MKM DEVELOPMENT CO INC

In October of 2008, a judgment was entered against MKM Development Co. Inc. for breach of contract. In October of 2001 we contracted with MKM Development Co. Inc. / Thomas Kanelos to build a home. In July of 2002 we moved into our new home and one month after we moved in we had water entering our basement on 3 walls and both walls of the garage over the top of the foundation due to defective flashing installation. After Mr. Kanelos extended the warranties on 3 of the 4 walls in our basement, and we gave him almost two years to correct the defect, we hired an attorney and filed a lawsuit. In October of this year (2008) we went to court and WON the case and the builder was found to be breach of contract and we were awarded funds to fix the defect. The amount did not cover all the costs to fix the builder s error, but we were just thrilled that a monetary judgment was awarded to us. During the trial, Mr. Kanelos on the witness stand, under oath, and recorded in the courts acknowledged that he is was responsible for providing us a home free from water penetration; that the masonry that he used did not properly install the flashing; and he even provided the judge with his estimate to fix the damages. His estimate was disregarded by the judge since he did not have a specialist and his estimate was not reasonable. We hired a masonry specialist who provided the judge with a price range to fix the problem of which the judge used his estimate to determine the fair value to award us. After six years, and going through all of this, Mr. Kanelos now claims he does not have the money to pay us. It is unbelievable that there is no legal ramification to builders who do not meet the warranty agreement they made with consumers. We were more than fair with this builder giving him almost two years to come up with a solution. We now believe that he was going through the motions hoping that we would go away. The purchase of a home is most consumer s largest investment and there is no law to protect them when a general contractor does not perform per their agreement. Yes there is a judgment against him, but builders just change their companies name making tracking difficult and allowing them to move on, continue to build with no consequences for their mistakes. Even if we received the money awarded us by the courts we will have to take out a loan for the balance required to fix our home. We will not be able to finance the entire amount required to fix the defect. So if Mr. Kanelos doesn t have the funds, why doesn t he finance the funds to fix our home, since it was his error? In June of 2007, Mr. Kanelos was appointed to the Niles Plan Commission and Zoning Board of Appeals for the Village of Niles, IL and is still building homes. He currently has a spec home in Orchard Valley Subdivision in McHenry / Bull Valley, IL. Somehow he should have funds to pay us.