Our Experience in Detail Page 21

September 28, 2011

Demand letter sent to Peter Johannesen, aka Johannesen Construction.

Contents of demand letter

As you know, I represent Brian and Erika Silvers. Mr. and Mrs. Silvers have informed you that they have terminated the July 1, 2011, Kitchen Remodel contract with Johannesen Construction because of its failure to perform the contract, including (1) the absence of you or your workers from the jobsite since August 24,2011, and; (2) your failure to communicate with the Silvers from August 26,2011, to September 23, 2011.

After being notified the contract was terminated, you finally communicated with them claiming that you were ready to perform, but you did not provide a valid reason for the work stoppage, your absence, or failure to communicate. Your statement to me that the lack of a completion date in the contract excuses any failure to perform, absence, or failure to communicate is specious. Likewise, your assertion that Johannesen Construction is entitled to withhold 35% ofthe contract price under the footnote on page J also fails because the language does not include breaches by Johannesen Construction.

Johannesen Construction's representations about its work and the contract were false, misleading, and deceptive under the Texas Deceptive Trade Practices-Consumer Protection Act and violated §§ 17.46(a); 17.46(b)(5), (7), (9), (12), and (24); and 17.50(a) of the act in that it:

1. Represented that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not have;
2. Representing that goods 01' services are of a particular standard, quality, grade, or that goods are of a patiicular style or model, if they are of another;
3. Advising goods or services with intent not to sell them as advertised;
4. Representing that an agreement confers 01' involves rights, remedies, 01' obligations that it does not have, 01' which are prohibited by law; and
5. Failing to disclose information concerning goods 01' services that Johannesen Construction knew at the time of the transaction and it intended such failure to induce the Silvers to enter into a transaction that they would not have entered had the information been disclosed.

Additionally, Johannesen Construction's actions were knowing and intentional. Please issue a refund of the $10,400.00 within sixty (60) days. If Johannesen Construction does not take the requested action within sixty (60) days from the date of this letter, the Silvers will sue for economic damages, statutory damages of three times the amount of economic damages, statutOlY penalties, prejudgment interest, attorneys' fees, costs. Likewise, to the extent it may apply in this situation, this letter is also notice of construction defects under Tex. Prop. Code Ann. § 27.004(a). Refunding the $10,400.00 to the Silvers can remedy the defects. If Johannesen Construction has not remedied the defects 01' if Johannesen Construction does not comply with the provisions of Tex. Prop. Code Ann. § 27.004(b), the Silvers have instructed me to file suit sixty (60) days from today's date for breach of contract and breach of warranty. If the Silvers file suit, they will seek all damages permitted by law, including, the cost of completing the renovation, any expense for temporary housing during the repair period, any reduction in the market value, and attorneys' fees.

Please note that by this letter, the Silvers do not waive, and specifically reserve, all other rights they may have against Johannesen Construction and you under Texas law. Please call me if you have any questions.

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