Legal Question in Business Law in Texas

Commission held against inventory

I am a manufactures Rep in Georgia. One of the Texas based companies I represent decided to terminate our agreement and go with a larger distributor. I returned over $300,000 worth of inventory and continued to represent them through the 30 day notice period. In attempting to reconcile the inventory the company said they found $10,000 of shortages. Although I will have returned well over the $10,000 worth of additional inventory. The company refuses to give me credit those items stating that those items were not assigned to me. (Proof their inventory list is in error).The company refuses to issue my final commission check of $9,000.00 and they have now broken off all communication from the president down. I am currently holding inventory from my last case until they agree credit me for all the inventory I will have returned and issue my final check.

What are my options? Can I sue them in Georgia or must I sue them in Texas? Should I wait for them to sue me?


Asked on 4/30/03, 3:56 pm

5 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Commission held against inventory

Your options are either attempt to collect, or not.

You can sue them in either Georgia, if they've had sufficient contacts with the state, or sue them in Texas.

You can wait. If the inventory you're holding is less than the $9,000 they owe you, they may not take any action. It's really your call to wait or move forward. Just don't forget that there are time limits within which you can bring suit.

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Answered on 4/30/03, 4:48 pm
Basil Hoyl Law office of Basil Hoyl

Re: Commission held against inventory

Yes, what Peter said. Before it goes to suit, you might also consider mediation with the company. I am not a mediator, but it is a growing industry.

http://www.reasonable-doubt.com

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Answered on 4/30/03, 5:44 pm
Lawrence Maun Lawrence J. Maun, P.C.

Re: Commission held against inventory

If a lawsuit is brought, you want to be the one to bring it. If the Texas company sues you they most certainly will initiate it in Texas. Better for you to have a friendly forum in Georgia. Sue them first in Georgia if thins can't be worked out. By doing this you will force them to at least come to Georgia to litigate the issue of jurisdiction. However, they apparently were storing inventory in Georgia so contacts may be sufficient to assure Georgia jurisdiction. Talk to a Georgia lawyer. Larry Maun 713.266.2560

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Answered on 4/30/03, 5:57 pm

Re: Commission held against inventory

Write them a letter and explain that they owe you the 9000 and send it to your contact by certified mail/return receipt.

Adding to the Peter's and Basil's comments:

You may be able to sue them in Georgia or Texas. It depends whether or not they have established minimum/sufficient contacts with Georgia, otherwise speak with a Texas attorney.

An attorney can advise about the time limits Peter spoke of. Before meeting with one, take a few moments to put together all of your documents relating to the agreement that you had with the company for the attorney to review.

With regards to mediation:

A path of mediation is always advisable. You may check for organizations that mediate for free. In Houston, there is the Dispute Resolution Center -- www.co.harris.tx.us/DRC/

Their requirements are (1) the lawsuit is in Harris county (2) no more than 3 parties to the suit (3) limit on the amount in controversy.

Keeping costs as low as possible may help in the overall process of mediation.

A valuable resource is the Texas Sec of State - www.sos.state.tx.us/ The corporations section can provide you with additional information.

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Answered on 4/30/03, 6:13 pm
Charles W. Field Charles W. Field, Attorney at Law

Re: Commission held against inventory

I have read the replies from the TX lawyers.

Seems to me that you should sue in GA, if they have an office here.

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Answered on 5/05/03, 5:31 pm


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