Business Law

Ask a Business Lawyer. Get Business Law Questions Answered ASAP.

Ask a Lawyer,
Get an Answer ASAP!

Business Law
This answer was rated:

For approx ten years weve subcontracted the installations

For approx ten years we've...
For approx ten years we've subcontracted the installations of metal products for a metal fabricator. We had completed a 1/2 year long contract wherein they owed us 65k for our services (they were slow payers) on that project.
A new project loomed with them that we were to start immediately following. We informed the Fabricators that we could not again finance their jobs and that their performance payments had to be ontime (the job had to pay for the job). They let us know that they could not pay us for the the last job [yet] and that payments for the next (much larger job) would be hard to make.
After much discussion of our mutual abilities concerning the financing of their project we agreed that if they could pay us what they owed us on the last project in weekly increments of 7k then we would use that money to fund the initial stages of the project. However they would have to come up with 10 percent down(28k) over the first 60 days in additional to those payments. And upon receiving their first payment (approx 30-45 days later) from the project they would have to begin progress payments to us for our installations services on this new project every 2 weeks. As per our original agreement when bidding project.
After eights weeks of services they informed us that we were no longer installing this project because they were afraid that future expenses wud exceed what they bid the job for and that they had made a deal with the general contractor of project to assume install for them. Emphasis was given numerous times that all were happy with our work as had been the case for ten years with them, but that they could not afford the project and wanted to do a materials only contract [now].
our investment into this 6-8 month project (prepaying all long term lodging leases, r&d oninstall methodology specific to this projects conditions, labor and extras, was approx. 45k. Loss of potential profit was 90k. loss of income for labors was 180k.
all contracts have begun verbally for approx. ten years during bid phase, with totals and payments made/due on first invoice solidifying mutual agreement.

RECAP.... 8 weeks on project / no progress payments for labors / they missed payments contrary to agreement for last project / they did pay their 10 percent down was paid against prepaid lodging lease costs for [entire] project to us / no notice or inclinations given by fabricator or general contractor as to any issues requiring reworking of schelduling costing or need to terminate etc / all completed work competed was already authorized as complete with no redress required.

Is attempting to bring suit for this matter a waste of time.
is there any case against the general contractor for not discussing their plans to lltake over our contract.
Are there any other avenues we should be pursuing such as criminal or civil if the two parties acted in collusion to interfere with our contract to their benefit, collusion, interference etc. We are aware that being right is not necessarily the most important aspect of winning any judgment in any venue. Please advise.

thank you very much.
Mj
Show More
Show Less
Ask Your Own Business Law Question
Answered in 44 minutes by:
10/3/2013
Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24,870
Experience: 20 years experience in business law - sole proprietor, partnership, and corporations
Verified
Hi! My name is XXXXX XXXXX I'll be the attorney assisting you.

Sorry for your situation.

Do you think the company has any money?

Do they have any assets?

What is the company form - an LLC, partnership, corp or what?

In what state are they located - in FL like you?

Ask Your Own Business Law Question
Customer reply replied 4 years ago


hello.


the company is financially sound florida corporation, tho experiencing difficulty due to large projects and length of time they have to wait for their payments.


they own their factory and manufacturing shop etc.


we explored financing the entire job ourselves as an option to get them to reconsider their choice and spoke with a factoring company that having run financials on the company in question approved factoring if we decided to pursue that course.


in that we are not privy to much more of their private information than this it would be impossible to say for sure. However they have other upcoming large projects on their board, and additionally they presently have a bond on the project in question limiting any attempt on their part to seek bankruptcy to evade (though for such a small amount we sincerely XXXXX XXXXX to be something they would really consider.


Although they are obviously cash tight at the moment they go through periods of cash infusion and monthly payments against what they owe us should be well within their abilities (assumed)

If they are generally financially sound - then I would file suit against them.


I don't suppose in your invoicing or anything that you state attorney's fees and legal costs are recoverable if you have to file suit?
Ask Your Own Business Law Question
Customer reply replied 4 years ago


no we did not have any protective wording to protect ourselves.


we were friends and believed that if anything so untoward was to happen to negate that friendship status that basic law itself would suffice.


 


part of question was whether or not the other parties have any responsibilities in this issue.


thank you


 


 

You are talking about the general contractor who took over the installation?
Ask Your Own Business Law Question
Customer reply replied 4 years ago

Yes. the project has a general contractor that hired the fabricator to provide product and installation.


the fabricator uses us for their installations.


the fabricator and general contractor reached a decision to transfer installation to the general contractor.


thus alleviating the fabricator from continued weekly payments to us without risking loosing their bond on the project.


the general contractor benefitted in that they were running very far behind and consistently not ready for the installs which would've eventually led to additional costs by us to fabricator and from fabricator to themselves.


thanks for your continued effort to get to the correct answer for me.

