How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Dwayne B. Your Own Question
Dwayne B.
Dwayne B., Attorney
Category: Business Law
Satisfied Customers: 32535
Experience:  Practicing for over 20 years and helped a number of businesses with litigation.
11068102
Type Your Business Law Question Here...
Dwayne B. is online now
A new question is answered every 9 seconds

I have a LLC (LEN) and my partner has one (OTP). A year ago

Customer Question

I have a LLC (LEN) and my partner Sam has one (OTP). A year ago I have a written agreement with Sam that he owes me $23000 for IT services. He has been paying it monthly then stopped by claiming. He wants me to reimburse him for all travel (no agreement to do so ever), needs to see all invoices and checks written and deposited to LEN (I would give him his half). We have no written agreement except the $23000 he owes me and to be paid back at $2000 a month which he stopped doing. This could be endless going back 4 years of payments to / from his company looking for where he/I didn't get paid. But month to month we were square and I have no email stating he was owed anything. Now hes doing all he can to get out o f paying whats owed. What can/should I do to get the balance ($12070) paid to me and whats his defense to not pay?
Submitted: 3 months ago.
Category: Business Law
Expert:  Dwayne B. replied 3 months ago.

Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today.

Customer: replied 3 months ago.

Whats your reply?

Expert:  Dwayne B. replied 3 months ago.

In PA the small claims court has a jurisdiction limit of $12,000 which means that is the most you can sue for. Since the amount that is still owed is just a few dollars more than that you can sue in small claims court and ask for $12k and either represent yourself or hire an attorney or you can hire an attorney and sue in one of the higher courts.

Also, the statute of limitations is 4 years for a breach of contract.

If you decide you want to use an attorney, and you can sue for their attorney's fees as well, then the lawyer will want to send a demand letter first. This letter has two purposes, the first to put him on notice that you will be seeking attorney's fees if you have to sue and the second is to word it in such a way that it can be used as evidence at trial.

These are really the only ways to make him pay you.

As to defenses, there's nothing in your facts that raise any particular defense other than the one that is always available "I don't owe the money".

If your question has been answered then I'd offer my best wishes to you and ask that you please not forget to leave a Positive Rating so I receive credit for my work. Of course, please feel free to ask any follow up questions in this thread. I want to be sure that all of your questions are answered.

Customer: replied 3 months ago.

What prevents him from just forcing discovery and painstakenly go through all invoices/payments/ bills, etc just to find someway that Ill just be so frustrated to give up whats owed? He will claim that the money he owes me in writing is for IT services from a client that unless he sees all invoices and cleared checks he won't pay it. Hes looking a needle in a haystack in hopes Ill be forced to get a lawyer (as will he) to run up the costs where I will just settle for lesser amount. He has no evidence or proof that I owe him (no email or text request). we squared up on a month to month basis.

Expert:  Dwayne B. replied 3 months ago.

Nothing prevents him from asking in discovery for all of the documents you mention. It is possible that you or your attorney could object based on the fact that he has been paying the note all this time and if you have a signed agreement as to how much he owes then you or your lawyer can object that the documents aren't "calculated to lead to the discovery of relevant facts" since the only document that really matters is the one that he signed agreeing to pay that sum.

As to running up the bills, if he loses the will be ordered to pay your attorney's fees as well as what he owes.

Customer: replied 3 months ago.

Does my partner have any inherent entitlement to travel expenses? We have no writing partnership agreement, just an understanding to split revenue 50/50. But now he holds on to my portion saying I owe for all his travel expenses. Yes he did travel via car to clients but never with an agreement of reimbursement.

Expert:  Dwayne B. replied 3 months ago.

No, neither an employee nor a partner, nor a co-owner is automatically owed travel expenses. There has to be a specific agreement for them, preferably written.

I don't see where your partner has much of a basis for his claims at all.

If your question has been answered then I'd offer my best wishes to you and ask that you please not forget to leave a Positive Rating so I receive credit for my work. Of course, please feel free to ask any follow up questions in this thread. I want to be sure that all of your questions are answered.

Related Business Law Questions