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My husband was in a business partnership with a friend. They…

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Hi there, My husband was in...
Hi there,
My husband was in a business partnership with a friend. They both completed a job under our friend’s incorporated company in Alberta. My husband was not a director. They both completed work for a contractor that was supposed to be paid early July. After expecting payment, the contractor stated it was an insurance job and wouldn’t be paid until the insurance company paid.My husband started his own incorporated company in August, after our friend moved. My husband decided to take on another job with the contractor, even though he still hadn’t been paid from the work in June. He also was borrowing the contractor’s trailer for business, and would have had to return it if he didn’t complete the job (The subcontractor went through a bankruptcy with one of his companies in June, and the owner went to Mexico Oct. 1st and won’t be back until January. The trailer was seized early October because it was listed under the bankrupt company, and my husband dropped it off at an auction). My husband accidentally made an error on the job, which had to involve a restoration company getting involved. Not fun. That invoice should have been paid by the end of October, but obviously that hasn’t been paid because of his error. This case is still ongoing, and he has business insurance if he needs to get them involved.Fast forward to October 31st, and the June job has still not been paid. I decided to contact the board of the church (the building they completed the work on) to find out if it was paid at all, or really an insurance job. The finance director put me in touch with their insurance company, and the insurance company had paid out the insurance portion of the building Dec/2016. So, it was never insurance work and should have been paid early July. The contractor just received payment Nov. 23rd. Because of the error my husband did on the job that’s separate from the work completed in June, the contractor is holding the money. The contractor knew our friend and my husband were working together, so they’ve paid the portion owing to our friend (who didn’t ever think he’d actually see a dime). The invoice and work was completed under our friend’s business. My husband is looking to take it to civil law on behalf of our friend’s business (he wants to work with us) to collect the rest outstanding, but is he able to do that if it’s not his business? Would my husband need to send a demand letter to our friend, and then our friend would need to sue the contractor? Our friend is also living in BC now. Is there another way? We’re not sure what the best route is to collect the money that is owing to my husband.
Submitted: 6 months ago.Category: Canada Business Law
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Answered in 19 minutes by:
12/2/2017
Business Lawyer: Legal Ease, Lawyer replied 6 months ago
Legal Ease
Legal Ease, Lawyer
Category: Canada Business Law
Satisfied Customers: 105,113
Experience: I am a practicing lawyer and have also been an online professional for 5 years.
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Hello! My name is Debra (formerly known as Legal Ease). Thank you for your question. I'm reviewing it now, and will post back again shortly.

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Business Lawyer: Legal Ease, Lawyer replied 6 months ago

I am sorry to hear this.

Unfortunately, you are correct and ultimately if you husband it to sue he has to sue his friend who then would add the contractor into the lawsuit.

So you husband should send a demand letter to his friend who is the one who owes him the money.

Does that make sense?

Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.

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Business Lawyer: Legal Ease, Lawyer replied 6 months ago

Is there anything more I can help you with at this point in time?

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