December 9, 2010

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Question:

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HI Mr Ken

    I have a situation I would like your advice on. I installed a CCTV system in a lawyers office that I had much trouble with. He refused to pay unless I upgraded his cameras to more expensive cameras, then once done he tried to give me a check for a lesser amount with "paid in full" written in the memo line. I did finally get paid but he made me work double for it.

    Now as crazy as it sounds we entered into another contract to install a CCTV system at his home. It included a 4 channel system, TV cables, Surround sound cables and mounting 5 Big screen tvs for him for under 3200. Later he talked me into upgrading the DVR to a 9 Channel and also mounting the surround sound speakers that he would purchase. This was edited in on the contract. I finally got a 50% down check and finished installing everything except the speakers because he never got around to buying a set. He then went out of town for awhile and now since he is back my book-keeper called to try to get the check and offered to schedule to return for the speakers to be installed but he would not schedule. Then I receive a letter from his office a 1 1/2 months ago saying he has 1 camera that went out and he needs service. Since then I have called his office and left many messages with his secretaries and still have not received a call for service. It now appears as though he is trying to rip me off for the other 50% again as before. He is a lawyer with PHDs etc and claims all the other lawyers in town learn from him..I was told by some of his employees he does this to all of his vendors and gets away with it because he is a lawyer.

    Should I send a light letter requesting payment and/or send the Final Demand letter?

How would you handle this one?

GM

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Answer:

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    First of all, when are you available to install a bunch of equipment in my office and house.  The 50% discount sounds pretty good.  Lot's of lawyers learn from me too; maybe I can get away with a 100% discount.

    Second, maybe you can teach this dead beat lawyer a lesson.  Still might not collect but I promise you you'll feel better about it.

    When you state that you entered into a "contract" that really tells me nothing.  What are the contract terms?  What payment schedule is in place and what default and collection provisions come into play?  How about a Completion Certificate- did you get one signed on the way out?  Service on the CCTV equipment in the office ?  I don't see what warranty is provided and you haven't mentioned a service contract.

    If you told me that you used one of my contracts, either Sales or the CCTV Sales, and the Audio - Video for the house job, then I'd know what rights you have and what remedies you could pursue.  If you insist on doing work for a hand shake or a "contract" written or should be written on toilet paper, then you know what you can do with it.

    Yes, you should send a final letter and demand.  Then you should sue the bastard.  Think the hot shot wants to spend his billable time in court?  Think he wants to attend a deposition for half a morning across town answering questions about this matter and why he didn't pay you?  He won't.  He will brag about how he will drag you around in court, but he will tire quickly. 

    Lawyers, believe it or not, are held to a higher standard than the common folk, and you could and should file a complaint with the local bar association or grievance committee.  Your lawyer should be able to point you in the right direction.  It may be that no disciplinary action will be taken because it is viewed as a purely civil dispute, but you might get lucky and instigate an investigation.  Maybe this won't be the first complaint. 

    More than one of my clients would not hesitate parking his truck in front of the guy's office with a sign that he owes him money.  But you didn't hear that from me.  Make sure you don't start a commotion or breach of the peace. 

    Or, forget about it; write it off.  Get proper contracts and follow the payment schedule more closely.  Finally, leave a problem customer to someone else.  Hopefully you have better things to do.