Legal Question in Credit and Debt Law in Louisiana
Retrieving unpaid property
1 month ago, I sold 6 computer systems to a local biz. They paid a deposit up front. I was to be paid the tax and labor for setup at delivery. During setup, the old server wasn't working, they asked for me to get a new one asap. I had it in overnight (3.5 weeks ago). I continued to perform labor there at their direction for the remainder of the week. At the beginning of the next week, I submitted an invoice for the amount owed to date. No payment yet. Yesterday, I was told that it should have been run thru their out of state corp. so they wouldn't pay sales tax. I, knowing this to be just plain wrong, checked with dept. of tax. -- I would not be liable because this was an occasional sale. They would be eventually. I resubmitted an invoice without sales tax. I told them this morning that I needed either a check or equipment back. They said I could have the equip. back. They would not allow me to touch any of it but said they would get their technician to disconnect them ''whenever''. I'm obviously dealing with an unscrupulous business (I believe the FBI and IRS would be quite interested in them). We're talking over $4000 that I'm out. Contact the DA, the police? Is there anyway to get my equipment back quickly (or pref. the money)?
1 Answer from Attorneys
Re: Retrieving unpaid property
Unfortunately, I do not have any quick solutions for you. "Self-help" in this State (i.e., physically repossessing merchandise from a non-paying customer yourself) is still effectively a "no-no". The DA and the police may not want to get involved because not paying a bill is not a criminal offense (although it can seem that way).
I can write a legal demand letter to them for you, seeking full payment of your bill but cannot guarantee that such a letter will get you your money in a hurry (or ever). Under the "open accounts" statute, this customer may also be liable to you for a "statutory attorney's fee" penalty (c. 25% of prinicpal and interest), court costs and legal interest in addition to the amount of your unpaid bill--IF you follow the law accurately.
Did this customer sign a written contract or work order for all of this work you did? (i.e., agreeing to pay for your labor, etc.) [If not, you should strongly consider getting all your customers to do so from now on]. Is this customer a valid LA corporation (have you checked with the secretary of state's office) or an individual/partnership pretending to be a corporation?
Getting your money may be tough and probably will not happen quickly [may be time to consider "cash up front" from customers or some type of advance deposit at least equal to the hardware your selling]. However, persevere--you may ultimately get paid if you follow the rules.
If you need an attorney to help, collection of unpaid bills is what I do. My services are on a contingency fee basis--I only get a fee based on what is recovered; no recovery, no fee. The only out-of-pocket expenses to the client are that the client pays costs to work the case (i.e., postage, copies, long distance, parking at court, etc., court costs (if necessary)).
Good Luck.
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