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Zachary
Zachary, Attorney
Category: Legal
Satisfied Customers: 3930
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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I own a small fulfillment company in Jackson Hole Wyoming.

Customer Question

I own a small fulfillment company in Jackson Hole Wyoming. We process internet orders for a client. I have not been paid by this client since the beginning of July. So my question is can I legally hold a clients product until payment is received for past due invoices?

We are planning on terminating our relationship with this client ( there are no contracts ) but are hesitant to do so without being able to get paid for the past two months. We know if we give him back his product, we won't see any payments.

So in short, can we legally hold his product until payment is received in full for all past due invoices?
Submitted: 11 months ago.
Category: Legal
Expert:  Zachary replied 11 months ago.
Hi,

My name is Zachary and I will be answering your legal question today. Before I go on, I need some further information from you.

Can you please explain to me exactly what you do for your client? My understanding of your relationship with the client is that it sends you products and when those products are ordered by customers, you "fulfill" those orders by sending the products to the customers. Is that correct?

Also, you state you have no written contract with the client. What are the terms of the deal between you then and how are those terms memorialized?
Customer: replied 11 months ago.

Hi Zachery,


 


Thank you for getting back to us. Yes you are correct in how we process orders.


 


We have been working with this client for around 3 years now and have never needed a written contract. We have had basically the same pricing since the beginning and have gotten paid. The owner of the above business and I sat down and had a meeting about two weeks ago and again came to a verbal agreement on pricing, but he is still not paying.


 


As I stated earlier we are looking to end this relationship ( for many reasons ) but want to make sure we get paid in full before we do.


 


Can I legally hold his orders/product until we get paid in full for all work that was rendered in the previous months? If not, how do we guarantee payment. He owes us around $ 3000 and that is a lot of income for us.


 


Thank you


 


 

Expert:  Zachary replied 11 months ago.
Thank you for your response.

Your situation could almost be seen as a warehouseman situation, and fall under the following law: http://legisweb.state.wy.us/statutes/statutes.aspx?file=titles/Title341/T341CH0AR7.htm

This law would allow you to assert a lien on the goods in your possession for the money owed to you. However, for the law to be triggered, you have to provide a receipt at the time of the receipt of the goods which state that any good received shall be subject to the lien for overdue invoices.

So, the goods you currently have in your possession, you cannot place a lien on because you did not exchange a receipt when you took the goods which stated that they were subject to the lien.

Please let me know if you have any further questions. Please also kindly consider rating my answer positively so that I am credited by the website for my work on your question. Rating positively does not cause an additional charge and does not prevent us from further discussing your questions.

Kind regards,
Zachary

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