CONROE, Texas – A Conroe restaurant owner says he lost more than $200,000 after hiring a contractor to help build out a second restaurant location in Huffman, but the contractor says he was fired before the project could be completed.
The dispute has now resulted in a court judgment exceeding $300,000 and conflicting accounts about how much work was actually completed.
Isaac Rodriguez, owner of Marsalas Italian Grill in Conroe, says he hired James Duncan after Duncan performed HVAC work at another restaurant location.
“He told me that he is licensed to do plumbing, electrical, and HVAC,” Rodriguez said.
Rodriguez said Duncan, who operated under the name Total Services Company, was hired to help with the buildout of a new restaurant location in Huffman.
According to Rodriguez, he paid Duncan more than $200,000 through checks and wire transfers for HVAC, plumbing and other construction-related work.
However, Rodriguez said problems began to emerge when work stalled and contractors stopped showing up at the site.
“We found out that we needed to have a grease trap in the back of the building,” Rodriguez said. “James sent me an invoice for that grease trap. I compensated him in full for that grease trap. A day later, two days later, the plumbers never showed back for work.”
Court awards restaurant owner more than $300,000
Court records show Rodriguez later sued Duncan and Total Services Company in Montgomery County.
In March, a judge granted a default judgment in favor of Marsalas Catering LLC after Duncan failed to appear in court. The judgment awarded approximately $202,960 in damages, $100,000 in punitive damages, attorney’s fees and interest.
Rodriguez says he has not received any of that money.
“I worked for years just to get $200,000 and for somebody to just take it away,” said Rodriguez.
Contractor says he was nearly finished
KPRC 2 tracked down Duncan at his business in Spring and showed him a copy of the judgment.
Initially, Duncan said he believed the case had been dismissed.
After reviewing the court paperwork, Duncan said he had never seen the judgment before.
Duncan strongly disputed Rodriguez’s version of events.
“He did not pay us over $200,000. That is a total lie,” Duncan said.
Duncan said substantial work had already been completed, including framing, drywall, HVAC installation and plumbing work.
“We were probably getting ready to finish,” he said.
Duncan estimated the project was approximately 75% complete when he says Rodriguez terminated the relationship.
According to Duncan, disputes surrounding the installation of a grease trap and delays involving a crane needed for the project contributed to the breakdown.
“We did a ton of work,” said Duncan.
Duncan also told KPRC 2 he would be open to mediation.
Questions raised about licensing and business registration
During KPRC 2’s interview, Duncan acknowledged that Total Services Company is not registered with the Texas Secretary of State.
“No, because we’re not an LLC,” Duncan said, adding that he operates as a sole proprietorship.
Duncan’s business was registered with the Harris County Clerk’s office.
He also said subcontractors working under him handled specialized plumbing and electrical work.
“We have contractors that do all that,” said Rodriguez.
KPRC 2 searched Texas licensing databases and did not locate a plumbing license issued to Duncan through the Texas State Board of Plumbing Examiners. KPRC 2 also did not find an electrician license issued to Duncan through the Texas Department of Licensing and Regulation.
Contractor hired afterward says work was incomplete
Rodriguez also provided KPRC 2 with a letter from another HVAC contractor who was hired after Duncan left the project.
In the letter, the contractor wrote that HVAC ductwork was “installed incorrectly and unfinished.” The contractor also stated trunk lines were incomplete, insulation had not been installed, thermostats and grilles were missing, some rooftop units lacked required code components, and portions of the work did not match mechanical drawings. The contractor further stated the work was being performed without required permits.
Criminal history surfaces during dispute
Rodriguez said he later discovered Duncan had prior criminal cases involving theft by check.
According to records in one case in Montgomery County, Duncan was convicted and spent one year in state jail.
When asked about that history, Duncan acknowledged it but said it does not reflect who he is today.
“That’s all my past. I don’t have anything in my present,” Duncan said.
Rodriguez says if he had known about Duncan’s history before hiring him, he would have made a different decision.
“I had to blame myself because I didn’t do the research,” said Rodriguez.
How to verify a contractor before hiring them
Consumer advocates recommend researching contractors before signing contracts or making large payments.
1. Check business registrations
Not every legitimate business will appear in the Texas Secretary of State database.
Businesses structured as LLCs, corporations and limited partnerships generally register with the Texas Secretary of State.
However, sole proprietorships often do not.
A sole proprietor may instead file an assumed name certificate, sometimes called a “DBA” (“doing business as”), through the county clerk’s office where the business operates.
If a contractor says they are an LLC, you can verify that through the Texas Secretary of State’s business search database.
2. Verify plumbing licenses
The Texas State Board of Plumbing Examiners maintains a public license search tool that allows consumers to verify whether a plumber is licensed and in good standing.
Consumers can search by name or license number.
3. Verify electrician licenses
The Texas Department of Licensing and Regulation maintains a public license search database for electricians.
Consumers can search by name, company or license number to determine whether an electrician is licensed.
4. Ask for proof of insurance
Request certificates of liability insurance and workers’ compensation coverage when applicable.
5. Search court records
Check county court records for lawsuits, judgments and prior disputes involving contractors.
6. Ask for references
Speak directly with previous customers and, if possible, visit completed projects.