• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Extortion to pay a bill without seeing the bill

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

StuckinSA

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

The short version:
Water extraction company verbally quotes me a price. Then charges me thousands more than quoted price. Extorts me to pay their fee without seeing a bill first so I could close on selling my home. I want to sue. Feel free to jump to the questions below or read the long version for more info.

The long version:
This year I was selling my house. I was supposed to close on the sale on a Friday. The day before (Thursday at 3PM), I visited the house for one final walk-through by myself. As I pulled up I noticed the foundation was wet even though it wasn't raining. The sinking feeling in my gut was confirmed as I opened the door to a swamp. The entire house except for the kitchen and garage had been flooded!

Turns out the flexible hose that comes from the wall spigot to the underside of the toilet had broken at the toilet end and was shooting water out full blast! I quickly shut it off. There's no telling how long the water had been going like this. The last time I had visited the home was Sunday evening, so any time between then and Thursday.

Regardless, I called my realtor and she notified the other realtor who in turn notified the buyers. I then called my insurance company. They told me to call a company (not sure if I'm allowed to identify them here or not) that's nationally known. I called them up on their 1-800 number on their webpage. That was answered by a kind woman who sounded a bit older. She was reassuring and took my information and told me that the local guy who'd be handling my case would call me soon.

Less than 30 minutes later the guy called. His name was Manuel. He said they'd be there soon. He told me that they would have to collect the fee of the amount equal to my deductible (in my case, $1700) up front before starting any work. I went to my bank branch just down the street and got a cashier's check for that amount. I was back well before Manuel arrived at 7PM.

When Manuel did arrive, he had another guy with him. When they came in, they immediately started working. They did not at any time attempt to collect the fee that was discussed before starting to work. They instead focused on sucking the water out and cutting and ripping out the carpet and padding. Keep in mind I had not signed anything or agreed to anything at this time other than I would pay them the $1700 fee.

Meanwhile the buyer's realtor came by and so did the buyers. This was the first time I had met any of them and they were real understanding. They did agree to continue buying the house, luckily for me. All I would have to do is replace the carpet and fix all the baseboards (some replaced, some just dried and painted).

After a few hours (I think 10 or 11pm) Manuel and his coworker were done ripping out every shred of carpet in the house and sucking out as much water as they could. That's when Manuel finally brought out some paper work. He said they were going to put in some air movers and dehumidifiers in the morning and I gave him a key (house was empty already) to do so. I gave him the $1700 fee. There was no further discussion of money at this point.

The next day I had a contractor meet me at the house to discuss the baseboards. Also coming out that day was the appraiser for the insurance company. When I arrived Manuel was already there with his coworker. They had moved in the equipment and it was going full blast to dry out the walls/floorboards. The appraiser came by and measured and inspected everything. At that time the contractor came out and started his estimate. I was then informed by my insurance company that I would only be reimbursed $5000 total as that was the limit of my water damage clause. I always thought this was flood water damage, but no it is ANY water damage has a $5000 limit.

At this time I told Manuel of the limit and I needed him to remove everything because I couldn't afford to pay him anything else as that $5000 would have to go to the carpet/floorboard repairs. In front of the contractor, Manuel said not to worry that it would only be a few hundred dollars more than the $1700 I had already paid him and that it was important to his company to make it "like it never even happened". I agreed to let him continue at this point believing him that it would only be a few hundred dollars more.

Sunday was uneventful. On Monday, I again expressed my concern to Manuel about the cost of all this equipment running because the insurance company wasn't going to pay and he again assured me that it would only be a few hundred dollars more than the $1700 fee I had already paid him. On Tuesday morning he removed all of his equipment and left. So the equipment was there only 4.5 days max.

Over the next few days I worked with the realtors/buyers regarding the carpet. Rather than putting in carpet of my own choosing, I'd let them pick the color of the carpet and we came to a fair agreement (not the cheapest, but not the best) on which carpet would be put in. To do this, I was going to sell them the house without carpet and just give them an allowance at the closing.

One of the things I had to do before I could close on my house was pay the water extraction company to show the title company the house was clear with no possible liens against it. So I called up the company and asked for the final bill. This was the first time I had talked to anybody at the company other than Manuel (or that dispatcher on day one). The lady told me the final bill was $7000!!! I immediately disputed this amount as this was quite a bit more than "a few hundred dollars"! She said regardless, I had to pay it. I refused, saying that it wasn't a fair price. I demanded to see an itemized bill. She refused. I talked to her supervisor with no luck.

At this time, Manuel went back to the house looking for me. The contractor was there repairing the baseboards. He told me that Manuel walked in without knocking or ringing the doorbell as if he owned the place. Contractor told me Manuel harassed him asking for me and threatening me and said that it was all my fault because I involved the insurance company in this (?!?).

I wound up calling the owner of the franchise. I told him I needed a copy of the bill so I could pay it. By this time it was the day before the new closing date and I *had* to pay the bill in full or risk not selling the house. The owner told me that I would get a copy of the bill in a few weeks from his lawyers (Note, the owner/company knew I was selling the house and had to pay them to close). Calmly as always, I asked him why I would be getting the bill from lawyers rather than his company. He said because we threatened to flee the country (wtf?!) and blah blah. I told him, again, calmly, that *I* was the one calling him to pay. I reminded him that this all happened in the short span of 2 weeks and that I will pay them.

