Legal Question in Business Law in New Jersey

I have a customer that had repairs done in November 2009. It was a repair that was supposed to be covered in half by the customers warranty company. I recieved verbal confirmation for the repair, but after the repair was completed, the warranty company went out of business, thus never paying the 925.00 owed to me. Is the customer liable for the outstanding balance because their warranty company went out? I am currently in possesion of the repaired vehicle.

Thanks

Chris Blundell


Asked on 1/19/10, 7:17 am

1 Answer from Attorneys
Randall Brett Law Office of Randall P. Brett

Who was your agreement to repair the vehicle with? If it was with the customer - and the warranty company had a separate agreement with the customer to pay for all authorized repairs - you can look to the customer to pay you. He then becomes a creditor of the warranty company and has to collect their share of the repair costs from them. However, if you had a contract with the warranty company to provide repair services for its customers, the answer is less clear. In such a case, the terms of your agreement with the warranty company would control. You should talk with an attorney as holding on to the vehicle may not be prudent.

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Answered on 1/24/10, 11:10 am


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