Legal Question in Business Law in California

Advice on letter for irate customer

We have a California customer (a Mortgage company) who purchased a display space from us in the end of May who today is verbally demanding his money be refunded by Tuesday, 9/7 or he is threatening to sue. He paid $745. His contract has no time frame promised. The guide is in the proofing stages and will be finished within the next 4 weeks. Should we give him a letter that states he will have the guide by September 30th or we will refund his money -- or? He wanted us to pay him Tuesday and then if we produce the guide, he said he'd 'think' about paying us then. We want to avoid any type of filing, if at all possible. We'd replace him in this publication if we had time - but at this point we don't. Thank you.


Asked on 9/02/05, 4:34 pm

2 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

Re: Advice on letter for irate customer

Why are you so trembly about a 'filing'? He sounds unreasonable, and you could probably prevail in small claims where he would file. Unless the publication has a time to publish schedule that you have grossly violated, he is off-base demanding his money back. Write him a letter stating your reasonable position, and stick to it.

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Answered on 9/02/05, 6:46 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Advice on letter for irate customer

I guess there are two questions here: How do we avoid being sued; and if we're sued, will we prevail?

As the the second question, you might be in breach of contract for excessive delay in publication. This would depend upon a contract provision, express or implied; if, as you say, none is expressed, then the judge or jury will determine what was a "reasonable" time.

California law says perfomance under a contract is due within a reasonable time, and this is a question to be determined by the trier of fact (judge or jury). If you publish a guide that is clearly annual in nature, and the customer made no inquiry, I would suppose publication anytime within a year would be reasonable. If you made oral mention of a publication date "sometime this summer" it might be a closer call if you publish on the first day of autumn, or perhaps even the last day of summer.

As to forestalling a possible suit, this will depend in part on the strength of your legal position. If your position is strong, just be on the phone with the customer and explain the futility of sueing over $745 with little chance of winning. I would suggest phone contact even if you are running late, but most written threats or complaints should be responded to in writing. The main idea is to be truthful.

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Answered on 9/02/05, 6:07 pm


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