He gave me their address. I went to their offices and they refused to give me the bill until I paid. I paid with a credit card in two separate charges of $2000 and $3300. They then had me sign all this paperwork including the billing statement just to get them to give me a paper saying everything was paid in full and in the clear for the title company. I was being extorted in my opinion.

I sold the house the next day. I then went through the bill from the water extraction company with a fine tooth comb. Forget the fact that the charge was quite a bit more than the "few hundred dollars", they flat out over charged me by at least $2400 dollars. These overcharges were primarily from charging me for 6 full days of the gear instead of the actual 4.5 days, for 19 pieces of gear instead of the actual 16, and for water extraction from the garage when there was never any water in the garage.

I contested the charge of $3300 from the credit card company on the basis of overcharges. The extraction company only refunded $500 for the 19 vs 16 portion.

My questions and assumptions:

Should I sue them in small claims court?
If so for how much?
Just the actual remaining disputed amount?
An amount closer to "fair" (1700 plus a few hundred dollars remaining to them) based on their agent's quotes to me? Say, 7000 - 1700 - 300 = Sue them for 5000?

Can I and should I sue them for emotional distress or anything "punitive"? My county has a $10k limit in small claims court. If so, how much?

Can I and should I sue them for more due to the extortion involved? If so, how much?

It's my opinion that by refunding the $500 they've already admitted fault in their billing process in my case. Is that true?

I have yet to discuss any of this with the company. I haven't talked to them since I paid the bill. Do I have to before I can sue them? I really don't want to since they extorted me to pay and had already threatened me with lawyers, but if I have to I will.

Whom do I sue? The entire corporation, the franchise, or the owner of the franchise?What is the name of your state (only U.S. law)?

Some of the papers they had me sign after the fact stated things like the "quoting agent" and such. I only ever talked to Manuel about price. Nobody from the company other than Manuel and his one coworker ever visited my house.

On the main paper I signed (the total bill) I crossed out the "hereby authorize" part before signing it as an indication that I was being extorted. At least in my mind this is what I believe it to mean. If I show a judge the crossed out "hereby authorize" and explain that to him will that prove that I was under duress? It was the only thing I could think of at the time to show that I was being pressured into signing.

Thanks for reading and for any advice you can offer.

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


yyarboro

Junior Member
You need to consult with a lawyer. Don't even think about going into small claims court by yourself. Go to the Yellow Pages and call at least half a dozen. Rehearse carefully what you will say. Make it brief. When you call an office, ask for the lawyer by name. Many times the receptionist will put you through directly or take your number and the lawyer will call you back. Then decide which one, if any, is best for you.
 

Proserpina

Senior Member
Less than 30 minutes later the guy called. His name was Manuel. He said they'd be there soon. He told me that they would have to collect the fee of the amount equal to my deductible (in my case, $1700) up front before starting any work. I went to my bank branch just down the street and got a cashier's check for that amount. I was back well before Manuel arrived at 7PM.
OK.

When Manuel did arrive, he had another guy with him. When they came in, they immediately started working. They did not at any time attempt to collect the fee that was discussed before starting to work. They instead focused on sucking the water out and cutting and ripping out the carpet and padding. Keep in mind I had not signed anything or agreed to anything at this time other than I would pay them the $1700 fee.
Why didn't you ask Manuel about this before you allowed them to start working? That would have been the best time to discuss exactly what you were paying, surely?

After a few hours (I think 10 or 11pm) Manuel and his coworker were done ripping out every shred of carpet in the house and sucking out as much water as they could. That's when Manuel finally brought out some paper work. He said they were going to put in some air movers and dehumidifiers in the morning and I gave him a key (house was empty already) to do so. I gave him the $1700 fee. There was no further discussion of money at this point.
Did you read the paperwork before you handed over the fee?

The next day I had a contractor meet me at the house to discuss the baseboards. Also coming out that day was the appraiser for the insurance company. When I arrived Manuel was already there with his coworker. They had moved in the equipment and it was going full blast to dry out the walls/floorboards. The appraiser came by and measured and inspected everything. At that time the contractor came out and started his estimate. I was then informed by my insurance company that I would only be reimbursed $5000 total as that was the limit of my water damage clause. I always thought this was flood water damage, but no it is ANY water damage has a $5000 limit.

At this time I told Manuel of the limit and I needed him to remove everything because I couldn't afford to pay him anything else as that $5000 would have to go to the carpet/floorboard repairs. In front of the contractor, Manuel said not to worry that it would only be a few hundred dollars more than the $1700 I had already paid him and that it was important to his company to make it "like it never even happened". I agreed to let him continue at this point believing him that it would only be a few hundred dollars more.
Sigh - unfortunately I think I can see where this is going and I don't believe you're going to like the answer.

