Legal Question in Business Law in Illinois

arbitration on mutual contract breach

IL co. sold our assets to a Oregon co. This included receivables

that were to be collected & paid back to us using best efforts. In 6

months, accounts have been contacted one/two times. Company

claims that they can't collect & we are SOL. We have considered

arbitration. Meanwhile, a receivable was wired into our acc�t (that

the purchaser wants). We have held onto this receivable, insisting

that the receivable would be forwarded if the open receivables

were returned. As they owe us on these receivables (paid over two

years), but have done nothing to collect, they are now trying to

offset what they owe us by writing off the debt. They are

threatening to take us to arbitration (both corporation & me

personally) unless we return the receivable. We have said we

would be glad to return it, in return for all open receivables to be

returned back to us. They agreed. a copy of the open receivables

was requested to confirm & after three requests never came. They

now say they will file for arbitration & reneged on the agreement.

how does this process work, how can I protect myself, & how hard

is it for either one of us to collect from the other with a judgment?


Asked on 9/07/03, 12:16 am

1 Answer from Attorneys
John Pembroke John J. Pembroke & Associates LLC

Re: arbitration on mutual contract breach

I hope you used an attorney when you sold your corporation's business assets. There should be a written agreement governing the ownership of the assets, and a dispute resolution mechanism. I cannot answer your questions without looking at the agreement, particularly about whether arbitration is required and how it would work. You should consult a lawyer with your situation.

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Answered on 9/08/03, 10:31 am


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