Breach of Contract

J

John Doherty

New member
Finished a big job yesterday, contract says payment upon completion, got check, deposited it yesterday. They call me today and tell me they wrote it on wrong account AND want to re-issue me a check for only 50% of the total so some regional guy can look at it Tuesday, then give me the rest.

I tell them no you are in breach of contract, get me check for full amount on correct account by Monday 9:00am. They have to see if they can do that, then they call back and say they'll give me 75% on Monday and the rest after the regional guy sees it, now on Wednesday. They start in with the, remember we have other properties we need work on bs, like I got in business yesterday.

I tell them they are in breach, which they clearly are, spoke to my attorney about it. The final offer is 75% Monday and the rest after Wed inspection or I can wait to sue them for the full amount.

This is about in the mid 5 figures, not chump change.
 
Since the check is already deposited, what is wrong with them moving money around their own accounts and with their own money?

What would be wrong with saying that the check is already deposited and you deposited it since they gave it to you the other day?

Are there legal issues with this, since you deposited it after they gave it to you since the job is done?
 
Sorry you cut a check from the wrong account and that seems to be a problem for you. Contract was clear on terms, so this falls under the category of "Not My Problem".

If an obvious mistake by your Company means that our business relationship is in jeopardy then so be it.

Have A Great Day!


Sent from my iPhone using Tapatalk
 
What the regional gotta look at? Your work??? Sounds like someone didn't follow company SOP and is in trouble. Check deposited. Job complete. Call me if there is problem w my work as it is guaranteed 100%.


Doug Rucker Clean and Green Solutions 281.883.8470
 
They put a stop payment on the check.

Doug I think you are correct, contract says due upon completion and then adds a remedy if not paid within 10 days, I think the regional guy is pissed they didn't wait the 10 days. 'Legally' they can't "unpay" me, once payment is made the 10 days are moot and we don't start counting again, contract fulfilled, services rendered and paid for. The thing is I'll win in court no problem, but won't get paid until then.
 
I guess the question is do you need the cash flow now or can you wait? And is it worth it to wait for all of it instead of 75% now and the rest later?
 
If they issued a check to you DO NOT GIVE IT BACK TO THEM!!!!!!!!!!!!! A check in The State of New Jersye is a promissory note. Return that check once you have been paid in full only and the funds clear. Under New Jersey Criminal Code Section 2C:21-5 issuing a bad check in the amount between $1,000 and $75,000 is a crime of the third degree. If you were to push them on it, the issuer of that check could be arrested, prosecuted criminally and then you could seek the civil action against them to get your money. If you need advice John, give me a call.
 
Hey big guy can't throw a corporation in Jail. I respect your answer as Law enforcement, but I know this. I have tried to prosecute bad check writers , when they are a corporation its impossible in AZ. Fraud is another thing, but if they claim they made a mistake an canceled payment no judge is going to do anything. He will advice Civil suit.

No trying to be a Jerk , just letting you know of past experience. Now if they can't prove the money was there in the account an canceled for that reasons they might be in trouble, Even then its how they answer the questions. If they keep work disputed you just have an argument.
 
Ron, there is a 48 hour notification period in the agreement and they walked the property and signed off on Wednesday, a 1/2 day of the project was completed on Thurs.

Your advice is good but I've been around the block once or twice, and those bases are covered. I'm venting here more then anything else. This bridge is burned and after my conversations with them today I would never work for these guys again.
 
Ron Musgraves said:
Hey big guy can't throw a corporation in Jail. I respect your answer as Law enforcement, but I know this. I have tried to prosecute bad check writers , when they are a corporation its impossible in AZ. Fraud is another thing, but if they claim they made a mistake an canceled payment no judge is going to do anything. He will advice Civil suit.

No trying to be a Jerk , just letting you know of past experience. Now if they can't prove the money was there in the account an canceled for that reasons they might be in trouble, Even then its how they answer the questions. If they keep work disputed you just have an argument.
Click to expand...

