Consulting agreement terminated -- I want my refund!

[epikadvice]

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

I entered into a business consulting agreement with a company in Florida.

The consulting service started on June 29th and the consultant came from Florida to Texas for 2 days in July 2015. From July until September 16, he was consulting via the Internet and phone. Our last contact was September 16, 2015. I haven't heard from him since then. So on October 27th, I contacted the company to cancel my consulting agreement with them.

The verbiage in the contract reads: "After at least 3 months of consulting, either party may cancel this consulting Agreement. The cost of $22,750.00 will be prorated based upon the length of consulting services provided, round up to the nearest whole month. For example, if consulting services are retained for 6 months and 1 week, the Client's responsible portion will be 7 months and 5 months will be reimbursed. Repayment will be within thirty days."

Consulting services were provided from June 29 to Septmber 16, or approximately 2.5 months, which rounds up to 3 months as per the agreement. I am seeking reimbursement for 9 months of consulting, or $17,062.50.

The company refuses and wants to refund 17 weeks worth of consulting, from June 29 to October 27. However, I received no consulting services or advice for the 6 week period from September 16 to October 27. They also want me to deduct travel expenses from the refund. The pertinent clause in the contract makes no mention of travel expense refunds.

Should this situation needs to be resolved in court, I believe:

1) I can file the case in Texas due to the long-arm statue: "(1) contracts by mail or otherwise with a Texas resident and either party is to perform the contract in whole or in part in this state;",

2) I can make service upon the Secretary of State as process agent: "(b) The secretary of state is an agent for service of process on a nonresident who engages in business in this state, but does not maintain a regular place of business in this state or a designated agent for service of process, in any proceeding that arises out of the business done in this state and to which the nonresident is a party.",

3) Florida courts probably won't grant a request to move the venue to Florida because of Texas' long-arm statute,

4) Should the company/consultant want to go to court, they'd have to do so in Texas.

Are these assumptions correct?

Can I add the filing fees as well as the Secretary of State fees to the amount I'm seeking as reimbursement?

Thanks.

 

[quincy]

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

I entered into a business consulting agreement with a company in Florida.

The consulting service started on June 29th and the consultant came from Florida to Texas for 2 days in July 2015. From July until September 16, he was consulting via the Internet and phone. Our last contact was September 16, 2015. I haven't heard from him since then. So on October 27th, I contacted the company to cancel my consulting agreement with them.

The verbiage in the contract reads: "After at least 3 months of consulting, either party may cancel this consulting Agreement. The cost of $22,750.00 will be prorated based upon the length of consulting services provided, round up to the nearest whole month. For example, if consulting services are retained for 6 months and 1 week, the Client's responsible portion will be 7 months and 5 months will be reimbursed. Repayment will be within thirty days."

Consulting services were provided from June 29 to Septmber 16, or approximately 2.5 months, which rounds up to 3 months as per the agreement. I am seeking reimbursement for 9 months of consulting, or $17,062.50.

The company refuses and wants to refund 17 weeks worth of consulting, from June 29 to October 27. However, I received no consulting services or advice for the 6 week period from September 16 to October 27. They also want me to deduct travel expenses from the refund. The pertinent clause in the contract makes no mention of travel expense refunds.

Should this situation needs to be resolved in court, I believe:

1) I can file the case in Texas due to the long-arm statue: "(1) contracts by mail or otherwise with a Texas resident and either party is to perform the contract in whole or in part in this state;",

2) I can make service upon the Secretary of State as process agent: "(b) The secretary of state is an agent for service of process on a nonresident who engages in business in this state, but does not maintain a regular place of business in this state or a designated agent for service of process, in any proceeding that arises out of the business done in this state and to which the nonresident is a party.",

3) Florida courts probably won't grant a request to move the venue to Florida because of Texas' long-arm statute,

4) Should the company/consultant want to go to court, they'd have to do so in Texas.

Are these assumptions correct?

Can I add the filing fees as well as the Secretary of State fees to the amount I'm seeking as reimbursement?

Thanks.

I suggest you have your contract personally reviewed by a professional in your area, to make sure you are on solid legal ground before filing suit.

On a quick glance of your post, I think you have a good argument for filing a suit against the business in Texas - but jurisdiction can always be argued (and probably will be).

I'll check out Florida and Texas in more depth when I have the chance, unless latigo or some other member of the forum wanders along to give you a more complete answer before I can.

 

[latigo]

I suggest you have your contract personally reviewed by a professional in your area, to make sure you are on solid legal ground before filing suit.

On a quick glance of your post, I think you have a good argument for filing a suit against the business in Texas - but jurisdiction can always be argued (and probably will be).

I'll check out Florida and Texas in more depth when I have the chance, unless latigo or some other member of the forum wanders along to give you a more complete answer before I can.

(If you meant "wanders" as in "lose one's train of thought", can't find his car keys because he sent them to the cleaners along with his trousers, I'm your man.)

But whatever, let's assume that the OP files in his home state and a Texas court assumes in personam jurisdiction over the non-resident defendant and renders a favorable judgment. That may not result in a final resolution of the question of jurisdiction.

Unless the would-be judgment debtor has assets in Texas there could be a need that the judgment be domesticated and attempt made to enforced it in Florida. Which would open the opportunity for the defendant to challenge that issue in order for the judgement to receive full faith and credit.

And my thought, good or bad, is that it might be more advantageous from the standpoint of the would-be judgment debtor not to challenge jurisdiction in Texas, but do it in Florida. Thinking that if the issue was not fully aired in Texas, a Florida court would be less inclined to grant recognition.

Anyhow, I don't see the future with this dispute boding well for the OP. Not unless he enjoys wandering, that is traveling and enriching lawyers.