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Started By
Message
Legal question on not getting paid for services performed...
Posted on 11/15/16 at 8:49 am
Posted on 11/15/16 at 8:49 am
I did some consulting work for a company (unbeknownst to me) that was having financial difficulties. Around the time I completed my services, they were bought out by another company (they did not file bankruptcy) and informed me (and several other consultants and contractors) they were not responsible for the other companies debts and refused to pay.
Is this correct? Just want to get an opinion to see if this worth pursuing with a lawyer.
Is this correct? Just want to get an opinion to see if this worth pursuing with a lawyer.
9
Posted on 11/15/16 at 8:51 am to BoostAddict
Typically when a company is bought out, the purchaser buys all the assets and the debt.
Posted on 11/15/16 at 8:52 am to BoostAddict
What does the contract you had with them say?
Posted on 11/15/16 at 8:57 am to tgrbaitn08
quote:
What does the contract you had with them say?
I just have a purchase order... doesn't really get into that stuff. In hind sight, a mistake on my end, but I did a lot of work with them and they always paid promptly.
Posted on 11/15/16 at 8:57 am to BoostAddict
They are responsible for any debts accrued by the company. If you have a signed contract I would just go to a lawyer. If you don't have good paperwork you might have to eat the loss.
When this happens the selling party was not honest about multiple obligations and the buyer is having buyers remorse as the debts roll in.
When this happens the selling party was not honest about multiple obligations and the buyer is having buyers remorse as the debts roll in.
Posted on 11/15/16 at 8:58 am to BoostAddict
Asset purchase. You're fricked basically.
Posted on 11/15/16 at 8:58 am to bountyhunter
quote:You have no idea what you're talking about.
They are responsible for any debts accrued by the company.
Posted on 11/15/16 at 9:00 am to BoostAddict
quote:
and informed me (and several other consultants and contractors) they were not responsible for the other companies debts and refused to pay.
Sounds like BS with a company purchase.
quote:
Just want to get an opinion to see if this worth pursuing with a lawyer.
Is the amount owed worth your trouble? Don't need the number. none of my business and it's your finances.
If I decided against pursuing the cash with a lawyer I would pursue with BBB complaint if applicable and if REALLY pissed, social media.
Good luck.
Posted on 11/15/16 at 9:00 am to iAmBatman
quote:Totally wrong. If they buy the entire company (the stock) then they maintain the debts. 99% of the time the new entity buys the assets only and not the liabilities. OP will be left to chase a defunct LLC or Corp that has no assets and no money. Dead issue.
Typically when a company is bought out, the purchaser buys all the assets and the debt
Posted on 11/15/16 at 9:01 am to BoostAddict
quote:
I just have a purchase order... doesn't really get into that stuff. In hind sight, a mistake on my end, but I did a lot of work with them and they always paid promptly.
Try to compile as much documentation and dialogue via emails as you can showing you provided a service that they solicited.
Go to a lawyer and show him that you had a business relationship they receive services that you provided
But honestly without a contract or some sort of signed agreement I think you may be shite out of luck
Posted on 11/15/16 at 9:02 am to BoostAddict
If the liability wasn't disclosed to the buyer and agreed to be transferred, you're not getting paid.
This post was edited on 11/15/16 at 9:06 am
Posted on 11/15/16 at 9:14 am to BoostAddict
There's your issue - purchase order vs contract.
Good luck.
Good luck.
Posted on 11/15/16 at 9:18 am to eng08
quote:That's not his issue.
There's your issue - purchase order vs contract.
Posted on 11/15/16 at 10:08 am to eng08
quote:
purchase order vs contract.
once he received the purchase order, he should have drawn up a contract.
Posted on 11/15/16 at 10:17 am to BoostAddict
Did the new owner buy the entire company or just the company's assets? If the LLC or corporation was what was purchased, you might have a case. If the new owners only bought the assets, you're screwed
Posted on 11/15/16 at 10:20 am to BoostAddict
What kind of money we talking here?
You probably fricked. I hit a similar situation and was basically fricked but was able to get them to pay because the work(web programming) went down and they needed help fixing it. Dumbasses didn't know how to renew a domain.
You probably fricked. I hit a similar situation and was basically fricked but was able to get them to pay because the work(web programming) went down and they needed help fixing it. Dumbasses didn't know how to renew a domain.
Posted on 11/15/16 at 10:22 am to The Mick
quote:
Asset purchase. You're fricked basically.
This, but you may not be fuct. Find out who actually sold the assets and sue them personally, the old company name, and the new ownership group.
Posted on 11/15/16 at 10:23 am to The Mick
quote:
Typically when a company is bought out, the purchaser buys all the assets
Posted on 11/15/16 at 10:24 am to tgrbaitn08
quote:and?
once he received the purchase order, he should have drawn up a contract.
He still would not have been paid (unless the acquirer participated in the agreement and signed off as client and debtor).
Posted on 11/15/16 at 10:25 am to sabanisarustedspoke
quote:
Find out who actually sold the assets and sue them personally, the old company name, and the new ownership group.
Sue everyone! Terrible advice by the way.
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