Contractor Job In Texas Gone Wrong

I hired Palm Construction Inc. (an LLC that is still very much in business) here in TX to build a retaining wall. I paid a large portion up front, but the work is now confirmed to be structurally unsound. My attorney had an engineer/inspector document the defects, and we also discovered they never pulled the required permits.

Where things stand:

• I sent the required Residential Construction Liability Act (RCLA) notice.

• I hired an attorney, who began the process and got a structural inspection. We tried to settle, but that has gone nowhere.

• The contract has an arbitration clause, but my lawyer says the contractor didn’t provide the proper arbitration documents when we signed, so we might still be able to pursue litigation.

• our attorney isn’t super confident we’ll be able to collect even if we win, not because of the company, but prior experience. Palm is still actively operating and advertising, many recent Google reviews.

The wall will need to be completely demolished and rebuilt, so I’m now facing not only the loss of what I already paid but the full cost of rebuilding.

My questions:

1. Since Palm Construction Inc. is still an active LLC, how realistic is it to actually collect damages if I win in court?

2. Would litigation allow me to recover both the money already paid and the cost of demolition/rebuild?

3. Does the lack of permits significantly strengthen my case?

4. Is arbitration likely to be forced even though the documents weren’t properly included in the contract?

5. Aside from suing, should I also file complaints with my city/county or the state licensing board?

I’m in Texas and just trying to decide whether pursuing litigation is worth it or if I’m likely to end up spending more money chasing an uncollectible judgment.

Thanks for any guidance.

Location: Austin, TX