Legal Question in Business Law in California

I entered into a contract agreement with an employer, signed by both parties. that simply states that I would provide repair service to their existing customers as an independant contractor. I would use my own vehicle, tools, and expendables. My part of the contract required I make the expert repairs to the customers equipment (emergency generators). As well as perform routine maintenance. The employer agreed to pay me $42.00 per labor hour, including travel time. And .50 cents per mile round trip. During the course of my working the employer informed me it would no longer be possible for me to drive my personal vehicle to job sites.

He requested I use his company vehicle. I inquired about the fuel cost at this time, his response was that we would work out the cost of using his vehicle. Being skeptical I continued to invoice him at the agreed upon pricing. The only change I made was not to total the cost per mile on my invoices. I continued to list the miles to and from the job sites, but did not enter the charge per mile. I also paid for the fuel to operate his vehicle.

After two weeks of providing services for him, I requested some kind of proposal regarding the outstanding unpaid mileage. He then created a spreadsheet that he said demonstrated the cost of using his vehicle, and that it absorbed any monies I might have coming from the mileage costs. After reviewing his spreadsheet I promptly informed him of my disagreement with his numbers. Due to the fact that his company was also billing the end customer for mileage costs, while I was paying for all the fuel.

In short he was charging me to use his vehicle and also charging the customer.

I informed him I would have to charge him the agreed upon amount of .50 cents per

mile.

At this time he convinced me to allow him to review the numbers and consider my objections. He would reconsider the matter and come back with a new proposal. He felt that if we both worked toward an agreeable compromise this issue could be worked out to both our satisfaction. in the interest of maintaining a professional working relationship I agreed to consider a revised proposal.

After a week I was forced to push the issue and submitted an invoice for all the unpaid mileage. He then came back with a new proposal which now charged me for the miles to drive his vehicle to my shop and store it there, due to the nature of the emergency equipment I serviced for his customers. It was in the interest of quick response time that I dispatched from my shop.

The new numbers he proposed indicated that in fact I owed him money for use of the vehicle, that the additional miles to my shop far offset the amount I submitted for past due mileage.

At this point I strongly disagreed and we exchanged words. He got very angry and insisted I return to his shop where I was to clean out the vehicle and leave. I told him that I was certainly done providing service for him but it would not be possible to clean out the truck at his shop. I would drive the vehicle to my shop where I would remove my tools and equipment. And drop the vehicle off at his shop the following day.

He then threatened to report the vehicle stolen if I did this, having no choice I stopped talking with him and drove the truck to my shop where I cleaned out my stuff.

Fearing the whole way that I would be arrested for grand theft auto.

After reflecting on the situation I have been thinking, It would be foolish for me to drive the vehicle after he made those threats.

Also three of the unpaid invoices he's holding are for repairs and routine maintenance to the service vehicle in question.

My questions are these: 1. Do I have a legal right to expect payment based on our only signed agreement?

2. Do i have any legal basis to file a mechanic's lien against his vehicle if he refuses to pay me?

3. Someone please advise me on what I should do now, My family depends on this money for basic living expenses, and I would like to resolve this quickly without losing my money?


Asked on 3/31/12, 2:32 am

3 Answers from Attorneys
Patricia Meyer Patricia Meyer & Associates

Is there anything in contract specifying the purpose of the mileage allowance? Is your travel time compensated by your hourly rate? The contract language will govern.

Typically such allowance is given for gas and wear and tear on your car.. No wear and tear on your car, but you are continuing to pay for gas which is certainly a component of a mileage allowance. Perhaps suggest he pay for gas.

But if you do litigate the contract will govern and if mileage is seen as a typical allowance you could lose the amount of the $.50 attributable to wear and tear. The IRS has regulations breaking this down.

So it would be wise to negotiate based upon your intentions of what the car allowance was intended to cover when you made the agreement.

Good luck.

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Answered on 3/31/12, 6:53 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I think that when the employer substitutes its vehicle, it is obliged to pay for the gas and otherwise to keep the vehicle maintained and ready for use; however, the employee is not entitled to a mileage allowance when he is being paid on an hourly basis portal to portal.

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Answered on 3/31/12, 9:23 am


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