Property restoration company at center of breach of contract and unjust enrichment action

By Nicholas Malfitano | Feb 1, 2018

PHILADELPHIA – A Croydon homeowner believes a restoration company he hired to rehabilitate his property after a fire has unjustly enriched itself at his expense in a dispute over payments connected to that same restoration work.


PHILADELPHIA – A Croydon homeowner believes a restoration company he hired to rehabilitate his property after a fire has unjustly enriched itself at his expense in a dispute over payments connected to that same restoration work.

Larry Church of Croydon filed suit in the Philadelphia County Court of Common Pleas on Jan. 25 versus MDL Restoration, Inc. of Tullytown and Bank of America of Charlotte, N.C.

According to the lawsuit, Church hired MDL to perform restoration services after a fire loss to his property on Feb. 28, 2017. Upon noticing the damage, Church presented a claim to his insurance company, Allstate, and contracted with Capitol Adjustment, to assist in the processing of his claim, the suit says.

Allstate then sent a check to MDL for $22,633.75 in accordance with the claim, made payable to MDL, Church and Capitol, the suit says.

“Plaintiff and Capitol instructed MDL not to cash the check from Allstate because there were disputes regarding the cost of MDL’s restoration services. MDL deposited the check at Bank of America without obtaining the endorsements of either plaintiff or Capitol, which Bank of America accepted. MDL was not authorized to deposit the check without the endorsement of the other payees on the check. Likewise, defendant Bank of America was not authorized to accept the deposit of the check without the endorsement of the other payees on the check,” the suit says.

“Allstate, in its capacity as the insurer, sent a second check to MDL for $9,357.17 in accordance with plaintiff’s insurance claim, which was made payable to MDL, plaintiff and Capitol. During the restoration process, MDL placed some of plaintiff’s personal property, including furniture, into storage. MDL has instructed plaintiff that it will not release plaintiff’s furniture to plaintiff, until plaintiff endorses the second check from Allstate. As a result of MDL’s acts and/or omissions, plaintiff has suffered loss and damage in an amount not in excess of $50,000,” the suit adds.

For multiple counts of conversion, tortious interference with a contract, violation of the Home Improvement Consumer Protection Act and the Unfair Trade Practices Consumer Protection Law, the plaintiff is seeking damages not in excess of $50,000, plus interest, court costs, counsel fees and delay damages.

The plaintiff is represented by Mario Barnabei of the Law Offices of Jonathan Wheeler, in Philadelphia.

Philadelphia County Court of Common Pleas case 180104207

From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nickpennrecord@gmail.com

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