Legal Analysis:
Recently, given the few admissions Connect has made regarding its financial difficulties,
it does not seem unlikely that Connect may be considering filing for Bankruptcy. In the past,
when companies file for Bankruptcy, they tend to believe that the same will insulate them
completely from liability, but that is not the case in situations where fraud is evident. Here,
Connect admitted to some financial difficulties, but then would always come back and say that
these “slowdowns” or “difficulties” would not affect the Project, and in one case- that I would
not even affect the timing of the Project. However, it now appears that all along, Connect was
well aware that it would never deliver all of the materials to Wiggs, nor would it complete the
Project ever- let alone in accordance with the projected timeline.
At the very least, Connect is liable for Breach of Contract, given that that the bulk of its
costs and fees as set forth in the Agreement were to be paid in consideration for the “Pro 6 Base
Model” and associated installation costs, and neither has happened, despite all of the assurances
that you provided. Moreover, in California, every contract includes an implied covenant of good
faith and fair dealing. The covenant of good faith and fair dealing, implied by law in every
contract, exists….. to prevent one contracting party from unfairly frustrating the other party’s
right to receive the benefits of the agreement actually made.” (Guz v. Bechtel Nat., Inc. (2000) 24
Cal. 4th 317, 349.) A claim for breach of the implied covenant of good faith and fair dealing
requires the existence of a contract, whether express or implied. (See Racine & Laramie, Ltd. v.
Department of Parks & Recreation (1992) 11 Cal.App.4th 1026, 1031-1032. [“The implied
covenant of good faith and fair dealing rests upon the existence of some specific contractual
obligation. [1] … Alameda Health Sys. v. Alameda Cnty. Employees’ Ret. Assn., 100 Cal. App.
Sth 1159, 1190, 319 Cal. Rptr. 3d 710, 737-38 (2024)
However, it is likely that Connect is also liable for Intentional Misrepresentation,
Negligent Misrepresentation, Fraud, Intentional Infliction of Emotional Distress and Negligent
Infliction of Emotional Distress given its decision to surreptitiously avoid providing its
customers with information regarding its inability to complete services, while continuing to
extract money from them, knowing that they would never receive anything in return. This point
is underscored by the fact that Connect continues to advertise its services as if they are
unaffected at https://www.connect-homes.com/, possible hoping to attract other unassuming land
owners into entering into a contract and paying out hundreds of thousands of dollars in funds in
exchange for nothing.
IV. Conclusion:
Based on the foregoing, Wiggs and his family are demanding $350,000.00 from Connect
in damages, calculated as follows: $300,000.00 calculated as the building cost difference Wiggs
and his family will incur given Connect’s failure to perform under the terms of the Agremeent,
and $50,000.00 in additional new build expenses. (This option shall be referenced as Option
“A”). In consideration for payment of this amount set forth in Option A, Wiggs and his family
will agree to provide a complete waiver of liability to Connect and its principals, including
yourself under California Civil Code section 1542. In addition, Wiggs and his family will agree
not to pursue punitive and/or exemplary damages for what appears to be intentional and
malicious misrepresentation to Wiggs and potentially others in order to extract additional funds
from them, even while Connect knew that it could not deliver on the terms of the Agreement. In
the alternative, which shall be referenced as “Option B”, Connect must deliver and install the Pro
6 Base Model with permits in place no later than March 15, 2025. In the event that Connect fails
to timely respond to this demand in writing by January 15, 2025, and accept the terms of either
option A or B in full, Wiggs and his family will deem this offer revoked, and both Options A and
B shall be null and void as of 5 pm on January 15, 2025.
All rights are reserved.
Very truly yours,
Law Offices of Heather Gibson, P.C.