San Jose flood victims complain about price gouging by contractors

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ByDavid Louie KGO logo
Wednesday, March 29, 2017
San Jose flood victims complain about price gouging by contractors
Some San Jose flood victims are accusing local contractors of price gouging them for flood damage repair work.

SAN JOSE, Calif. (KGO) -- Some San Jose flood victims are accusing local contractors of price gouging them for flood damage repair work.

San Jose Mayor San Liccardo says he and other council members have been receiving complaints from homeowners throughout the flood zones.

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"Contractor gave her the estimate of $2,000 to perform the work, didn't perform it very well, left water there, and then gave her a bill for $8,000," said Liccardo.

It all allegedly happened on South 19th Street where many of the basements had 4-feet or more of water after last month's flood.

Many residents told ABC7 News that they are not home because their homes are still yellow-tagged.

One man who did not want to go on camera said he knows a neighbor who was quoted $7,000 to remove water from his basement but ended up getting it done for $700.

The council is asking the city attorney to go after unscrupulous contractors by suing them for unfair business practices.

But some residents are sceptical. "You can't be totally in the dark. You can't say, ok, I'm the little lamb who needs help. You have to take some responsibility for yourself," said Constantin Gundunas, a San Jose property owner.

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Gundunas is also a flood victim, who owns five apartment units on Nordale Avenue in the Rocksprings neighborhood.

He's still dealing with contractors. He also dealt with them 20 years ago during a previous flood and 10 years ago after a fire. He believes the bad apples won't last.

"Excess profits breed ruinous competition, so those contractors are not going to be in business very long if they continue that," said Gundunas.

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