Customer Does Not Pay!

 
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Old 01-12-2007, 10:23 PM   #1
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Customer Does Not Pay!


I installed plant material for a customer of mine and he decided not to pay me, now he's an ex-customer. Here's what happened: He was a regular landscape maintenance client for maybe 4 months when he started talking about installing plants at his business (Signature Fitness in Northern New Jersey) - After going back and forth with design ideas and budget, we agreed on what plant material would be used. I mailed the contract and never heard from him for like 3 weeks until he called me on the status, I replied that I need a deposit and he said ok - so I retained the deposit of $1200.00 BUT never signed the contract (I know, my mistake) - I purchased the plants - did the install - he saw the progress mid-way and said it looks great, finished, billed him 2X and never received payment. Then he calls and says that he thought he was getting different plants (I showed him pictures and he knew what he was getting) - and he wanted to wait until spring to pay me - I said ok but the next day called him back and said that I'd rather have payment now as stated in the contract he refused to sign - Long story short - we exchanged words and I told him I would take him to court or just remove the plants - he said go ahead. - Now, the balance is $1800.00, is court reasonable for that amount without a signed contract, or do I rip out the plants? - I'm a little bull headed and don't want to just let it go, I can't work for free. I'm thinking of removing ALL the plants - and the $1200.00 he paid me was for the design fee, topsoil, fabric and mulch......Advice?

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Old 01-12-2007, 10:26 PM   #2
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Re: Customer Does Not Pay!


You can't legally remove stuff you've already installed...

Looks like you're headed to the magistrate's office, huh?
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Old 01-12-2007, 10:33 PM   #3
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Re: Customer Does Not Pay!


I think You'll be in legal trouble if you remove anything!
go to a book store and pick up a book from nolo press on how to do a small claims court suit yourself. small claims court in Ca is good for up to $7500. like they say "good judgement comes from experiance. experiance comes from bad judgement. "Good luck in court . Drift
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Old 01-13-2007, 12:06 AM   #4
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Re: Customer Does Not Pay!


Pay attention to this part of my contract.



30% due upon acceptance of this proposal and the balance is due in draws commensurate with work completed. The materials remain the property of the Contractor until paid in full by purchaser. All invoices are to be paid within ten (10) days from date of invoice. Any Legal expenses incurred for collection will be borne by the purchaser. No retainage allowed.. All terms of this contract are contingent upon strike, accidents, or other causes beyond our control
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Old 01-13-2007, 12:16 AM   #5
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Re: Customer Does Not Pay!


I love that Teetor, I am going to use it!
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Old 01-13-2007, 12:22 AM   #6
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Re: Customer Does Not Pay!


Lots of contracts have been posted here, including mine. Search the archives.
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Old 01-13-2007, 12:27 AM   #7
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Re: Customer Does Not Pay!


Quote:
and I told him I would take him to court or just remove the plants - he said go ahead.
If he said go ahead do it. Might want to have it in writting.

Quote:
The materials remain the property of the Contractor until paid in full by purchaser.
Has this clause been tested in court and in which states?? I like it .
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Old 01-13-2007, 02:05 AM   #8
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Re: Customer Does Not Pay!


I would consider a lien on the property.

If you didn't get a signed contract, there isn't much you can do in small claims court. It will be your word against his.

Write a letter asking for payment or specific instructions on what he would like. If he wants to have different plants, great, go remove the ones you installed and then send a bill to get prepayment in full on a new contract. Small claims court is not worth the effort yet, IMHO. I would talk with an attorney about that option and his opinion of how to proceed.
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Old 01-13-2007, 08:33 AM   #9
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Re: Customer Does Not Pay!


teetor,

the problem here is there is no signed contract. So even if he had that clause, and do check with an attorney as to the validity of that clause superceding state law, it wouldn't matter.

without that contract, it falls under state law, and here in NJ..."the contractor gets screwed" is the last line of every law involving contractors.
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Old 01-13-2007, 09:38 AM   #10
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Re: Customer Does Not Pay!


