Legal Question in Business Law in Florida

So, here's my situation. I'm a small business owner that works in the education industry. One of our clients has refused to pay up an outstanding amount that is past due. The reason is that the owner of the school is not satisfied with the services rendered. Even though all the services were clearly detailed with the option of cancellation, he still doesn't want to pay up. We delivered the services as outlined in the contract.

The disputed amount is $11,250 (total contract is $15,000). He only paid $3,750 of that and has not paid the rest. He claims that one of the partners of the firm was not part of the project; even though, that is clearly not the case. The partner remained part of the firm throughout the entire contract.

With the help of my business attorney, I drafted a letter of demand along with a complete report outlining all the services we provided. He still has not paid up.

So, here's my question. Should I consider going thru arbitration (the contract reads we have to go through arbitration if there's a disagreement)? or should I try sending him another letter of demand? I have also considered other options, such as having a phone conversation with him directly to address his complaints, but this may not oblige him to pay up. Or settling for less than the disputed amount, but with a disparagement clause that would keep his mouth shut should he bad mouth me and my business.

Thank you and I look forward to receiving comments.

Sincerely,

J


Asked on 6/16/16, 3:11 pm

2 Answers from Attorneys
Barry Kaufman The Law Office of Barry W. Kaufman

That's a business decision, not a legal one. Talk to your business lawyer about the pros and cons. Who pays for the arbitration? Since you've sent the guy a letter and he has ignored you, I wouldn't waster my time doing it again.

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Answered on 6/16/16, 3:14 pm
Steven Meyer CPLS, P.A.

Arbitration is very expensive, and therefore is not a good way to resolve many disputes.

I would suggest suing them in County Court. They may file a motion to transfer your case to arbitration, but they choose to waive that clause and just defend the lawsuit in court. It will probably be more cost effective for you to resolve the dispute in court rather than in arbitration.

We'd be happy to discuss the situation with you.

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Answered on 6/17/16, 1:11 pm


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