Legal Question in Business Law in Michigan

Client holding payment for services rendered.

My snow removal company provided a service for a customer & caused damage to a garage door at the time. The garage door has been replaced & we are in the process of painting it. It has taken a long period of time because we must work around the home owner's schedule since he wants to be present during all work. Does the customer have the legal right to hold payment for the service rendered until the damage is repaired? The payment is 3 months over-due. How much per 30 days can my company leagally charge as a late payment service charge. We would like to charge 10% of the balance due (including previous late-payment charges).


Asked on 6/03/99, 10:28 pm

1 Answer from Attorneys
Patrick Tracy Patrick J. Tracy, Esq, P.E.,

Re: Client holding payment for services rendered.

Absent agreement to charge interest on an unpaid balance, you can attempt to charge interest, however there is no legal basis to do so. This is an example of where a good contract would dictate the terms and conditions of service. Your client is holding money, because this is the only leverage that he has on you to replace his door.

Sorry I can't tell you what you're looking for.

Patrick Tracy

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Answered on 6/07/99, 4:57 pm


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