I do like that clause Teetor. Like I said, it's my own fault because I do have a pretty solid contract that I just didn't push to have signed - and something told me not to work with this guy - I always had a bad feeling about him, but when he gave me the deposit on the spot, it made me change my mind.....lol

- I'm going to look into the Nolo book - they're pretty good - and explore a few more options before deciding. I didn't think pulling them would be a legal problem for me because HE doesn't have a contract with ME either. So if I pull em when the place is closed and he comes to work and sees no plants, I'd just say that since he didn't pay me for the material, I removed it. Plants? - What plants? - What he did pay for I left (design fees, consultation, topsoil, fabric and mulch) in other words, he paid for the prep work. Sounds good to me, but maybe not to the courts... - -
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Old 01-13-2007, 09:45 AM   #11
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Re: Customer Does Not Pay!


What would happen if you removed the plants becuase he stated he wanted different ones? Of course he would have to pay before the new went in?

Then he can see how ineffective our court systems are
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Old 01-13-2007, 09:49 AM   #12
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Re: Customer Does Not Pay!


Quickly look into the filing of a lien!! A lien is time sensitive and does not require a contract.

You did work on the property and planted your shrubs, Because of the material and labor, you now have an interest in the property. If you remove the plants, you may lose your interest in the property.

If you file a lien, you can prevent the sale or eventually foreclose - it takes time and you may not want the property anyway, but you want to be paid for your materials and labor. You also can collect interest.

A lien will prevent the sale of the property, but most importanat, it is a public record AND and others with an interest in the land (banks and any partners) will find out.

It is a powerful tool and can prevent him from getting any future financing or loans.

P.S. - If you want to extend your lien rights go back and do some minor improvement that you can document (have a supplier deliver a shrub and keep the receipt). Since there is no signed contract, it is an improvement to the land.
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Old 01-13-2007, 09:59 AM   #13
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Re: Customer Does Not Pay!


I think the lien rule must differ State by State because I have been told it has to be a $5000.00 dollar minimum and that you do have to have a contract. Otherwise you could just file alien on your enemies?

Not saying your wrong,,,just don't think it works that way everywhere?
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Old 01-13-2007, 11:50 AM   #14
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Re: Customer Does Not Pay!


Rip out the pants = go to jail.
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Old 01-13-2007, 11:59 AM   #15
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Re: Customer Does Not Pay!


Quote:
Originally Posted by Grumpy View Post
Rip out the pants = go to jail.
Yeah, that would be rape....
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Old 01-13-2007, 12:00 PM   #16
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Re: Customer Does Not Pay!


amazing how 1 little letter makes so much differenc
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Old 01-13-2007, 12:15 PM   #17
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Re: Customer Does Not Pay!


We've all been there.
Keep in mind ,us contractors are spread out across the U S .
Consumer laws differ. Here in Calif. NO court will hear a claim from an
unlicensed contractor trying to recoup money.
We 're a small father Son repair and remodel co. I'm just starting out myself. This is year 45 in the trades so far. We are lucky we only work for nice folks. We can do this because of my network of good past customers. I've been where you are,and learned. as far as leans ,he may rent this property. My take is He is cagey ,and He never planned to pay you from the get go ! Get some new work from nice folks,
Go to the book store !

What do you get ,when you didn't get what what you wanted ?
EXPERIANCE

Good luck Drift
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Old 01-13-2007, 01:31 PM   #18
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Re: Customer Does Not Pay!


Lien requirements do vary from state to state.

I have never heard of a requirement over $1000. In most states there is no minmum.

The requirement is that the material or labor must be used in the improvement of the property.

Lien rights were made to protect BOTH material suppliers and contractors. Often a contractor and supplier will work together and the supplier will file a lein of he was not paid in FULL. - 5 or 10% owing on materials will still permit a lein.

If a contractor is paid, the supplier can still file a lien if he can prove the material was used to improve the property. In some cases, the supplier must prove delivery to the site.

Lien laws can be complicated, but a good contractor should know how to exercise and protect his right to be paid for work done. - The contract may get into the quality and terms.
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Old 01-13-2007, 02:47 PM   #19
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Re: Customer Does Not Pay!


Quote:
Originally Posted by Grumpy View Post
Rip out the pants = go to jail.
Assuming you mean plants....We all know that if you go to jail for this you will be locked up for years. They will probably take your house and vehicles. Might even make your wife hook?

It is a very serious crime and I will suggest you don't do it beacause I could become an accesorry to this crime from my previous post!
I don't want to go to jail
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Old 01-13-2007, 09:56 PM   #20
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Re: Customer Does Not Pay!


The main problem is that there is no contract. There isnt much that you can do with out that...
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