Is this really true? It doesn't seem like they consulted a lawyer. Consulting your contractor on what to do seems like a conflict of interest.

According to my neighbor, who is a lawyer and likes to drink, this is pretty common. He is on a lot of cases where the lawsuit makes him (the lawyer) more money than either party would have saved or lost had they just settled up front.

The one I remember had to do w/ $1900 worth of lost wedding photos cuz a server died or got deleted. Cost more to twist the knife in court than to just settle.

Probably depends on your local jurisdiction... I am not a lawyer but my own experiences tell me that any kind of civil case below about $50K, the courts would really you rather not bother them with this, and you are going to spend at least 20% of that and several years before you may or may not see a dime.

It's about principles, not money.

Says the man who can afford to spend 3 years in court losing 15k :)

Anyone who takes on building a custom house can easily afford to spend 3 years in court losing 15k.

I'd probably be willing to lose 15k to not spend 3 years in court.

Doubly so if it came after all the stress of custom-building a home. My blood pressure is worth more than that.

"Easily"

Oh and the 15k are only for legal costs. Don't forget rent for 3 years on top of that. And all the money that you'll still have to pay for the construction. And stress (medical bills are not cheap).

Usually they could before they built the house, but the phrase “house poor” exists in common parlance for a reason.