Legal Question in Business Law in Florida
I have a customer that order equipment from me back in 2008 totaling $2.1 million for a project. We have purchased all of the equipment now and have received payments of $1.5 million from the customer. Back in Nov 2008 they informed me they have to shut down the project. They now can not pay us the balance of the contract and we still owe some of our vendors money.
What are my options and can I take possion of the equipment and sell it? If I do sell the equipment am I obligated to pay the client any of the money from the sale?
Jon Berning
3 Answers from Attorneys
An attorney will tell you to take the equipment order, contract, correspondence, etc. to an attorney for review and analysis. In most cases, and absent a contractual provision allowing it, you can't take the equipment back. Again, consult with an attorney in your area for specific advice.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
Hi Jon:
I practice in the Business Litigation arena, and I would want to review your transaction docs to fully advise you of your options, but if you either a) have a security provision or b) obtain a judgment which can be enforced against your customer, YES, you will be able to get the equipment back.
Timing may be crucial, and you may wish to act quickly to get ahead of other creditors.
I have a number of business clients in FL and can practice in FL courts pro hac vice.
Call or email for no charge consultation/
If you have a document called a UCC-1 Financing Statement, then you may have the right to take the equipment back yourself. You also could sue the client and then if you win the case, you would be able to collect from any of the client's assets, including the equipment.
These can be complicated cases. You really need to consult with an attorney who is skilled in this area. In particular, you want to look for an attorney who is board certified in business litigation. This indicates a certain expertise in this type of claim. I am one of only 210 attorneys in Florida (out of the 87,000 attorneys in the State) who is certified by The Florida Bar as an expert in this field. We offer a free initial consultation, and would be happy to speak to you about the situation.
Related Questions & Answers
-
I own a S-corp mfg. company with a business partener in South Florida. We... Asked 5/30/10, 1:54 pm in United States Florida Business Law
-
I recently purchased a fishing charter boat business that also offers eco-tours and... Asked 5/28/10, 10:45 am in United States Florida Business Law
-
I purchased a existing franchise from a multiple franchise owner, Existing... Asked 5/28/10, 9:48 am in United States Florida Business Law