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I have a Sub contrator that I paid to his companys name that

is no longer doing work...
I have a Sub contrator that I paid to his companys name that is no longer doing work for my company. He is requesting pay for 13000.00 dollars for contractor work done that I agree are legit charges. He owes me for 9600.00 worth of contractor advances he has not paid back and has threatened the labor board with me. Is this somwthing a Sub contractor can do. Not reconize loans that he has cashed the check?
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Answered in 7 minutes by:
4/22/2009
TexLaw
TexLaw, Attorney
Category: Legal
Satisfied Customers: 4,430
Experience: Lead trial/International commercial attorney licensed 11 yrs
Verified
Generally, a subcontractor does not have a right to complain in front of the state labor board, as a subcontractor is not an "employee". You need to make sure that there is not an employment relationship between the two of you rather than a subcontract.

The fact that you have indicated that he took title to one of your trucks is somewhat puzzling. For a person to be able to take a title to a truck, he would have had to perform work on the truck and therefore has a materialman's lien or he would have had to have secured a judgment against you for the amount owed and seized your truck through an execution of the judgment. As there is substantial property at risk in this situation, I would go ahead and meet with an attorney to review your situation.
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Customer reply replied 8 years ago

He needed a truck to work for his had a blown a motor. He was supose to have my name put in as a lien holder. Never put in his name till he stopped doing work for this company, Isn't this black mail and and The fact that I write the check to his company name should make him a contractor just like I pay a repair shop. His own insurance, ete. How can a contractor take you to the labor board?

 

Thank you for the clarification. So, If I understand this correctly, you provided the subcontractor money to purchase a work truck. When he purchased the work truck, he placed title of the truck in his name. If this is correct, then you will have to sue the subcontractor for conversion, fraud, negligence, and/or unjust enrichment to either get the truck back or get the money back which you gave him.

In regard to your question about the labor board, this will depend on the state in which you are located. There may be some state law which would allow for the subcontractor to make some sort of complaint about you in front of a labor board. However, I have never heard of such a law and would find it highly unlikely that there is one. Generally, a subcontractor cannot complain about a general contractor to the state labor department, as there is no employer-employee relationship.

While you should contact a local attorney for more detailed advice, I believe that this person is likely just trying to scare you into paying him. If you are worried that he has information that may damage your business, and that he is threatening to release this information unless you pay him, then you do have a blackmail situation. If that is the case, then you should immediately contact an attorney for further counseling. However, if you haven't done anything that you are worried about him disclosing, then he, as a subcontractor, will not be able to file anything of consequence with a labor board.
TexLaw
TexLaw, Attorney
Category: Legal
Satisfied Customers: 4,430
Experience: Lead trial/International commercial attorney licensed 11 yrs
Verified
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