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LegaldEagle, Attorney
Category: Business Law
Satisfied Customers: 269
Experience:  Over 10 years of Real Estate, Corporate and Estate Planning Experience
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I paid a company 11,000 dollars to create, and manage an ad

Customer Question

I paid a company 11,000 dollars to create, and manage an ad campaign and host a website for my home business for 1 year. There was a contract and they just sent me a letter that states that because of the down turn of the economy they are closing down opperations. They are not managing my account or hosting my website anymore and they kept all my money. Is this illegal? Am I entitled to some of my money back?
Submitted: 8 years ago.
Category: Business Law
Expert:  LegaldEagle replied 8 years ago.
You are entitled to a pro-rate reimbursement of the money that has not been used. Depending on what that amount is, you are asking the right questions as far as whether you want to use good money to chase a business that is probably heading in the wrong direction. You need to look at your contract and see if they put in a forum clause that would make you go to Florida for litigation. If so, you may have to hire a Florida attorney to handle the litigation. If the company doesn't show up or answer the complaint, then you will get a judgment. But it doesn't end there, you still have to collect on the judgment and if the company is defunct or close to bankruptcy then all of your time and money are probably wasted.

I think the first thing to do is to send a certified letter to the company and demand a return of your investment and see how that letter is received. If the letter comes back as unclaimed and they no longer have phone service, then its a good bet that they would not have any assets to cover payment of a judgment you would have to spend money to get.

The botXXXXX XXXXXne is yes you are entitled to some of your money back, but you need to figure out if its worth spending more money to get that amount. So from here you need to figure out how much you are owed, how much it would cost to obtain a judgment and the likelihood of payment for your judgment.

Take a few minutes to think that over and let me know and I will be more than happy to continue this discussion.
LegaldEagle and 2 other Business Law Specialists are ready to help you
Customer: replied 8 years ago.

Sorry I am new to this. I want to ask you how to send a certified letter to the company. I clicked the accept button and it asked me to give you a deposit. Is there a specific amount that I'm supposed to deposit?

Expert:  LegaldEagle replied 8 years ago.
Its ok, I see you accepted the question so there is no need to do anything further.

As far as sending a certified letter to a company follow this link:

which is a link to the united states post office explaining certified mail. You will want to send your letter certified mail with return receipt requested that way you will be able to tell if the company recieved your letter and also who signed for it.

I hope this helps, and please reply if you need anything further.
Customer: replied 8 years ago.

Should the letter just ask for what I am owed and an explanation of how I came up with my figures?

Expert:  LegaldEagle replied 8 years ago.
Yes it should start out like:

I have received your letter concerning the closing of the operations of your business. I would like a refund of the money I have paid you regarding the service that was agreed upon in the contract dated xx/xx/2xxx. The amount necessary to make me whole is $xx.xx. Be advised that I will now have to pay someone else the amounts to create and manage my website (if it needs to be created again I do not know, but if not then just manage). I would appreciate it if you would refund me these monies, otherwise I may pursue my legal remedies in court. Please contact me at your earliest convenience to discuss, if I do not hear from you within 20 days I will assume that you have refused to reimburse me the amounts I am owed.