lost club funds

In california, A parent in charge of a school fundraiser admitted they misplaced or lost over $1500. This person admitted they couldn't find funds and would repay in installments. An agreement was signed a few months ago. One payment was received. Now they don't want to pay, they want money refunded and are claiming emotional stress. The parent club is considering just dropping the issue afraid of being sued personally by this individual. Is it possible to be sued? The debt was going to be taken to small claims. Should we just forget it. How can we protect ourselves from being sued even if the debt is forgiven?

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by ssn:
In california, A parent in charge of a school fundraiser admitted they misplaced or lost over $1500. This person admitted they couldn't find funds and would repay in installments. An agreement was signed a few months ago. One payment was received. Now they don't want to pay, they want money refunded and are claiming emotional stress. The parent club is considering just dropping the issue afraid of being sued personally by this individual. Is it possible to be sued? The debt was going to be taken to small claims. Should we just forget it. How can we protect ourselves from being sued even if the debt is forgiven? <HR></BLOCKQUOTE>

My response:

It's really unfortunate that this person is feeling "stress", but it's stress brought on by her own negligence in losing the money.

Anyone can sue, and there's no stopping a person from doing so. The better question is, "will she win?" She has no viable, winable, cause of action against the club, and this is something the club should not ignore or shy away from.

The money was not hers, and she had a duty to safeguard those funds. Sure, anyone in her position would feel stress - - when you're faced with paying $1,500.00 back due to you're own negligence, who wouldn't feel the stress?

I hope the single payment was made by check, and that you kept a copy of that check. That check stands as evidence of an acknowledgment of her negligence. No one was holding a gun to her head, or twisting her arm, when that check was handed over to the club.

Inform her that should she bring a lawsuit, that the same will require a change in the position of the club, requiring the club to report the matter as a potential theft, and for investigation to determine if criminal action should be taken. Also, that it is the club's immediate intent to file an action in Small Claims court to obtain an Order of Judgment against her, if payment IN FULL is not received within 30 days.

That kind of money, and its loss to a club, is not to be taken lightly. Remember, she was given, and accepted, the responsibility to hold those funds and to use reasonable care to protect those funds from loss. She breached that promise and her duty of reasonable care.

You gotta give her credit though. She's going on "the attack" and trying to scare the club, when it was her negligence that caused this problem in the first place.

Go on the offensive and don't be taken for a ride. She has no viable cause of action.

IAAL



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Thanks for the reply. It is unfortunate, but I belive her (good guess at the gender) "attack" tactic is working. The parent club is going to contact a lawyer and discuss what legal action to take. We do have signed documents by this person including the check.

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by ssn:
Thanks for the reply. It is unfortunate, but I belive her (good guess at the gender) "attack" tactic is working. The parent club is going to contact a lawyer and discuss what legal action to take. We do have signed documents by this person including the check. <HR></BLOCKQUOTE>

She certaining has 'balls' and I would love to know what her lawsuit would contain. Suing for stress caused by being told to pay money back that I lost !!! You also have to think that maybe, this was her plan all along.. maybe the money was never misplaced at all..

Anyway, I personally always suggest a letter first than spending money with an attorney. Write to her and inform her that she is to pay the full amount back in x days or you will be filing legal action against her AND pressing charges via the police. Forget what she does and stick to your own plan. When the x days are up, have an attorney file your claim and report the incident to the police.

Bottom line.. you gave her every chance to sort this out nicely.. she has thrown that back in your clubs face and threatened the club with they even think about pursuing it..




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Psst.. I am not an attorney, and even if I was, I would not tell you. What I am giving you is not legal advice in anyway. For proper legal advice, retain a person who openly admits they are an attorney.

as a board member I accept resonsiblity for my decisions. I would be willing to confront this person in court if they sued.

However, I would have to spend my own money, and other board members would too, to prove we are right. The amount owed to the school parent club is $1500. I belive it I would spend alot more than this to prove I caused to emotional distress or whatever this person dicides to sue for.

Funds are raised by the club to support the school children to buy things that tax money can't. If the parent club used this money to defend the club or board members it would be unfair to the kids. I know this individual didn't take these factors into consideration when they decided to "misplace" the funds.
This individual received a letter requesting full payment. In short, their response was not paying, no responsibility, suffering emtional distress by rumors, etc.
What would be the best way to let this individual know we don't condone their actions, yet not seek criminal action?

as a board member I accept resonsiblity for my decisions. I would be willing to confront this person in court if they sued.

However, I would have to spend my own money, and other board members would too, to prove we are right. The amount owed to the school parent club is $1500. I belive it I would spend alot more than this to prove I caused to emotional distress or whatever this person dicides to sue for.

Funds are raised by the club to support the school children to buy things that tax money can't. If the parent club used this money to defend the club or board members it would be unfair to the kids. I know this individual didn't take these factors into consideration when they decided to "misplace" the funds.
This individual received a letter requesting full payment. In short, their response was not paying, no responsibility, suffering emtional distress by rumors, etc.
What would be the best way to let this individual know we don't condone their actions, yet not seek criminal action?

My response:

I have already suggested to you, in my first post, what to do, and to inform her that:

". . . it is the club's immediate intent to file an action in Small Claims court to obtain an Order of Judgment against her."

You have to understand something: it is a foregone conclusion that she is going to sue the club, either by way of her own Complaint, or by way of Cross-Complaint against the club when the club sues her. So, get ready for it.

The idea, then, is to go on the offense, and get what is due to the club.

IAAL

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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."