Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
It was a deal with the client, they run the business, the commercials belong to them. they hired the agency to help them out.
original bill was about $1100, now its closer to $1500 with interest
the business owner has said that they paid their bill and owe me nothing more.
Thank you for your follow-up, Kris.In that situation the party to pursue would not be the agency but the client himself. Here is why:Unless you had a contract with the agency, the third party was just that, a third party to the agreement and one with whom you did not have 'privity' (that is, a contractual obligation). Since there was no obligation, the agency had no duty to pay you. It is irrelevant if the client paid them, he didn't pay you, and since the agency had no duty to compensate, the debt remains viable and open against the client. If he is refusing to pay, consider taking him to small claims court in the county where the client is located, or if there is a 'choice of law' clause in your agreement, wherever that jurisdiction is for the debt owed. I do not see why the agency would be in any way related to this as you never had any agreements with them yourself.Good luck.
ok, i have another question, this was almost 2 years ago, when I agreed to do this for the client in question, I unfortunately did not get a signed contract. do I still have grounds since I did complete the production for them?
Thank you for your follow-up, Kris.So long as you performed any sort of work for the client, you are entitled to compensation. Otherwise the client is being 'unjustly enriched' at your expense, since you did the work but were never paid for it. Consequently filing suit if you can prove that you did the work is permitted once all other attempts at collection have failed.Good luck.
what do you think of collection agencys in this case? do they work well in getting collections?
I have in the past done a small claims case and was told at the end that now there is no guarantee that we will ever get paid. it was up to us to collect after we won. Luckly the loser paid, but we were afraid that we would never get paid.
Kris,A collection agency ends up purchasing your debt on pennies on the dollar but takes the risk of collection on themselves. If you do not want to deal with the hassle and are willing to accept far less than the debt is worth, then that may be a viable option. But that, ultimately, is your preference. There is always a risk the other party will not pay and you will be forced to pursue greater measures toward being compensated.Good luck.
well, a greater measure of being compensatied would be small claims court, but then again, they say there is no guarantee of collection even after you win.
Kris,That is correct but that would be your choice, whichever way you decide to pursue it.Good luck and kindly rate my answers to you at this time if satisfied with my assistance. Thank you!