Legal Question in Credit and Debt Law in Virginia
Warrant in Debt (Civil Claim for Money)
I have been served with a Warrant in Debt (Civil Claim for Money) for ''Unpaid Employee Loan'' in the amount of $900.00 plus $38.00 court cost. 2/28/2002 I was ''loaned'' $900.00 because I was left off of the payroll by my boss (this was the first of three times that I was ''left off'' the payroll). 3/15/2002 I cashed my paycheck, issued by payroll company, and handed my boss an envelope with nine $100.00 bills. He looked in the envelope and acknowledged it. I did not get a receipt. He put it in his brief case to take to his office. I voluntarily resigned from the company 6/30/2004. At no time while I was employed, or upon departure from the company, was the $900.00 brought up as being an outstanding loan. I was never contacted by the x-boss until Feb 2005 when a letter dated 12/20/04 was forwarded to me from my old mailing address. Historically, bookkeeping for the office was in chaos. At least twice I had to contact clients to reissue checks they had written to the company because he had ''lost'' them.
Am I liabel for this money? What is the statute of limitations for collection? How do I defend myself?
Does X-Boss's acknowledgment become a verbal agreement?
1 Answer from Attorneys
Re: Warrant in Debt (Civil Claim for Money)
As usually happens with these types of questions, the issue is not what the law says, but what you can prove.
If the court believes your version of events, then of course you are not liable. The problem is not with the law, but with who the court will believe.
If the company loaned you money, and you paid them back, then the loan is extinguished and does not exist legally. There is nothing more to discuss. It is not really a question of having a defense to their claim. Their claim is extinguished -- non-existent, a nullity.
One of the things a plaintiff must prove is not only a breach of a duty but also that they have lost money. Here, the plaintiff has not lost any money, because they were paid back.
The boss' verbal acknowledgement is not a verbal agreement because it is not a new topic. You were closing out and ending the loan. He did not agree to something new.
My advice would be the following: On the initial return date it will be scheduled for trial (unless you fail to show up, and lose by default). DO NOT ask for a bill of particulars and DO NOT suggest giving an answer. They may ask for an answer, but if you can avoid it, good.
Then on the day of trial, they will probably send some low-level bookkeeper. You will say you paid the ex-boss. Their witness will only be able to say "I don't know." Your testimony of what happened beats "I don't know" any day. This often happens with companies. Their witness cannot refute the testimony for lack of knowledge. They often send the wrong person who cannot say with certainty that what you are testifying to did not actually happen that way.
The statute of limitations on a verbal agreement is 3 years. Because they have not been specific as to what happened, you should wait until the day of trial to bring up the statute of limitations. (Mention it in your answer if you are required to file one.)
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