nonpayment from contractor

J

johnisimpson

New member
Looking for some information for a friend. He owns a high rise window washing company in Georgia and last year he did work in TN for another window wahshing company that had landed a large contract. The TN company is a small operation (probably just the owner, no employees) and he didn't have any experience doing high rise work so he subcontracted my friends company. Now, they did the job twice and unfortunately the TN company has not paid my friends company anything. Payment was received from the customer. Now, what options does my friend have in getting his payment? I believe the total is upwards of $6000.
What are the first steps that need to be taken?
What documentation does he need to start organizing and compiling?
What's the best threat to encourage payment?
At what point (generally) would $6,000 be better written off as a loss? Is seeking legal action a mute point over this amount?
I'd love to give some good information to this guy, I hate to see him stiffed.
Anybody located in Memphis? I'd love to get an email if you are, so that I could ask about the credibility or reputation of this company/individual.

John
 
take him

to small claims court and seek damages for "theft of services"
Most times just a letter from a lawyer will get them to pay.
I dont think you even need to hire a laywer for small claims court.
 
If you subsribe to a PRE-Paid Leagal service they will send letters like that as part of your membership. Might be somthing you want to look in to. cost is next to nothing per month.
 
one other aspect...

Also, what moves would any of you take to approach the customer and propose taking over the job without the local window washers being involved?
 
It is going to depend on the limit TN sets for small claims cases. Often the threat of legal action will be enough, especially when sent from an attorney.

Where were the services performed?

If it were me, I wouldn't approach anyone about taking over the contract until the payment issue is resolved, unless the TN company is no longer handling the contract.
 
forgive the ignorance...

Why would u wait to approach the customer about taking over the contract? I'm not disagreeing in any way, I just don't understand what the pros and cons of the situation are.
I've thought that the main thing would be to maintain a professional standard and appearance to the customer. Do you think that approaching them at this stage would jeopardize that? Are there issues of getting the payment if you take the contract? As far as I know, the original contractor is still handling the job.

by the way, thanks for all the response. It's great to get some information on this.

John
 
The work was performed in Memphis, TN.
The customer and the original contractor are both located in Memphis and my friends company is based out of Savannah, GA.
 
First, no one on this board is remotely qualified to give you valid legal advice. If they were, they sure the hell wouldn't be washing trucks for a living.

Second, hire an attorney that specializes in construction law.

Third, check two facts: 1) if TN requires the contractor to be licensed, and 2) what the contractor lien law states. In certain states, even if the prime has been paid, all subs and those with subordinate claims can file a mechanics lien on the property so improved (provided all the legal pre-work was done in a timely manner). In this case, a simple letter to the building owner indicating that even though they paid the contractor, you have not been paid and will file a lien if your invoice is not satisfied. Again, if you haven't filed the necessary papers regarding liens to begin with, you're screwed. Which brings me back to point #2 HIRE AN ATTORNEY!
 
Trevor,

good point and not overlooked, but the board is a great place to get beginning advice from others that might have been in this situation before.
And, hopefully, these threads may help others avoid getting in these situations in the future.
Which poses a good question. What is required between a primary contractor and a sub (before the job starts) to ensure that both parties are covered?
What terminology or what key components should be included in a contract? Anything needed beyond a solid contract?
 
I am not an attorney, though I may play one on television. First thing is to file a preliminary notice with the contractor and the building and anyone else with a financial interest in the property. This puts them on notice that you are, in fact, working on the property. That is as far as I can go as I do not know anything about TN law. In some locales, if a contractor is required to have a license for the trade he is performing, and it is not active or current (or not licensed at all) the client has no legal obligation to pay for work performed, and the courts will not rule against him.
Best advice, if one is going to be doing any reasonable amount of work as a sub, I would invest in a few hours with an attorney for solid contracts, briefing on procedural matters, and protocols. Otherwise, sue the bastard for the maximum in small claims and chalk the rest up to a really bad day.
 
Small Claims is pretty much useless. If you win, that does not mean the other party has to pay. No you do not need an attorney in small claims court.



