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Business deal gone south

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J

jame

Guest
I entered a contract to give my equiptment (truck and trencher) to a fellow irrigation contractor in exchange for his services of providing materials and labor for an irrigation system I had to install. He did not complete the job. I had to finish it after many phone calls asking when he would finish it. The work he did do was very unprfessional (i'll provide details if asked). The equiptment is now in his name, but HE want's to sue ME for breach of contract. In the contract, it stated that "(my company)(My name) will not compete for any irrigation work with (his company)". My company is closed and I work for another Landscaping company that does irrigation. Is this competing since I'm just an employee of this company?
Is he in violation of the contract since he didn't finish the job?

Thanks for any help
James in Florida
 


JETX

Senior Member
Q1) "Is this competing since I'm just an employee of this company?"
A1) Possibly. Are you employed in any way in sales or as a manager?? If so, then he MIGHT have a valid claim.

Q2) "Is he in violation of the contract since he didn't finish the job?"
A2) On the surface, yes. But someone really needs to read the contract in its entirety to see what if any obligations were on either party. For example, you said that your agreement transferred ownership of equipment to him "in exchange for his services of providing materials and labor for an irrigation system". Did he provide ANY materials? If so, that could be compliance. Did he provide ANY labor?? If so, that could be compliance. There doesn't appear to be any requirement that his work be completed, or any extent of required work or even that his work meet any standard.
 
E

Elliotg

Guest
I agree completely with the gentleman from Texas.

You should retain an attorney to at least review the contract.

Just how bad was his work, and how much additional work did you need to do to complete the job. Depending on the facts, and the contract specifics, the other party maybe able to assert that he substantially complied with the contract.

Another factor to consider is who drafted the contract. The courts generally construe ambiguous contract terms against the party which drafted the contract. This would not be applicable if the contract terms are clear.

You should schedule a formal consultation with a lawyer. A good means of obtaining an attorney referral is by contacting your State's bar association or your local county bar association. They probably have a web site and charge a nominal fee for the referral.

Good Luck, Elliot Jay Goldstein (Attorney with offices in Tampa and St. Petersburg - Feel free to contact me directly by sending an e-mail via clicking on my profile tab)

The above information is provided as a courtesy, without any consideration and without knowledge of the specific facts. Do not rely on this information. Seek a formal consultation with an attorney.
 
J

jame

Guest
Thanks for the replies guys!
The plot thickens. The guy has now put leins on 2 houses. The first one is on the house which involves the contract work. The second is on a house he WAS going to get the work from but we decided not to because of his performance on the last job. The contract states "(My company) is in no way legally bound by this contract to provide (his company) with future irrigation contracts."
He wants me to pay the profit he would have made from that job. He says that since he started the work there (he installed pipes that go under the driveway before concrete is poured which is done about 6 weeks before the actual system is to be installed. About $100.00 worth of work) it is his job to finish. There was no written contract for that job.
Is it true that since he did the work for me and not the home owner or builder, that he has no right to file leins on the houses?
Could this be used against him if he wants to sue me for breach of contract?

Here is what he thinks he is entitlled to:
-My truck and trencher (which he already has for payment of the irrigation job as per contract)
-Payment for the job. $4,875.00 (even though he already has my truck and trencher)
-$2550.00 in lost profit from the job he thought he would get.

I think he's out of touch with reality myself.

Thanks again for any help,
James,
 

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