Holding Job Material In Shop Hostage for Payment Not Owed

[GreenGreen]

we have a contract with a major company in southern louisiana and subed out part of the work. there was no written contract with this sub, but we (our company) agreed on 40,000 for work completed. when work completed the sub - said he wanted 50,000. Paid sub 40,000 - now we have an additional contract with this major company and were going to use sub #1. our company had some material for job #2 delivered to sub #1 shop. before all material arrived, we recieved a quote from another comany 15,000 cheeper. we told sub # 1 that we would still give him the job, but forget about the additional monies he believed owed for job #1. now sub # 1 said he wants his (belived) monies owed from job #1 10,000 or he would hold the materials our company paid for ransom for the payment. thinking this person was a friend, we stored a 5,000 machine in his shop - he says he will not give machine back or partial materials delivered to his shop for job #2 to us unless we pay 10,000. question - can he hold our material and machine hostage in his shop - we have receipts buying the material and machine stored at his shop - he has no receipts - no written contract. as for a verbal contract how can he say more money is owed for job # 1 when me and my partener both heard him agreed to 40,00 also how can we get these items back asap - please answer.

 

[JETX]

Based solely on the information in your post, the subcontractor CANNOT hold unrelated materials and equipment in an attempt to force payment of an unrelated invoice. I would suggest that you advise him that you are considering contacting the local police department to file a complaint for 'conversion' or theft. (Conversion: the crime or tort of interfering with the ownership of another's movable or personal property without authorization or justification (as a lien) and esp. of depriving the owner of use and possession).

If he refuses to return your property, you can consider filing civil charges against him for the value of your 'damages' (loss), plus costs and fees.


As for the $10,000 'extras', make him return the property before you agree to discuss ANY additional payments over the agreed amount. Then, once you have your property back, tell him to sue you.

Finally, why, why, are you doing work of this value without some written agreements???? I hope that you have learned from this lesson.