:

"fair amount of time...attending...two stores to search out and order flooring that would satisfy Ms. Kivac's specfic preferences..." - in other words, finding the type of floor she wanted.

He said: "there was a great deal of work...done...in removing and disposing of the existing carpet and tile" from the home. But not $4400 worth!

Kivac said the workmen were there a couple of hours, at most. She hired another company to put in the hardwood floor.

"I do want my money back, because I was working very hard to save that money," she said.

As a homeowner, it's usually not a good idea to pay large deposits up front: if the contractor doesn't show up, it's not easy to get your money. Reputable renovators charge you for work in stages.

"I'm very frustrated, I am disappointed," Kivac said.

When she called us -- we phoned the contractor and his lawyer repeatedly - for an explanatation.

Earlier this month, Georgopoulous finally paid back $4000, representing the full deposit less $400 for the removal of the old carpet (Floors by Harris maintains the value of that work was actually $1400.)

As we finally caught up to Georgopoulous with a camera rolling - he had no explanation for why it took so long to return the balance of the money. His lawyer told us Floors by Harris has hundreds of satisfied customers.

But Verica Kivac says she's not among them.

Kivac went to the police, she also filed a small claims court action. There is at least one other complaint against Floors by Harris with the Ontario consumer ministry.

If you're doing home renovating - negotiate the smallest deposit you can. In some cases, like custom kitchen renos -it's fair to be asked to pay more. But in general, for most projects, think: pay as you go - and you'll cut your risk.