Independent Contractors ripped off for work completed

[stinastina]

What is the name of your state (only U.S. law)? Utah

I belong to a group of several persons who work as ICs. These ICs signed up with company FC to do a project. A contract was signed and reports were submitted, positive feedback given in writing and an invoice from each IC was submitted to FC. Several months later and no payment has been received.

After we did a little digging, there are numerous complaints about FC and non-payment for the past 3 years. FC did not renew its registration with the SOS last year. Reports have been sent to the UTah AG with no results. The BBB won't deal with complaints because it is not a consumer complaint. Because we are ICs, it is not a labor issue.

How do we proceed to get payment ? Most of us are spread out all over the country. Is what the former owner doing criminal in any way ? He continues to solicit ICs for this project and new people turn up every day who have been ripped off. Is there any way to stop this guy ?

Thank you for any insight you can offer.

 

[OHRoadwarrior]

Your recourse is to sue them, obtain a judgment, then move to attach property or equipment to satisfy the debt.

 

[stinastina]

Your recourse is to sue them, obtain a judgment, then move to attach property or equipment to satisfy the debt.

Thank you, for pointing us in the right direction. Each IC is owed about $300. Can we all file one suit ? Can the owner be held personally liable since FC is no longer incorporated ? I assume we have to file against the owner in his county and have him served but none of us live near him.

 

[swalsh411]

This is not going to be worth it over $300.

 

[LdiJ]

This is not going to be worth it over $300.

If they were all local and could file small claims suits it might be worth it, but not being local, it really isn't.

 

[stinastina]

At this point it would be worth it to stop him from continuing to rip people off.

 

[latigo]

Thank you, for pointing us in the right direction. Each IC is owed about $300. Can we all file one suit ? Can the owner be held personally liable since FC is no longer incorporated ? I assume we have to file against the owner in his county and have him served but none of us live near him.

“Pointing us in the right direction?

You had to go all to this trouble in order to learn that these issues are simply affairs between debtor and creditor that can be adjudicated in a civil court of law?

(Some evening while you are working on your acronyms and in or about SLC step outside and face the setting sun. Your nose will be pointed in the direction of the Great Salt Lake Desert. Do an about-face and it will be pointed toward the Wasatch Range.)

Is “FC” criminally culpable?

Generally speaking owing money is not a crime in Utah. Soliciting and accepting goods, labor or services knowing full well that they won't be paid for is a crime.
____________________________

File one lawsuit for all of the creditors?

Aside from all of the difficulties in the management of a class action lawsuit and the staggering expense involved, I doubt that there would be such a commonality of law and facts between the various proposed claimants as to satisfy Rule 23 of the Utah Rules of Procedure and this obtain class action certification.

Also the mere fact that your “FC” has failed/refused to pay its individual creditors would not render appropriate injunctive or declaratory relief. A condition required under Rule 23 (b)(2).
____________________________

Sue the individual owner of the corporation?

No, you cannot sue an individual on the mere pretense that that the individual is “believed” to be the “owner” or former “owner” of a defunct corporation.

(Actually corporations are not individually owned.)

I suppose if an individual or individuals incurred debt in the name of a corporation that had been “defrocked” it would have thus lost its “legal entity” status and the debts purportedly incurred in its name would be considered individual and not corporate debts.

And, of course even if the corporate entity were in good standing, using it as an alter ego or front to conduct a sole proprietorship could very well subject the acting “proprietor(s)” to personal liability.

But these are legalisms much to complicated and costly to be of practical concern here. I only mention them because you’ve asked and to avoid you being pointed in an unfavorable direction.

(When in doubt always follow the Yellow Brick Road.)

 

[stinastina]

“Pointing us in the right direction?

You had to go all to this trouble in order to learn that these issues are simply affairs between debtor and creditor that can be adjudicated in a civil court of law?

(Some evening while you are working on your acronyms and in or about SLC step outside and face the setting sun. Your nose will be pointed in the direction of the Great Salt Lake Desert. Do an about-face and it will be pointed toward the Wasatch Range.)

Is “FC” criminally culpable?

Generally speaking owing money is not a crime in Utah. Soliciting and accepting goods, labor or services knowing full well that they won't be paid for is a crime.
____________________________

File one lawsuit for all of the creditors?

Aside from all of the difficulties in the management of a class action lawsuit and the staggering expense involved, I doubt that there would be such a commonality of law and facts between the various proposed claimants as to satisfy Rule 23 of the Utah Rules of Procedure and this obtain class action certification.

Also the mere fact that your “FC” has failed/refused to pay its individual creditors would not render appropriate injunctive or declaratory relief. A condition required under Rule 23 (b)(2).
____________________________

Sue the individual owner of the corporation?

No, you cannot sue an individual on the mere pretense that that the individual is “believed” to be the “owner” or former “owner” of a defunct corporation.

(Actually corporations are not individually owned.)

I suppose if an individual or individuals incurred debt in the name of a corporation that had been “defrocked” it would have thus lost its “legal entity” status and the debts purportedly incurred in its name would be considered individual and not corporate debts.

And, of course even if the corporate entity were in good standing, using it as an alter ego or front to conduct a sole proprietorship could very well subject the acting “proprietor(s)” to personal liability.

But these are legalisms much to complicated and costly to be of practical concern here. I only mention them because you’ve asked and to avoid you being pointed in an unfavorable direction.

(When in doubt always follow the Yellow Brick Road.)

I don't live in Utah. FC was incorporated in Utah and and the registration lapsed 1/2011 and has never been renewed. The fact that FC still sends out emails today soliciting contractors to complete the same project that my ICs have not been paid for sounds like your description of a crime. Can you tell me this crime is called (i.e., fraud ?).