Legal Questions

Do I have to pay contractor for faulty unfinished work?

The contractor we hired caused a major water leak which in turn caused the loss of a full price offer on our home sale. Due to this we had to spend a 2 months repairing our house in order to put it back on the market. By this time the market softened and we have been unable to sell at all. The contractor is denying any wrongdoing and wants us to pay full price plus the interest on the work done. He is charging us over $4000 interest on a $15,000 invoice. Every bit of work he has done has been done in a subpar fashion. We have pictures showing this. Since the home didn't sell we don't have the money to pay him. The original agreement was that the work would be paid out of closing. He keeps adding interest each month to the tune of $1000 roughly per month. Now we are selling our house to an investor but are taking over $100k loss.