Legal Question in Business Law in Texas

negotiable instruments and payment of services rendered

Customer had insurance claim, we contracted the repairs. Customer's Mortgage Holder acted as trustee over the insurance claims disbursement to insure the repairs were satisfactory and that repairs were done to their mortgaged collateral. Customer's Mortgage holder then sent the funds payable to the customer and the contractor(us), customer then cashed said checks and kept the funds without paying contractor. An additional amount was obtained from the insurance company for additional work done on the property by contractor and these funds were remitted to the mortgage holder who then indorsed the check and sent it to the customer who then cashed said check and kept the funds.


Asked on 3/05/03, 1:10 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: negotiable instruments and payment of services rendered

If you were named as co-payee on the checks, then you can force the issue with the insurance company and through them, the bank that paid on a forged endorsement. If you were not named on the checks, then your only recourse is to sue the homeowner.

I'm also assuming that you didn't follow all the necessary steps for placing an M&M lien on the homestead.

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Answered on 3/05/03, 1:44 pm


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