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TexLaw, Attorney
Category: Legal
Satisfied Customers: 4430
Experience:  Lead trial/International commercial attorney licensed 11 yrs
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we had a business in Cadillac mi and represented the Gehl corporation.

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we had a business in Cadillac mi and represented the Gehl corporation. We had a credit for sales made at the time we closed the business. The amount about $12,000. Gehl signed a contract with a new company at this sight. The new company ordered parts and Gehl used our money to pay for some of these parts.Gehl thinks we should go after their new representatative for the money. We feel that the money was ours by agreement and that Gehl should not have given it to someone else. Do we sue Gehl and how?

Thank you for your question.

Tell me more about the business between your company and Gehl. What did you do for them and how did the credit come about?

Did you have a written contract with Gehl?
Customer: replied 4 years ago.

We sold farm equipment for Gehl. We had a contract with them. We closed our business and this was money earned by our contract.

If the credit was money due to you under the contract, then Gehl had absolutely no right to give it to some other company.

What exactly has Gehl said as to why they believe they could give the money to a third party?
TexLaw and 6 other Legal Specialists are ready to help you
Customer: replied 4 years ago.

So let's pretend that they want us to get our money from someelse. What would be our procedure being as to how they are in West Bend, Wi and we are in Ionia, Michigan?

In order to get the money from the third party, the third party must somehow be liable to you. You had a contract for payment with Gehl. Where there is a contract at play, the only time that a third party will be liable for payment is when the contract specifically states that they will pay (i.e., they are a guarantor), or they are a third party beneficiary.

Based on the facts you have stated, there is no legal theory that allows you to get the money back from the third party. The other party does not owe you the money and has no reason to return it. It is Gehl who gave the money to a third party, presumably in return for goods.

To sue Gehl, you would be best suited to file the suit in the county where they are headquartered. Because the amount is $12,000.00 that you are after, you will need to file suit in district court. It is too large of a claim to file in small claims court.

Because the claim is handled in district court, the rules of evidence and rules of civil procedure will apply, so you will need to hire a lawyer to handle the claim.