Ron, I agree that you cannot put a corporation in jail, however in New Jersey, the system allows different avenues to pursue due to the amount of fraud that goes on in this state. There is theft by deception, theft of services, but the key with the initial check that was issued is that it is apromissory note saying in essence that this company owes John / Johns Company "X" dollars. failing to pay once that is issued requires them to cancel check (illegal) allow john to go to the bank with it and have it returned for insufficient funds (also illegal). It is that check that puts the ball in johns court so to speak. No single person from that company wants to get charged with a crime which allows John to use the system to his advantage. In the end it will likley be a civil matter, but it would not be a cheap and fun ride for the person that issued or presented the check.
 
I would stick to what Mike P is saying. DO NOT RETURN THAT CHECK..PERIOD. Let them worry about it.. Its not your problem they issued the wrong check.. You also have to watch out what there real intentions are such as did they missed a critical payment to something and now they want that check back to cover that base with your money?? Could they be on the brink of bankruptcy and if you return that check and they now file protections from there creditors will you even see a dime?
Keep the check and follow your lawyers advice. Reason why they make the big bucks.
 
I dunno John, is 3 days or even two weeks of waiting on your money not worth the colateral damage you may be causing.

I'm with Ron on this one.

If it was a HO and a lil $200 job thats one thing. But for 5 figures I'm playing the nice guy and doing anything I can to help.
This is a prime reason to have a business line of credit. And if you aren't needing it for cash flow and it's just the principal of the matter.....
Being blunt here .... just eat it - save the relationship, pick up a few other 5 figure properties of thiers, and then go back to the guy/gal that wrote you the check and say hey, you owe me a testimonial and some referrals from all the shit I just went through to save your ass!
 
DJ Carroll said:
I dunno John, is 3 days or even two weeks of waiting on your money not worth the colateral damage you may be causing.

I'm with Ron on this one.

If it was a HO and a lil $200 job thats one thing. But for 5 figures I'm playing the nice guy and doing anything I can to help.
This is a prime reason to have a business line of credit. And if you aren't needing it for cash flow and it's just the principal of the matter.....
Being blunt here .... just eat it - save the relationship, pick up a few other 5 figure properties of thiers, and then go back to the guy/gal that wrote you the check and say hey, you owe me a testimonial and some referrals from all the shit I just went through to save your ass!
Click to expand...
I thought about that DJ but if you look at the rest of John Doherty's story he says the bridge is burned.. So there is problems there. High five figures such as for example $80,000-$90,000 is a large amount of money for most jobs. I dealt with contracts where companies have bounce checks totaling $28,000. That darn near ruined my business a couple of yrs ago because it happened right when we pretty much shut down for the winter months..

We finally got out money 6 months later which was 5 months past due and have done work for that company again but I really had to bite down hard to not burn my bridge.. If the bridge is burned and I have there money already.. I'm not Mother Theresa.... Try and get it back..
 
DJ Carroll said:
I dunno John, is 3 days or even two weeks of waiting on your money not worth the colateral damage you may be causing.

I'm with Ron on this one.

If it was a HO and a lil $200 job thats one thing. But for 5 figures I'm playing the nice guy and doing anything I can to help.
This is a prime reason to have a business line of credit. And if you aren't needing it for cash flow and it's just the principal of the matter.....
Being blunt here .... just eat it - save the relationship, pick up a few other 5 figure properties of thiers, and then go back to the guy/gal that wrote you the check and say hey, you owe me a testimonial and some referrals from all the shit I just went through to save your ass!
Click to expand...
DJ there is more to this story not worth going into here, but believe me, you would throw gasoline on this burning bridge.
 
Giving a bad check is considered an "intent to pay" in NJ and gets rid of any "theft by deception" charge. Cancelling a check may be another story but now you are in to a "time" issue when trying to prove what is owed to you. This is usually when allegations arise that something was not done correctly or as specified in a proposal. Rarely do these work out well, best of luck.
 
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