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Contract dispute - paid twice for one month

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C

cobalt60

Guest
What is the name of your state? Arizona

My wife’s former employer is suing my wife in civil court to recover money from a pay period that he claims she was paid twice for. My wife started working for him in August 2000. She worked under that first contract until the end of January 2002. She began working under a new contract February 2002 until she quit in September 2002. She was served with the summons on October 2, 2004. The first contract was straight salary. The second contract was to be commission based on her production for the previous month. So her February production would be paid in March. She received her last paycheck in October 2002 for her production in September 2002.

The suit contends that she was paid at the end of January 2002 for her work under the first contract. It alleges that she was also paid for January production in February under the second contract. He says that she should have received her first paycheck in March 2002 for February 2002 production. He alleges that she knew or should have known that she was being paid twice for the same work. He is asking for the January payment under the first contract (he says he should ask for the overpayment from the second contract, but he is willing to accept the January payment from the first contract). He also wants 10% annual interest and reasonable attorney fees. The limit in civil court appears to be $10,000, so he will hit that limit.

One point to note is that her boss had both a business manager (his title was CEO of the LLC in which my wife’s boss was a partner) and the LLC’s accountant handling the money issues for him. There was some controversy when they switched from old contract to the new one in early 2002 (I don't know the details), but my wife thought they had worked that out. My wife said she assumed that everything was worked out because her boss had two people directing payment to her based on consultation with her boss.

We have hired an attorney to handle this, but I am curious to know others’ thoughts on this. One, I don’t see how he can get interest on this when she didn’t know that the problem existed until he called her up to tell her he was suing her - my wife is a great clinician, but lousy on the business side, just like her boss. And how long could he wait before suing her? Could he wait ten years and ask for 100+% interest? What obligation does my wife have to tell he boss that she got paid too much (especially if she had no clue)?

Until she can reconstruct her pay stubs for the entire period she worked for him (unfortunately, she doesn’t have the pay stubs for the first contract), she doesn’t know if they allegations are true. She has no problem returning what she was overpaid, but we both are angry that he can wait until more than two and a half years after the period in question to attempt to recover the money. Any ideas?

Thanks!
 
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