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I was a contractor for a delivery company and asked my driver

if we could run the...
I was a contractor for a delivery company and asked my driver if we could run the company under his name because I was about to lose my contract. He agreed and l paid for him to become incorporated. Now, 5 months later, he left the company and thinks the company is his and the money is his. We have a verbal agreement but nothing written down. I have paper work to show that under my company name he got a pay check and under his company name he was getting a pay check. What do I do now?
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Answered in 7 minutes by:
6/22/2013
Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 56,022
Experience: 32 years of experience practicing law and a businessman.
Verified
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.


Good evening. You still have recourse against him. If there is nothing in writing, it is a more difficult process, but the lack of a written contract can be overcome by the concepts of promissory estoppel, detrimental reliance, and unjust enrichment. This situation arises when Person A relied upon the verbal agreement, Person A performed based on such reliance, and because Person B defaulted, such reliance is now to Person A's detriment. Where there is i) partial performance by Person A based upon the mutual promises, ii) Person A relied upon such promises to perform, iii) Person B's failure to perform would be to Person A's detriment, and iv) result in Person B being unjustly enriched, Person A can overcome the legal requirement that the agreement be in writing. Your facts meet all these elements so you can pursue him based on a breach of contract cause of action. If he will not pay voluntarily, file suit against him. Once the suit is filed and a judgment awarded, you become a judgment creditor, and if the losing party doesn’t then pay the judgment, you can have the sheriff serve a summons on the losing party for a debtor examination. That forces the losing party to meet the judgment creditor in court and answer questions under oath about the losing party's assets. After that information is obtained, the judgment creditor has the power to garnish wages, attach bank accounts, have the sheriff seize other personal property, and/or place liens on any non-homestead property to satisfy the judgment.


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Customer reply replied 4 years ago

THANK YOU LEGALBEACON BUT WHAT CAN I DO ABOUT THE MONEY HE IS HOLDING FROM ME NOW? I HAVE A FAMILY TO PROVIDE FOR.

You're welcome...it's my pleasure to help. Unfortunately, if he won't release it voluntarily, you will have to sue him to get it. So, what you want to do is raise the stakes on him so that he knows that not complying with your demands is going to cost him far more in the end than simply releasing the money now. You should him them a certified, return receipt requested letter detailing the history and your agreement, and demanding that he release your money in total within a short specified period of time. Inform him that if your demand is not timely complied with, you will have no choice but to file a suit against him for your damages. BUT, be sure to specifically mention that you will be filing this claim not only as a breach of contract case, but also as a fraud cause of action, which will entitle you not only to your damages, but also an additional amount equal to multiple times your actual damages as punitive damages. That should provide plenty of incentive to comply with your demands; but, if it does not, file your suit.


Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 56,022
Experience: 32 years of experience practicing law and a businessman.
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Richard
Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 56,022
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