Legal Spring Logo

"Should I form an Incorporation or an LLC?"
Find out at LegalSpring.com
Reviewing Legal Services Online
 LEGAL SPRING
     


Google
 
contractor getting stiffed - options?



"Jim R."
8/3/2004 8:35:14 PM


My S Corp provided some kitchen remodeling work for a client. The price of
3200. was verbally agreed upon and the client paid 1000. up front. It has
been 5 weeks and he has not paid. (I do have an email - 10 days ago- from
him promising to send payment which he didn't)
So here's my plan - the next phone message I leave for him (always get voice
mail with him)- inform him that I have to assume at this point that he has
no intention of paying the balance and I'm going to proceed under that
assumption
Next, registered letter "Notification of Intent to File Mechanics' Lien" -
if certified funds are not received by such and such date....blah...blah. If
I don't get the money - I'll go ahead and file the lien. But the lien
doesn't have the teeth I'd really like. If I don't act to foreclose in a
year - it just disappears.
Here's the kicker I thought of in my own devious mind - since the client is
an affluent, high profile guy, I was considering informing him that we do
publish the names of the properties and owners that we hold liens against on
our website.
Legal? After all, It is a public record, but then again I don't want to give
him grounds for a countersuit.
Any thoughts would be appreciated. BTW, my dealings with said owner have
been amicable so far. But amicable ain't paying the bills.
 
 
Paul Cassel
8/5/2004 3:48:17 PM


Jim R. wrote:
[contractor who claims he's owed money on work done on house]
Here's the kicker I thought of in my own devious mind - since the client is
an affluent, high profile guy, I was considering informing him that we do
publish the names of the properties and owners that we hold liens against on
our website.
Legal? After all, It is a public record, but then again I don't want to give
him grounds for a countersuit.
Do you now publish such information on your Web site? If you do, then I
see no problem in publishing the fact of this lien if you do file it,
but I am a bit leery about the threat. It borders on extortion. A
definition of extortion is getting someone to pay you money by use of
threat. The existence of a debt does not absolve you.
Now you can say if you are regularly publishing those you have liens
against that you are merely informing him and you have some defense to
the extortion charge, but if you are starting with him, then I think you
are a bit close to the line. My advice is you are too close so don't do
it. Others here may disagree. You also will surely ruin your amicable
relationship.
Besides a lien, which I know may not be much good because you need to
pay off all those ahead of you to grab the house, you can go to small
claims court and get a judgement. Such an instrument will allow you to
grab other assets he has even to the point of garnishing his wages. So a
judgement may work better for you anyway.
As a general advice, stay far away from threats. The generally don't
work and can backfire big time.
-paul
ianal
 
 
Report this post for offensive content


site map |  disclaimer |  privacy
All Rights Reserved, Legal Spring, Inc. 2004