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Ely
Ely, Counselor at Law
Category: Legal
Satisfied Customers: 101059
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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I own a insurance restoration company. It is becoming a regular

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I own a insurance restoration company. It is becoming a regular thing for the insurance company to release payment, and then the mortgage company hold our money in escrow for 30 days or longer after work is completed. Could this be considered tortious interference, if my contract with the client guarantees me all insurance funds within three days of disbursement from insurance? I cannot continue to sustain my company if I am consistently $20,000 or more upside down on a job while mortgage companies steal from me. Please advise.
Hello friend. My name is XXXXX XXXXX welcome to JustAnswer. Please note: (1) this is general information only, not legal advice, and, (2) there may be a slight delay between your follow ups and my replies.

I am sorry for your situation. Unfortunately, many mortgage companies have an annoying habit of doing this with all types of payments. Not because they have to, but because out of their own administrative rules/procedures.

Could this be considered tortious interference, if my contract with the client guarantees me all insurance funds within three days of disbursement from insurance?

It is not tortuous interference, but it is something else. Allow me to explain. To sue in a state court, one needs to have a "cause of action." There are numerous causes of action, such as "breach of contract," "negligence," "fraud," "unjust enrichment," etc., as well as causes of action rooted in statutory law. Every state has their own although they are very similar to each other in every state.

In order to prevail on a claim alleging tortious interference with contract, a plaintiff must establish the existence of a valid contract and that the defendant acted intentionally, without privilege or legal justification, to induce another not to enter into or continue a business relationship with the plaintiff, thereby causing the plaintiff financial injury. Atlanta Market Center Management Co. v. McLane, 503 SE 2d 278 - Ga: Supreme Court 1998. This is meant if the mortgage company actively and FOR THE PURPOSE OF DISRUPTION does something.

Not quite it here, however, they may be liable for money had and received. Under the common law doctrine of money had and received, recovery is authorized against one who holds unspecified sums of money of another which he ought in equity and good conscience to refund. OCGA § 23-2-23(b).

So if they are holding on to money WHICH IS YOURS, then this is arguably money had and received and if this causes you damage, you may sue for the damage caused.

Let me know if you need a sample letter threatening to sue unless they release the money.

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Customer: replied 3 years ago.

Yes. a sample letter would be very beneficial. Thank you for your prompt response.

My pleasure.

To Whom It May Concern:

This correspondence is in regards to (explain the situation).

At this point, you are asked the cease such behavior and to release the money within ___ of receipt, and not thirty. There is no reason why the money should be kept this long to begin with. By keeping the money this long, your company does the following damage to me: (explain).

If this matter continues, I may have no choice but to possibly pursue action in Court for relief, under tortious interference with contract (Atlanta Market Center Management Co. v. McLane, 503 SE 2d 278 - Ga: Supreme Court 1998) and/or money had and received (OCGA § 23-2-23).

Although I hope that I will not have to resort to litigation, I may have to in order to ensure that money that belongs to me is not being held for no reason.

Sincerely,

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