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I have a contractor of mine that has threatened legal action…

Customer Question
Hi I have a...

Hi I have a contractor of mine that has threatened legal action for not paying them. They have also dragged my client into the situation and threatened to stop work on all our works.. the reason is they believe invoices are overdue, but my question is around the validity of the invoices and having a claim approved prior to invoicing which they haven’t and then just demanding payment in their invoice.. they caused my client now to question my ability as a company and are questioning my ethics, not to mention the potential loss to our overall client if they stop work.. is there a case for defamation in this instance

Lawyer's Assistant: Because employment law varies from place to place, can you tell me what state this is in?

Victoria

Lawyer's Assistant: Has anything been filed or reported?

Nothing yet, they have stated that if I do not pay now they will take legal action next week

Submitted: 10 months ago.Category: Australia Law
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Customer reply replied 10 months ago
I’m in the telecommunications design industry..
Answered in 13 minutes by:
9/27/2017
Solicitor: Leon, Solicitor replied 10 months ago
Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 46,918
Experience: BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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Hi, I am Leon, a NSW Solicitor. I will be assisting you with your question. If you choose a telephone call, you will be charged an additional fee.

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Solicitor: Leon, Solicitor replied 10 months ago

Good Evening

What does the contract you have with them say about payment?

If you are not paying them it ma not be defamation but you have to be able to show they have breached the contract and because of the breach you have a right to withhold payment.

Also when given the invoices what have you done to notify them about the breach of the contract?

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Customer reply replied 10 months ago
I believe they are defaming me me telling everyone that I simply have not paid their invoices. In fact I don’t actually have a signed contract with them. Some of the individual jobs I gave them a Purchase Order, but we don’t have a contract together that talks about payment. There has been a non written agreement of 60 days as these are now over. But they just chose to invoice when it suited them on a particular day and are now demanding payment. I believe unless I agree a claim and give them approval to invoice they should not have invoices, therefore meaning the invoices are not valid and they therefore have no right to be potentially claiming action against me for non payment
Solicitor: Leon, Solicitor replied 10 months ago

Good Evening

When you give them a purchase order do you ask for a quotation before they start?

On what basis do you say "unless I agree a claim and give them approval to invoice they should not have invoices"

The law says you invoice when the work is done.

If they have done the work, you cannot refuse payment if the invoice has been issued. They choose when to invoice.

I have an issue with what you are saying, if you cannot show they have knowledge of your requirement to invoice when you approve.

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