OK. Now I understand. That wasn't as clear originally.

Yes, you would have a claim against them for tortious interference of contract and/or business relations.

That they conspired with the fabricator to breach your contract with them.

As such - they have clear liabilty in tort - not just contract law. In tort - you can get punative damages along with compensatory damages plus attorney's fees and court costs.

Tortious interference with contract rights can occur where the tortfeasor convinces a party to breach the contract against the plaintiff, or where the tortfeasor disrupts the ability of one party to perform his obligations under the contract, thereby preventing the plaintiff from receiving the performance promised. The classic example of this tort occurs when one party induces another party to breach a contract with a third party, in circumstances where the first party has no privilege to act as it does and acts with knowledge of the existence of the contract. Such conduct is termed tortious inducement of breach of contract.

Tortious interference with business relationships occurs where the tortfeasor acts to prevent the plaintiff from successfully establishing or maintaining business relationships. This tort may occur when a first party's conduct intentionally causes a second party not to enter into a business relationship with a third party that otherwise would probably have occurred. Such conduct is termed tortious interference with prospective business relations, expectations, or advantage or with prospective economic advantage.

In either of the above situations, the tortfeasor's conduct must be intentional. There is no cause of action for merely negligent interference with the performance of a contract. [Wikipedia]


The fabricator is liable to you for your loss profits from the job plus whatever your costs were.


Construction Contracts

a) Owner/general contractor's Breach Before, During, or After Construction
Contractor can recover:

(1) before construction: only profits (contract price, less cost of materials and labor); (2) during construction: profits, plus cost of partial construction;
(3) after construction: the contract price, plus interest.




I think you have a strong case against both the fabricator and general contractor for your damages.


Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer.. I thank you in advance for taking the time to provide me a positive rating!

If you have any questions, about this or anything else, please ask for me, Law Pro, directly in the question and I will try to assist you as best I can.

For example, you would state, "This question is for Law Pro . . . (then on with your question).

I wish you the best in the future.
Ask Your Own Business Law Question
Customer reply replied 4 years ago

I do have a follow up to the question involving 'was a contract in play' in that we verbally negotiated a price and the duties, submitted an invoice showing the agreed upon amounts, received and showed on invoice their deposit, and performed all duties requested of us until breach.

I do have a follow up to the question involving 'was a contract in play' in that we verbally negotiated a price and the duties, submitted an invoice showing the agreed upon amounts, received and showed on invoice their deposit, and performed all duties requested of us until breach.


Yes, absolutely. Verbal agreements are valid. It's actually very surprising but that is more then enough for a valid enforceable contract - way more!

Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24,870
Experience: 20 years experience in business law - sole proprietor, partnership, and corporations
Verified
Law Pro and 87 other Business Law Specialists are ready to help you
Ask your own question now
Customer reply replied 4 years ago


I see there are no areas to leave remarks.


however I would like to tell you that your taking the time to fully understand my queries before handing out a 'boiler plate' response was both honorable and informative....and luckily was what I wanted to hear so that was also a bonus.


I would use your service, requesting you, again.


thx


mj

Thank you! Yes, please ask for me - Law Pro directly in the question so I'll be sure to get it.

Ask Your Own Business Law Question
Ask Law Pro Your Own Question
Law Pro
Law Pro
Law Pro, Attorney
Category: Business Law
Satisfied Customers: 24,870
24,870 Satisfied Customers
Experience: 20 years experience in business law - sole proprietor, partnership, and corporations

Law Pro is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Infolawyer

Infolawyer

Attorney

1,851 satisfied customers

Experienced lawyer

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

1,611 satisfied customers

Run my own successful business/contract law practice.

MShore Law

MShore Law

Attorney

1,233 satisfied customers

Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements

RGMacEsq

RGMacEsq

Attorney

751 satisfied customers

Licensed Texas General Practice Attorney

Barrister

Barrister

Attorney

646 satisfied customers

17 years practicing attorney, JD, BA, MBA

Ely

Ely

Attorney

577 satisfied customers

Counselor at Law.

J.Hazelbaker

J.Hazelbaker

Attorney

393 satisfied customers

Experienced and trained in the area of business law.

