The 'Lawsuit Scam' Explained

What happens here

The presenter details a 'Lawsuit Scam' where a customer decided to sue him for double the amount owed ($40,000 instead of $20,000) for excavation and grading work he had completed to specifications. The customer then hired a general contractor for the building frame and another excavator for exterior grading. The customer subsequently sued these other contractors for double their owed amounts as well. The other contractors eventually dropped their invoices against the customer in exchange for him dropping his lawsuit against them. This customer was previously a contractor himself, indicating he understood the system.

Goal: Understand how a customer can use legal threats to avoid payment and gain free work from contractors.