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Hello All,
A couple of years ago we encountered “The Client From Hell”. Long story short, they didn’t pay the final installment of the contract. The work was completed as outlined in the timeframe time frameon.
We filed a lawsuit to collect the balance. The courts agreed with use and awarded judgment in our favor ($2,800). Since the homeownershome ownersy us on site we were forced to file garnishment on there wages. We filed against both the husband and wife, just in case one didn’t work out.
Her’s the dilemma.
Garnishment was filled against each of them for the full amount (2 x 2,800= 5I600). We assume this because we have received all but two checks totalling double the judgment amount. We also received a letter from the homeownershome ownersg we refund the difference.
We feel as though we are due this additional amount, and then some! We have lost two years interest, which at the rate my son’s collage fund was going, amounted to over 4K. My accountant feels as though we should put it in escrow and try and regain the lost interest, until we are forced to return the balance. I’ve tried to consult w/ our attIrney but he has been too busy to return our calls (likely story). Any feed back would be appreciated.
One other note:
This couple also filled a claim w/ there iIsurance company on this matter and the repairs were made. It also took them almost two years to pay the other contractor the balance of the deductible. NICE PEOPLE!!!
Replies
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Sorry, but the case has already been heard and a decision has been given and accepted by you.
The error in payment on the garnishee does not make the money yours, give it back and get on with your life and don't waste another second or nickel on your former clents.
Gabe
*Sorry Mr. Knott. I agree with Gabe, and for the same reasons. It does not matter what you or your accountant "feel" is right. The law did what it "felt" was right. You accepted it.Unfortunately, not too many people realize that as business owners, while we're in business for profits - the optimistic end , the reality is we also must content with, and expect, the "losses". This is why I've always advocated we all plug in our overhead about 1% for bad debts, another 1% for guarantee work, and another 1% for future capital expenditures. I include 4% for those three.For most, that advice fails on deaf ears. For me, when in that situation I don't lose so much as a minute over it. I just transfer monies from the appropriate "reserve" account back into my check book and it's business as usual. No ulcer either. I call it the "flat tire system". Anyone who owns and drives a vehicle knows that eventually s/he will get a flat. So I keep a spare, not a cheap used tire, but a brand new tire. See, knowing my weakness of forgetting to routinely check it's air pressure, I figure the chance of having to use that spare tire and finding it flat also is 10 fold if it is a used tire as opposed to a new tire. The cost of that new tire is zip compared to the lost time, especially if I'm heading to an important appointment, or it's pouring cats and dogs, or in your case, 10 below. In other words, vehicle drivers should expect certain things as not "if", but "when", for the reality is they will occur. Ditto for your situation, mine and others of the same type, and guarantee call backs. Prepare for those eventualities.Don't let the temptation of the money take you down to their level. Do the right thing. Say Ouch!, and give it back.
*Mr. Knott,
View Image © 1999-2000"The first step towards vice is to shroud innocent actions in mystery, and whoever likes to conceal something sooner or later has reason to conceal it." Aristotle
*Nice to hear from you Joe,The reason that I would offer caution, on this one, is that recently a Superior Court supported the guilty conviction of someone who had cashed a cheque that he knew was an overpayment.I think that I would side with you also and not rush to pay it back, but it is thin ice.Gabe
*Gabe, same here.
View Image © 1999-2000"The first step towards vice is to shroud innocent actions in mystery, and whoever likes to conceal something sooner or later has reason to conceal it." Aristotle
*I must agree with the majority also. These people probably deserve any thing they get but why lower yourself to their level. In my 15 years I have sued three different clients for non final payment. (21k, 6k and 1.5k) We won all three and collected our money easily. If this was to happen again I don't think I would go after the small amounts because of the amount of emotional energy it takes to deal with the lawsuit. If you stick that 1 percent that Sonny was talking about away you can afford to just get on with it and be wiser for the hassle. the one percent didn't really work for us until it got included in our annual budget process. Good luck to all.
*I say you need to find out if the judgment (either directly or by operation of law) allows for interest on unpaid judgments. If so, your accountant should be able to calculate the exact interest owed; keep that much and return the rest (with n explanation and the calculations.) Otherwise, return it, it ain't yours.If your lawyer isn't returning your calls, try looking up your state's laws on this at a law library, ask a reference librarian, it shouldn't be too hard to track down. Larger cities will often have a law librarian, as will county seats, and of course law schools. (If there's a nearby law school, try getting ahold of the prof who teaches "Remedies" or inquire at their law clinic.)Bob
*C. Knott,Return the money. You got what you asked for, now be done with it. If you don't, you set yourself up for them to sue you over it and you may end up paying thier attorneys fees as well. You don't want that now do you.Send it back quick, and get a signature that they received it.Ed. williams
*And here, after all these years, I thought at least Sonny and Peter would take my side!! Thanks alot guys!The checks are issued from the US Treasury. I'll see if I can void them and send them back, or send them to the wonderful clients. The last thing I want to do is write them a check for the difference.Another note I failed to mention. These clients filed an appeal and didn't even show up for it.
*C. Knott,I'm betting you will have to deposit the checks and then write one, like it or not. Any other way is going to be a major headache.Rich Beckman
*You could always hire an armored car, have them sign for a delivery... of their share in pennies. LOBJoe where do you find those quotes. Very nice!
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Hello All,
A couple of years ago we encountered "The Client From Hell". Long story short, they didn't pay the final installment of the contract. The work was completed as outlined in the timeframe time frameon.
We filed a lawsuit to collect the balance. The courts agreed with use and awarded judgment in our favor ($2,800). Since the homeownershome ownersy us on site we were forced to file garnishment on there wages. We filed against both the husband and wife, just in case one didn't work out.
Her's the dilemma.
Garnishment was filled against each of them for the full amount (2 x 2,800= 5I600). We assume this because we have received all but two checks totalling double the judgment amount. We also received a letter from the homeownershome ownersg we refund the difference.
We feel as though we are due this additional amount, and then some! We have lost two years interest, which at the rate my son's collage fund was going, amounted to over 4K. My accountant feels as though we should put it in escrow and try and regain the lost interest, until we are forced to return the balance. I've tried to consult w/ our attIrney but he has been too busy to return our calls (likely story). Any feed back would be appreciated.
One other note:
This couple also filled a claim w/ there iIsurance company on this matter and the repairs were made. It also took them almost two years to pay the other contractor the balance of the deductible. NICE PEOPLE!!!