Legal Question in Business Law in California

Last year, I was hired by a (1 man) corporation and performed that work overseas. In Germany and in India. Had to take time of my full time job in Thailand to do it. Fast forward 5 and 8 months.

FACTS:

1. All I got so far was reimbursement of the costs. (I had paid for the boss' flight, rented the car, paid for our hotels and later his hotels and once also some other subcontractor's stay in London upon the boss' request. Also purchased a new Garvin GPS for driving in Europe... That was all reimbursed.

2. But not a single Dollar towards my actual labor!

3. The boss promised to transfer $ 1,000 by April 1st this month to my account in CA. And I called him when the usual Wells Fargo Bank's e-mail about the transfer failed to materialize.

4. He said he was driving and he cut me off, saying "I was just paid TODAY" and that he "would make the payment". (My bank has a branch in his small mountain resort town, so he could just combine the payment with grocery shopping).

5. It's now the 2nd and the guy owes me

$ 3,000 for work in Germany and $ 1,500 for work in India (originally only $ 1,250 but he was pleased with my performance and I mailed him my original receipts from the hotel, the car service, the flight as requested).

Sorry about the long-winded introduction.

Q1: AFAIK, a corporation must be a going concern and be able to meet its obligations to third parties. Otherwise, we would have zombie corporations messing with all its stakeholders.

(Never got some document saying I'm a subcontractor, but I gave him my SSN). But due to non-payment for labor, I don't expect a 1099-MISC for 2013...)

At this point, I'm unhappy with the whole situation and feel that the guy is giving me the sucker treatment. The promised $ 1,000 would be less than 25% of the unpaid bill for labor.

Q2: Would the corporation break the law by being unable to pay staff - while continuing as if they were having the cash needed to continue?

The ex-wife says the money goes up his nose... Oh well.


Asked on 4/02/14, 1:49 pm

1 Answer from Attorneys
Anthony Roach Law Office of Anthony A. Roach

Why would California have jurisdiction over these companies?

Read more
Answered on 4/02/14, 6:05 pm


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