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Recourse for nonpayment

Discussion in 'BBS Hangout' started by RocketRaccoon, Feb 11, 2002.

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  1. RocketRaccoon

    RocketRaccoon Contributing Member

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    Hey Everybody...Anybody,

    In another thread about what's the worse thing about your work, school, etc., and I mentioned a client that has refused to make a payment.

    Legally, what can I do to get her to pay the 1500 dollars? Are the courts the only way to go, which would be my least enjoyable option.

    Some specs. No contract was signed...just an agreement to pay certain dollar amounts for projects. I first submitted the invoice back in early December. The project was to develope a corporate ID and a web page for one of her clients. The project is complete.

    My business is less than a year old and I'm kinda new at this.

    Any suggestion would be greatly appreciated.

    Thanks.

    RR
     
  2. RocketRaccoon

    RocketRaccoon Contributing Member

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    Oh, and I should add that this was the last invoice of a series of invoices. She has paid the previous ones.

    Thanks,

    RR
     
  3. DiSeAsEd MoNkEy

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    give me her address and ill make sure it never happens again.
     
  4. Puedlfor

    Puedlfor Member

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    Do you know if this client recieved the invoice, and refused to pay, or if its possible there was some kind of miscommunication along the way?
     
  5. RocketRaccoon

    RocketRaccoon Contributing Member

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    DiSeAsEd MoNkEy

    Trust me, I have thought of that one... Feel like making a trip to Corpus? :D

    Puedlfor

    Yes, I've sent her the invoice 3 times (email and snail mail), there were many phone calls, and 3 times she said she will overnight the check "tomorrow". Each time when confronted she has an excuse which usually involes her admin.



    Before DiSeAsEd MoNkEy takes to me serious, I like to add where my head is at on all this.

    I don't miss the money, though it would be nice to have. I enjoy what I do way too much to be doing it for "just" the money. I mean, I enjoy living a very simple life. My first thought was to just let it go but friends tell me I need to do something. So this forum is my first step.

    Thanks,
    RR
     
  6. Mr.Scary

    Mr.Scary Member

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    RR
    While I sense you are trying to be a "nice guy" about this, the fact is you are out the time and work. Even if you enjoy it. It is still work or they wouldnt pay you to do it. Working in a legal environment has hardened me a bit but I would give her a little more time (since she has always paid in the past). If nothing after that, I would get a lawyer or have DiSeAsEd MoNkEy pay her a evening visit :D
    I have been in situations like this before (building computers) in my side business where someone orders something then wants to shaft you. If you keep letting it go you will end up with nothing but headaches and empty pockets.
    Good Luck. I hope you get the money you deserve.
     
  7. Pole

    Pole Houston Rockets--Tilman Fertitta's latest mess.

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    Can you still get "into" the web page?
     
  8. SamCassell

    SamCassell Member

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    Racoon,

    First thing is to send your invoices, letters, phone calls, etc. Sounds like you've exhausted that option.

    My next step would be getting an attorney to send a letter for you. Just a simple demand letter, "reminding" them of the debt. People will usually take a letter from an attorney alot more seriously, because it is more formal and there's the (unstated) threat of going to court.

    I agree with Mr. Scary that you shouldn't let them walk over you, even if you don't need the money that badly.
     
  9. MadMax

    MadMax Member

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    i agree with sam...if this is a contract, you'll win your attorneys' fees in court in addition to the amount you're owed (assuming that you can actually collect from the person). But in order to get those attorneys' fees, you need to send out a demand letter through an attorney...
     
  10. Major

    Major Member

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    <B>The project was to develope a corporate ID and a web page for one of her clients. The project is complete</B>

    Two things to consider. First, what kind of client is this? I gather she is some type of intermediary for a 3rd company? If so, have you considered contacting the third company directly just to notify them that one of the companies they work with may be committing fraud? I did that once with a company who refused payment with us and it got a payment within weeks. They did not appreciate us hurting their reputation, but it was the truth, so we did nothing wrong.

    Second case, how big is this client? We worked with a company a couple of years ago who refused payment on about $100,000 in ad sales. We sued & got a default judgement, but they basically disappeared and shut down. I had already spent several thousand on the lawsuit, and it didn't appear there were any assets worth going after, so we never pursued it (it would have cost more money). They were a startup and probably ran their company with the intent to commit fraud. At least we got them to shut down, but it still sucked and pursuing it was a waste of money on my part.

    It's something to consider -- is this a long-established company? If not, it could be a waste of time. If it is, though, at least the threat of a lawsuit might work (this is what I had originally hoped for in our case) -- it only costs a few hundred dollars and might force the payment. I don't know how small claims court works, but it might be even cheaper to go this route. Regardless, Sam's idea is something you should definitely do. If you want, follow it up with serving a lawsuit (you don't have to follow up if you don't want to) and see if that helps.
     
