Case Summary
I. Background
This dispute involves payments made to Bryan Tipton pursuant to a contract between these two parties for an extensive kitchen remodeling project.
To complete the remodeling project, the exterior wall of an existing kitchen was to have been extended out from the side of the home approximately six feet.
Planning for the project began, and an initial draft contract dated October was completed.
Under the terms of the contract, the first payment of $20,000 was due upon acceptance of the proposal, and the second payment of $45,000 was due upon permit approval. The first payment of $20,000 was made to Mr. Tipton in October when the contract was signed.
Initial Actions Taken for the Kitchen Remodeling Project
During the preparation stage for the kitchen remodeling project, a contract was executed between Mr. Tipton and an architect to prepare the plans for the project.
Contact was also made with the Village of Wilmette concerning the project.
During this initial phase, the Village advised Ms. Acciari and Mr. Tipton that before the kitchen remodeling could proceed, a variance would be needed from the Village due to the proximity of the proposed extension to the residence to the curb.
To secure the needed variance, the architect did prepare plans and Mr. Tipton did attend a few meetings with the Village during the period October to February. However, during this period, the owners did the substantial portion of the work (e.G., preparing documentation and narrative explanation in support of the variance request; speaking with officials from the Village concerning the variance; attending all Village meetings associated with the request) needed to secure approval for the variance.
On January 13, the Village of Wilmette granted approval for the variance needed for the kitchen remodeling project, and the next stage was to obtain the permit from the village.
A final contract with modifications was completed and signed February 10.
On February 10, Mr. Tipton informed the owners that he had contacted the Village and that we would have the permit on Friday, February 13. He indicated that he would need the $45,000 second payment to schedule/make payments to the subcontractors.
Immediately prior to the anticipated beginning of work on the kitchen remodeling project, when it appeared the permit approval was imminent, the second payment of $45,000 was given to Mr. Tipton upon his request.
The permit was not issued on Friday because a further impediment was noted by the Village in the form of a storm sewer line and easement running between the home and the home of her neighbor.
From the point that the issue of the sewer line became known, Mr. Tipton became increasingly uninvolved in pursuing resolution of this issue. Mr. Tipton was unresponsive to telephone messages, missed without notice numerous meetings with the Village that he had indicated he would attend, and did not follow through on actions that he stated to the owner he would resolve.
While working to obtain a permit, the owner repeatedly requested that Mr. Tipton return, at a minimum, the $45,000 because the permit had not been obtained. While Mr. Tipton indicated he would, he never refunded any of the money.
No work was ever performed.
In an effort to settle the above matter, on May 26, a letter demanding Mr. Tipton immediately refund $45,000 and arrange a meeting to resolve disposition of the remaining $20,000 was sent to him. Mr. Tipton did not respond to this letter.
The contract called for formal arbitration by the American Arbritration Association. This was completed and Mr. Tipton would not paid 1/2 of the arbritration fees as required or participate in the procedings.
On September 21, the American Arbitration Association issued an Award of Arbitrator - Mr. Tipton was to pay th eowner$65,000, plus 5% interest from June 4 to the date of the award, and the amount was to be paid within 30 days from the date of the award.
Bryan Tipton hasn't paid anything todate (January).
Melba
Wilmette, Illinois
U.S.A.
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