Legal Question in Business Law in California
Over Charged on a MFG plumbing Job
My question is I am a Controller for a MFG company and one of my division had plumbing done. The work charged was in excess of 300,000 for a 100,000 job. The contractor has been paid. Is there anything I can do, as I feel I was overcharged. Do contractors have to abide by ethical standards?
4 Answers from Attorneys
Re: Over Charged on a MFG plumbing Job
Any dispute should have been argued before payment, because then you could refuse payment and force them to negotiate, or sue you and justify the bill in court. IF, IF, you can determine there was any false billing in the details, or kickbacks, or other fraud, you can use that. But, absent such actual fraud, you can't complain now about the 'rate' charged, no matter how unconscionable. Your only remaining leverage to get a refund is the threat of them getting no other work from you. Be careful if tempted to 'bad mouth' them to others, or threaten to do so. Limit yourself to 'the truth, and only the truth' in any comments you make to anyone; otherwise you could get sued for slander. Next time, consult with counsel before allowing it to happen. Feel free to contact me for help.
Re: Over Charged on a MFG plumbing Job
It is not necessarily unethical to make a large profit on a contract with a knowledgable owner such as a manufacturing company. In a consumer context, I would feel differently, but a manufacturer (I assume that's what you mean by MFG) seeking to have a $100K+ job done should have enough sense to get competitive bids and draw up a contract that defines and limits what can be billed so that things like this don't happen.
Since it has happened, I think at this point your recourse is limited pretty much to reviewing the contract and billing documents very carefully to see whether the high charges are supported by the contract and work records, or not. If you simply signed a bad contract and the contractor performed and billed pursuant to the contract, I think you have no recourse in court.
Re: Over Charged on a MFG plumbing Job
I would carefully review the contract and compare and contrast its terms with the work actually done and the invoices from the contractor. It is not unethical if the contract was fairly negotiated and its terms were performed by the contractor.
Re: Over Charged on a MFG plumbing Job
It depends. If the plumber was completely honest with you, it may be more difficult. However, I may be more aggressive than some other attorneys. I might look for evidence of any material misrepresentation, and if there is such, perhaps the entire agreement was fraudulently induced. In such a case, you might have a right to all of your money back minus maybe his actual costs and time spent. Such a legal position may cause him to re-negotiate if he is smart. Let me know if you want me.
D. Bakondi
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