  11. RocketRaccoon

    RocketRaccoon Contributing Member

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    Yes, the web site is accessable...her client's only presence is on line...

    No contract...just an agreement to pay for work done.

    My client is a national company that has even won national awards. But those awards were several years ago.

    My first suspicion came when I found out they were working out of her home...no longer occupying their downtown address.

    Thanks for all your responses.

    I guess that settles it...but damn, I'm not going to enjoy this. I'll find a lawyer.

    Any lawyers out there in CC.net land who wants to make a quick buck to write a letter?

    Again, thanks everybody.

    RR
     
  12. bobrek

    bobrek Politics belong in the D & D

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    My guess is that when Pole asked if you could get into the web site, he was inferring that you could change the site until your client paid up.

    Prior to getting an attorney, you ought to send one last reminder which says, "My next step is to get an attorney to persue this..." and mention that the $1500.00 will increase with the legal fees. Hopefully, this would spur her to pay and you won;t be out any attorney fees.

    Good Luck.
     
  13. LHutz

    LHutz Member

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    WHY you did not ask sooner?!?! YOU KNOW at this site you have axess to TWO OF THE WORLD'S LEGAL GREAT MINDS and you know who.

    Huh?

    RIGHT.

    MINE, and the little man in side my PANTS!!!!

    FIRST you should SUE SUE SUE her BUTT BUTT BUTT!!! Show her you mean BUISNESS by filingk a law-suit for:

    * Miscongregation of practices
    * Alappropriateion of fundages both legal and extra-cricular
    * Violation of the Mann Act
    * Improper lack of paper filing
    * Theivery
    * Interdecent exposure
    * Failure to dis close the rat of HABEUS CORPUS (whooooooo scary!!!)

    THESE is just the ones DUKE DUKE DUKE could thingk of, JUST WAIT TIL I ASK Pink Pete what he thinks!!!!!
     
  14. Pole

    Pole Houston Rockets--Tilman Fertitta's latest mess.

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    Pink Pete.....that's worth 1500 bucks right there.
     
  15. Pole

    Pole Houston Rockets--Tilman Fertitta's latest mess.

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    Disable the web-site and tell that goofy beyotch that you're about to start levying some pretty steep late charges.
     
  16. MadMax

    MadMax Member

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    raccoon -- chances are you have an oral agreement...even still, you can collect attorneys fees for services provided under Civil Practices and Remedies Code 38.001. i'd be happy to draft the letter for you!! :) email me if you wish...
     
  17. SamCassell

    SamCassell Member

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    I'd do it, Raccoon, but I'm working for the court, so I'm not technically supposed to represent clients while I'm here. Especially in Corpus (I've helped friends out from time to time in Houston). So I'm glad to see Max offer.

    As for screwing with the web site, which I've seen a few people mention... don't do it. You really don't want to give them cause to sue you for consequential damages.
     
  18. DiSeAsEd MoNkEy

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    how soon do you need me dude?
     
    #18 DiSeAsEd MoNkEy, Feb 11, 2002
    Last edited: Feb 11, 2002
  19. Grizzled

    Grizzled Member

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    You might also want to consider Small Claims Court, or whatever is your equivalent down there. You don't need the deal to be in writing for it to be a contract. You need to have: offer (to do work for a person), acceptance (of that offer), consideration ($$), capacity (i.e. not dunk, insane or a minor) and intent to form a contract (i.e. not a joking or accidental acceptance). It sounds to me that you have a contract and that you have a paper trail to prove that you do. You could take this to small claims court and get a judgement, I suspect. The trouble with involving lawyers, and I'm sure my lawyer friends here will agree ;), is that they are expensive. The $1500 will be quickly surpassed by legal fees if this lasts very long, and if she's broke or about to go bankrupt, you won't get anything from her and you'll still owe your lawyer. It only really makes sense to sue if the amount in question is at least several thousand dollars and you are confident that the other party has the money to pay. You could also talk to her about smaller payments spread out over a longer period of time or some other way to make good on what she owes you.
     
  20. RocketRaccoon

    RocketRaccoon Contributing Member

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    Holy sh*t, now I got Pink Pete & LHutz involved...I'm sure to get my money now...but I'm not sure what they wrote....:D

    D.Monkey, man, how I would love to give you her address...that would be worth the money. ;)

    Although I would never go back to the site to mess with it, dollar against a donut, she already had her bud in Houston (who owns the server) delete my password.

    Wow...Houston...there's a lot of you guys there...maybe...naw.

    Thanks Sam for your thoughts.

    Max, I'm going to give bobrek idea a shot first...sending a letter letting her know what my next step will be if I don't get a check. If nothing comes of it, I will be dropping you a line.

    Again, THANKS TO EVERYONE!!!!!!!!!

    RR
     

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