I too am not a lawyer - But I disagree with the above - whether we wash trucks or decks for a living, doesn't mean that we do not have experience in this type of stuff. We are here on this board to help each other. I've been down this road several times. So do not take my advice or anybodys advice and bet your house on it, but use it as a starting point.

Get an attorney to send a letter & then take the contractor to circuit court - forget about small claims court. The first thing that attorney is going to ask: Is there a written contract - If so, was the service render - If so, lets go to court.

Also - report to the Better Business B.
 
While small claims may not be the appropriate forum for this particular case, it is certainly not useless. It is simply not the last step, but rather the first step in the collection process. There are easy and legal means to collect on that judgement once you obtain it in small claims court.

Check out www.nolo.com for a lot of great legal resources that you can buy. Attorneys have their place, certainly, but you don't need one for everything.
 
$6000 is not a small claim in my state. I think any amount up to $2000 is considered a small claim and anything above that is not eligible for small claims court.

Sorry to hear about your friends trouble.
 
$2500.00 is the limit in my state.




For $6000.00 - get an attorney.


Just my opinion base on my personal experience -

as of small claims - I have two cases that I won in small claims over 14 months ago & I still have not collected. If I would have taken them to circuit court - they would have been force to pay asap. My attorney told me that the small claims system is set up to give the average citizen (without the need of an attorney) a setting to defend themself of wrong, but - key word but - when it comes down to it, it carries little weight. The system is set up, so that you need to hire an attorney - who makes the rules - why would attorneys have a system that eliminated their need?
 
Tim Smith said:
why would attorneys have a system that eliminated their need?
Click to expand...

Yea, beacuse attorneys make such a killing on small claims cases! That's why most of them go to law school, to fight for you and your neighbor and $2500.00!
 
trevor

I showed your comment to an attorney (a friend of mine) & he laugh - he stated that he gets paid by the hour and he would represent a small claims case for a finding of $5.00 if the client was willing to pay his $185.00 hr fee.




I take it that you feel extremely strong about your opinion based on your use of "!".


You posted that "no one on this board is remotely qualified to give you valid legal advise. If they were, the sure as hell wouldn't be washing trucks".

Then in your next post, you give advice.


We benefit from this board because of the different experiences that each of us have had.
 
Timmy, Timmy, Timmy! Ye of little faith. My first post stressed the point NOT to ask this gathering of cretins legal questions on the assumption that none of us are lawyers and each state, county and city have their own peculiar requirements. What I would do in my city may have no bearing on what can be done in your city.

My second post, for those of you who are anal enough to be keeping track, simply indicated what SHOULD be done in the future, with no regard to the present situation. In most cases mechanic lien laws are pretty strict with adherance to timetables. If he has already made overtures to get paid and has dilly-dallied around, I am pretty sure he has passed the applicable timeline for filing. Therefore, I SUGGESTED what should be done in the future.

I hope I have clarified your misunderstanding of my post.

Love & XXX,

Trevor
 
trevor

The situation is very clear - Thanks - I look forward to your positive comments in the future - its apparent that you have a tremendous amount to offer to this board. Your time is appreciated.

Timmy Timmy Timmy - When I go back home, my friends and family still call me Timmy - Thanks, I now consider you a friend as well.

If I can assist you in anyway in the future, please do not hesitate to call or email me. Have a great day

I'm sure you will be a great contributor to this board.
 
Believe it or not, I did meet a lawyer on another BBS once. He was tired of it and wanted to do something really different.

I have seen folks form all walks of life take up this line of work, many with professional careers of some sort....there have been EMTs, policemen, MCSE's, and I recall a recruiter too. One thing to remember is that in life we often change paths, that is to say a career change is a wonderful way to explore other things in life, and to grow in many ways.

Hey, look at it this way, we all had first jobs right? But how many of us are still flipping burgers or whatever we did for that first job?

Change is a wonderful thing, but like rollercoasters, you have to learn how to enjoy the ride!

Beth:cool:
 
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