< Previous | Next >

Related Business Law Questions
When a partnership owns a business and one of the partners
When a partnership owns a business and one of the partners works in the business is that partner considered an employee?… read more
LegalGems
LegalGems
Juris Doctorate
10,717 satisfied customers
I have a business partnership, and we I have agreed to not
I have a business partnership, and we I have agreed to not do external business in the area where our partnership is doing business. As our partnership produces products, they could easily create new … read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
My business is registered in Delaware as an LLC with a
Hi Pearl, my business is registered in Delaware as an LLC with a partner. My partner is no longer with the company. I would like to move the business to PA where I live. I am also changing the name of… read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
1,001 satisfied customers
I need help with a business partnership dissolution. I can
I need help with a business partnership dissolution. I can give a detailed account of what I am asking on this or should I wait until I am connected with a lawyer?… read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers
I have a Tennessee corporation LLC that is being sued in
I have a Tennessee corporation LLC that is being sued in Colorado. If they want to pierce the veil of the LLC do they have to pursue that in Tennessee or can they do that in Colorado? … read more
Ray
Ray
Lawyer
Doctoral Degree
30,877 satisfied customers
What skill or tape does the real estate LLC investment need
What skill or tape does the real estate LLC investment need a full prospectus or to be a registered security? I'm doing my first non-residential commercial project and one of the potential investors p… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,698 satisfied customers
My wife started the business as an LLC and last year changed
My wife started the business as an LLC and last year changed it to a Scorp. I run the business for her (non paid) and have set up a bank account and checks in the new Scorp. 1. Do I need to phase out … read more
lucy7368
lucy7368
Juris Doctor
763 satisfied customers
Is there a rule which requires that a corporation (or LLC)
Is there a rule which requires that a corporation (or LLC) must have a lawyer in a civil case?… read more
Damien Bosco
Damien Bosco
3,390 satisfied customers
The 60% business owner to an LLC with no articles of
the 60% business owner to an LLC with no articles of organization, has done things that makes all of us want to separate. however the 40% owners hold all MHIC licenses. Can the 60% just move the compa… read more
Infolawyer
Infolawyer
Attorney
Doctoral Degree
1,851 satisfied customers
I am the 20% owner of an LLC partnership and my partner
I am the 20% owner of an LLC partnership and my partner (super majority) has not paid me for work done in 12 weeks. Our business agreement states that a member can resign with written notice but I wan… read more
KLAW
KLAW
Juris Doctorate
1,769 satisfied customers
If a corporation, like Lowes contracts a person to do my
if a corporation , like Lowes contracts a person to do my work and the contractor messes it up do I sue the company, the contractor, or both? … read more
P. Simmons
P. Simmons
Attorney
Doctoral Degree
35,305 satisfied customers
I have a LLC business in the state of Texas. It is currently
I have a LLC business in the state of Texas. It is currently a sole proprioter. If I want to add 2 partners do I need to change it to a corporation? Or can I leave as is and just generate an agreement… read more
Ray
Ray
Lawyer
Doctoral Degree
30,877 satisfied customers
I am in a Partnership LLC in PA and my business partner has
I am in a Partnership LLC in PA and my business partner has never paid me her share of the initial purchase of inventory as I paid for it on my personal credit card. Since she has never paid if it her… read more
LegalGems
LegalGems
Juris Doctorate
10,717 satisfied customers
I'd like to look into opening an business account for an LLC
Second opinion] I'd like to look into opening an business account for an LLC with a member that's currently incarcerated... and a personal account for the person that's incarcerated. My guess is a tru… read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,698 satisfied customers
I have an existing TX LLC, doing business in CA. This LLC
Hello. I have an existing TX LLC, doing business in CA. This LLC will generate income from all over the world. I am going to register the TX LLC as a foreign LLC doing business in CA. At the same time… read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
1,001 satisfied customers
Converting my llc business to a c corporation and looking
Converting my llc business to a c corporation and looking for a lawyer to sign the paperwork … read more
Richard - Bizlaw
Richard - Bizlaw
Juris Doctor
3,698 satisfied customers
I need to convert my LLC to a domestick stock corporation or
Hello, I need to convert my LLC to a domestick stock corporation or domestic stock and agricultural cooperative corporation. I need help with the purpose statement. Also, what is the difference betwee… read more
Damien Bosco
Damien Bosco
3,390 satisfied customers
I have an investment contract with a local business. I was
I have an investment contract with a local business. I was suppose to get 30% of profits monthly. They have defaulted on the agreement. What can I do? … read more
Roy Hadavi
Roy Hadavi
Attorney
Juris Doctorate
1,001 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x