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Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 2156
Experience:  Practicing Attorney with 10 years experience
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I had a truck (semi truck) repair company with 2 other

Customer Question

I had a truck (semi truck) repair company with 2 other partners earlier in the year. We had a customer from New York bring a tractor in for repair for a blown engine. Originally they wanted it patched up so they could sell it. Towards the end of the job they decided they wanted it fixed right and were going to keep the truck. On major engine builds we take deposits upfront because it cost too much to do everything and then charge them. We did about 120 billable hours ($11k in labor) and had about $6k in parts that were non-returnable if not used. (Just like electronics at stores only these were internal engine parts) We did 95% of the work and after many "how much longer" questions the customer against our written advice removed the unit from the shop and took it to another shop. We informed the customer in writting that doing so would result in unfinished work and possibly little to no refund on parts but would refund any returnable parts once cleared. About 3 months after that unit left the company was closed as my partners and I simply were not making any money after payroll and overhead. Now this company has come out saying they are going to sue the company (now dissolved) and mentioned fraud. I do not know if they intend to sue just the company (which I understand anyone can choose to do for what ever reason but what concerns me is the mentioning of fraud. I don't know what was fraudulent about anything but there is an attorney mentioning it in their demand letter for reimbursement for the entire job. After they pulled their unit they reversed their previous credit card transaction and never paid their final invoice for the work. Told us to eat it and good luck getting it. My question is if the company was simply trying to get the job done and was taking too long for the customers likes and shortly went out of business due to payroll costing more than the money that was coming in so they never got a refund of any type (there was no money hardly ever after payroll) does that constitute fraud or is that just a scare tactic? I mean no one intentionally took money from this customer with the idea that no work was going to be done. We did 95% of it. We even took pictures of the work that was done. Wouldnt this simply be a lawsuit against the company and not personally to the officers of the company? The fact that they reversed their credit card charge and didnt pay the final invoice have any merit on things?
Submitted: 9 months ago.
Category: Business Law
Customer: replied 9 months ago.
As I'm sitting here thinking about it.. In a nutshell.. We did 95% of the work we charged for. The reversed a card transaction and they didnt pay the final invoice. We didn't refund them anything from unused parts. I think thats a good summary of things.
Customer: replied 9 months ago.
My question is simply a concern about being charged with fraud. I understand they can file suit against the company. I just dont want something filed against me personally. I did not attempt to defraud anyone nor did anyone else who owned the company.
Expert:  Asad Rahman replied 9 months ago.

I am sorry about your situation. Yes, fraud is just a scare tactic. They have to prove intent of fraud and that is very very hard to do. I think since he stopped his credit card transaction he really has not suffered any actionable damages. You guys could be sued individually since the company entity no longer exists to protect you all. It would be a weak claim but a claim nevertheless.

Expert:  Asad Rahman replied 9 months ago.

If you have no further questions a positive rating would be greatly appreciated