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INFOLAWYER
INFOLAWYER, Attorney
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I have owned/operated a commercial cleaning company since Dec

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I have owned/operated a commercial cleaning company since Dec 2000. I have been doing business with one particular client since May 2003. Our most recent contract began April 2008 and expired April 2010. They elected not to continue doing business with me effective April 2010. Contracts were generic, stating labor to be performed, location of building(s) to be cleaned, how often and cost to have them cleaned. There was a note that stated any changes to the current contract language (which included EVERYTHING on the contract) had to be in writing with 60 days advance notice. Problem: shortly after the inception of the contract, the business was sold. In November, 2008, one of the two bldgs I cleaned closed. I received no written notification to change the contractual monthly amount billed for cleaning, and continued to bill the full rate. Now they are sueing me for the amount they were overbilled and paid. Do I owe them this money? What are the legal ramifications of overbilling?
Submitted: 4 years ago.
Category: Business Law
Expert:  INFOLAWYER replied 4 years ago.
Hello and thank you for your question.What specifically do you want to know?
Customer: replied 4 years ago.
Sorry for the confusion. I want to know a couple of things. First, the language in the contract stated that I was to receive 60 days written notice of any changes to be made to the contract. Since I did not receive a notice from my client to alter the billed rate, I continued to bill the contractual rate for services. (Keep in my mind, I cleaned 2 bldgs for them. One closed. The other remained open.) Do I need to repay this overpayment to them? Second, I want to know if this is strictly a contractual dispute or if their threats of legal action are substantial, and I can be charged, in a court of law, of wrongdoing. I presented an amicable agreement that had both sides accepting ownership for their part in the dispute. They countered with a ridiculous settlement, requiring full repayment with interest, and the right to prosecute if defaulted. What are my options? Thank you.
Expert:  INFOLAWYER replied 4 years ago.
Your position is correct. Absent 60 day notice you can charge as you did and should not have to charge at lower amounts.
Customer: replied 4 years ago.

My client's atty is stating (of course) that 60 days notice or not, I did not have the right to continue to bill for services not being performed. Therefore, wrongdoing. Can I be prosecuted? My philosophy on the whole thing was, no written notice of change (allowing me the opportunity to find replacement income), I would continue to bill the contractual amount until the contract expired. Invoices were submitted and consequently paid, by their accounting dept. After 2009 year end audit, I was informed that I was overbilling them. I had been billing the contracted rate for 11 months before their audit. So, it isn't a small number they are asking for. Is the law on contractual dispute cut and dry? Or is it a matter of opinion?

Expert:  INFOLAWYER replied 4 years ago.
You can recover per terms of the contract. I see mothig illegal or criminal
INFOLAWYER, Attorney
Category: Business Law
Satisfied Customers: 50135
Experience: LICENSED BUSINESS LAWYER
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