Doctors say builder owes for unfinished house

By Justin Anderson | Jun 10, 2009

HUNTINGTON – A pair of doctors claim a homebuilding company left a $472,000 home in Raleigh County unfinished and unpaid bills for materials and subcontract work.

Drs. Victor S. York and Jennifer L. Kendall, both of Huntington, filed a lawsuit May 11 in Cabell Circuit Court against Mark Stevens and his company 1st Class Homebuilders.

The plaintiffs say they contracted with Stevens and his company to build the 3,528 square feet house in Daniels.

The contract called for a "turn key home," the complaint says. That means the home would be finished and ready to live in for the contract price.

So far, the plaintiffs say they've paid the defendants $450,000. The remainder of the balance has been left in an escrow account until the house is finished.

The plaintiffs say the defendants have abandoned the project, breaching the contract.

The plaintiffs also allege that the money paid to the defendants has not been used to pay for any of the materials or the subcontractors that were working on the home.

The plaintiffs say Stevens had told them these bills were paid.

The subcontractors and material sellers have approached the plaintiffs seeking payment, the complaint says. They claim they are still owed $80,000.

The plaintiffs believe it will cost about $65,000 to finish the home.

The lawsuit alleges that Stevens has inappropriately diverted funds from his company for his personal use and failed to capitalize the company for reasonable risks.

The plaintiffs are seeking a total of $145,000 in specific damages.

Daniel T. Yon is representing the plaintiffs. The case is before Cabell Circuit Judge F. Jane Hustead.

Cabell Circuit Court case number: 09-C-466

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