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Mike,
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I'm a lawyer, but don't practice in New York. Here are my observations:
1. The guy is a Deadbeat. While a demand letter might work, my sense is that it would be a waste of postage. It could help at trial if you invite him to complaint as to the quality of your work.
2. Velocity. Speed and aggressivness is the key to collections. File suit in small claims ASAP, and have the marshall serve this clown.
3. No Complaints re Quality. I would send a letter that simply states the facts (you built the spa, he owes you the $$), and closes with language similar to this: Since the installation of the spa, I have not heard from you with respect to the quality of the workmanship, so I therefore assume that you have no complaints as to the quality of the spa.
4. Mechanics Lien. Consider seeing a New York lawyer regarding a filing of a Mechanic's Lien. There are extreme time deadlines, so act promptly.
Good Luck, Mike!
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Men can be pansies. It works the other way, also, when you've paid but the job's not done. Couldn't get the contractor to put a door in. Paid a deposit for the door, and it's been sitting in his shop for four months already. I call politely once a week. No door yet. I turn it over to my own "Vinnie," my wife. She calls every day before 7:00 AM, and the door's in within two weeks.
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Mike,
The lawyer is right. Small claims is your best bet. Add up all your bills, hope it reaches $5K and hit the guy quick. (No not that sort of hit!)
In reply to the question of workmanship, if you've called him 8 times and he's had no complaints ie "I ain't gonna pay you 'cause the works c..p!", this should cover the point. When you issue your paperwork to court make certain that you include this valuable point.
Don't send the wife...we should all fight our own battles and if nothing else if the guys a DH he might try something we'd all read about in the press.
GOOD LUCK!
Barry
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Mike,
I am going through the same thing right now. There was a long thread on my post entitled "non-paying customer".
I still have not received my money but have made some minor progress. I have an attorney who is a great guy. has given me a ton of advice, talked with the customer's attorney(that he got for free through legal aid somehow) and has reviewed the contracts and corespondzance so far for free. I owe him a huge favor I suppose.
I think this customer is trying for the stall and get a reduced final bill stategy. Unfortunately for him my strategy has become you now owe me interest and penalties plus extras that were gonna be free until now.
By law, here in Ohio, if a customer breeches a contract by non-payment, I can then havve the job assessed by an independant contractor and charge the customer for the full value of the job therefore tossing out all deals, special pricing and freebies. Also do remember that it is important to file you lien in a timely manner or you may not be able to at all. I've seen people agree to pay and wait and wait until the statute of time runs out then refuse. You may also want to pay an attorney to handle the paperwork. Because what you spend in time figuring it out is probably worth more than what the lawyer would charge.
Best of luck from my boat to yours,
Pete Draganic
*"I have an attorney who is a great guy"Can i frame that, Pete?Move quick seems to be the consensus; only thing I'd add is don't let this get personal & eat you up inside ... it's just another ... revenue-producing opportunity. Get a read on how sophisticated the guy is, maye a good scare (like being served) will be enough. Maybe he has other creditors, try to be scarier than they are.And good luck, Pete. I hope to hear a success story soon. But WHY does he have a Legal Aid lawyer? That suggests he's pretty marginal ... the lien may help you to recover the fixtures and such from the store if that's all that is left to go for.
*I think he is just a perpetually cheap bastard who is hoping he can string me along until i give in to a cut rate on final payment and weasel out of paying for an attorney. Maybe he's playing the "I cant speak english" role with this attorney from legal aid, who knows? I ain't gonna give in. He is a vietnamese immigrant who thinks he is some kind of ultra clever shrewd business man. The other families of vietnamese that I build nail shops for have told me to watch this guy for those reasons. these other customers of mine are fantastic..wish I had more like them.Pete Draganic.BTW...I just got computer back from repair and I will be posting the pictures of the nail shop I built that this guy isn't paying on yet.
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When I was doing this for hire, I found that the "Power of Positive Annoyance"(c) works. Be polite, but bug the hell out of the person until he coughs up. Call twice a day, and be super-nice...ask gently about the work, the bill, etc, something different each time.
This works great at larger companies ... the person you are bugging will almost join your side, and be asking his people what is going on with your pay, etc. It works.
mr. greenjeans
Service Foundation, Inc.
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Has anyone ever had experience in collecting a bill through the legal system? I built 4 whirlpool tub display units and the customer refuses to pay. I have made 8 attempts and have not received a single reply and in fact his gal hung up on me the last time with the comment,"I dont need to listen to your complaints". I am about to send a final letter of Demand. I live in New York.
*Send Vinnie!
*Mike - Maybe a letter from a lawyer will get them going. I've filed a couple of mechanic's liens in my time and found them to work pretty well. The first time I had a lawyer do it (about $100), then did them myself after that. I used the county law library to find the procedures. Lee
*Mike,
*Have your wife with the kids knock on there door and sweetly hold out her hand for the check....You'd be amazed at how well this can work.In any event they are not responding to you, so you do need use something like, my wife trick, a legal summons, some chatter with his source of income, etc...Near the stream,JAnd there's always a chance you deserve not to be paid...
*Check with your lawyer. Demand letter may or may not be needed. Move quickly. The lawyer is a very very good idea, especially the first time through -- i assume you have significant money at stake. And New York law is complicated.
*Mike, time is of the essence. Eight attempts to collect!? They think you are playing softball. And they are right!You need to get on the stick, ol boy. Find out your state's regs. on mechanic liens and lien the deadbeat. Send your Letter of Demand by registered mail, the kind where you get a receipt. Get a lawyer to agree to a contingency basis. Hint: if you are in business, it is good to have a working relationship with a lawyer.Find out if this deadbeat is a corp., sole prop., etc. Go after his assets. Hopefully, this will scare him into making payment. If not, go for the jugular. I wish like heck I didn't need to say this stuff, but people like this force me to react. After all, you have already worked once for the money rightfully due you, right?To prepare for the big showdown, you should start tacking on costs in addition to the original sum. Interest on principal, attorney costs, letter writing, gas, postage, etc.; this all is costing you, right? Don't settle for a piece, you want the whole thing.BTW: you can be a nice guy in your business, but when the going gets tough you MUST act quickly and decisively.
*Send in the wife.....but that only works if the guy has a frail ego. The other creative and cheap one was I had a buddy of mine call him up and do cop speak...This is officer...Asking wether he had agreed to pay him...and in conclusion if he isn't paid or recieve cheques within 24 hours he will be charged with fraud. Both worked for me...Strange but true.
*I've seen that work even without a cop buddy. Just go file a complaint of fraud with the police department. They may deliver it, or may deliver it for a fee. Being served with a complaint by one of the boys (or girls) in blue on your doorstep, cruiser parked on the street, in front of the neighbors, can cause action. Got our $2,200 bill paid 2 days later, "Oh, it was a misunderstanding. I stopped the check because I was short of funds, yadda, yadda . ." Resubmitted the check and it went through.
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The Silicon Valley has a very large Vietnamese community also and, strangely, a lot of them seem to be setting up nail and manicure shops in the area too. What's up with this, I admire anyone who has the nads to set up his/her own business but what's with nail shops and Vietnamese?
When the lien goes through, can't you imagine the the things that will be going through this guys mind as a sheriff's deputy stands by the till and hands the store's receipts over to you, as the customers exit the shop. Go for the max and recover your added costs if at all possible.