Sunday was uneventful. On Monday, I again expressed my concern to Manuel about the cost of all this equipment running because the insurance company wasn't going to pay and he again assured me that it would only be a few hundred dollars more than the $1700 fee I had already paid him. On Tuesday morning he removed all of his equipment and left. So the equipment was there only 4.5 days max.
You hadn't gotten any quote in writing by this point correct?

One of the things I had to do before I could close on my house was pay the water extraction company to show the title company the house was clear with no possible liens against it. So I called up the company and asked for the final bill. This was the first time I had talked to anybody at the company other than Manuel (or that dispatcher on day one). The lady told me the final bill was $7000!!! I immediately disputed this amount as this was quite a bit more than "a few hundred dollars"! She said regardless, I had to pay it. I refused, saying that it wasn't a fair price. I demanded to see an itemized bill. She refused. I talked to her supervisor with no luck.
You are entitled to see the itemized bill.

At this time, Manuel went back to the house looking for me. The contractor was there repairing the baseboards. He told me that Manuel walked in without knocking or ringing the doorbell as if he owned the place. Contractor told me Manuel harassed him asking for me and threatening me and said that it was all my fault because I involved the insurance company in this (?!?).
You had given him a key to the house, correct?

I wound up calling the owner of the franchise. I told him I needed a copy of the bill so I could pay it. By this time it was the day before the new closing date and I *had* to pay the bill in full or risk not selling the house. The owner told me that I would get a copy of the bill in a few weeks from his lawyers (Note, the owner/company knew I was selling the house and had to pay them to close).
Honestly, this is not their problem - it's your responsibility to make sure everything is done before closing (or postpone the closing date again)..though I do sympathize.

Calmly as always, I asked him why I would be getting the bill from lawyers rather than his company. He said because we threatened to flee the country (wtf?!) and blah blah. I told him, again, calmly, that *I* was the one calling him to pay. I reminded him that this all happened in the short span of 2 weeks and that I will pay them.

He gave me their address. I went to their offices and they refused to give me the bill until I paid. I paid with a credit card in two separate charges of $2000 and $3300. They then had me sign all this paperwork including the billing statement just to get them to give me a paper saying everything was paid in full and in the clear for the title company. I was being extorted in my opinion.
You have not been extorted.

I sold the house the next day. I then went through the bill from the water extraction company with a fine tooth comb. Forget the fact that the charge was quite a bit more than the "few hundred dollars", they flat out over charged me by at least $2400 dollars. These overcharges were primarily from charging me for 6 full days of the gear instead of the actual 4.5 days, for 19 pieces of gear instead of the actual 16, and for water extraction from the garage when there was never any water in the garage

I contested the charge of $3300 from the credit card company on the basis of overcharges. The extraction company only refunded $500 for the 19 vs 16 portion.

My questions and assumptions:

Should I sue them in small claims court?
Here's the problem - you had nothing in writing whatsoever. How are you going to prove that you were not aware from the start that it may run much higher than and you were ok with this?

(if it becomes your word against his, he's going to win - the burden of proof is on you)

If so for how much?
Just the actual remaining disputed amount?
An amount closer to "fair" (1700 plus a few hundred dollars remaining to them) based on their agent's quotes to me? Say, 7000 - 1700 - 300 = Sue them for 5000?
Ditto previous answer.

Can I and should I sue them for more due to the extortion involved? If so, how much?
You have not been extorted. And even if you had, it would be a criminal matter, not civil.

It's my opinion that by refunding the $500 they've already admitted fault in their billing process in my case. Is that true?
No, that is not true. You'll find many, many instances of companies reducing or discounting something when a customer complains - it's quite often the easiest way to get rid of said customer and is not an admission of guilt or liability.

I have yet to discuss any of this with the company. I haven't talked to them since I paid the bill. Do I have to before I can sue them? I really don't want to since they extorted me to pay and had already threatened me with lawyers, but if I have to I will.
Yes - you should give the company a chance to respond to your complaint. And you still haven't been extorted.

Whom do I sue? The entire corporation, the franchise, or the owner of the franchise?What is the name of your state (only U.S. law)?

Some of the papers they had me sign after the fact stated things like the "quoting agent" and such. I only ever talked to Manuel about price. Nobody from the company other than Manuel and his one coworker ever visited my house.

On the main paper I signed (the total bill) I crossed out the "hereby authorize" part before signing it as an indication that I was being extorted. At least in my mind this is what I believe it to mean. If I show a judge the crossed out "hereby authorize" and explain that to him will that prove that I was under duress? It was the only thing I could think of at the time to show that I was being pressured into signing.

Thanks for reading and for any advice you can offer.

StuckInSAWhat is the name of your state (only U.S. law)?
By all means run your details by an attorney - but very simply you were not extorted. Crossing out the words "hereby authorize" does not indicate that you believe that you were being extorted and/or you signed under duress.

Please clarify though - you had absolutely nothing in writing, correct?
 

yyarboro

Junior Member
Excellent advice from Dogmatique

So many of the problems people have could probably be avoided if they exercised more due diligence, and I don't mean that unkindly to this O.P. or to O.P.'s in general.

Before having any work done, ask lots of questions, get several estimates, get them in writing and make them as detailed and as specific as possible. Before signing a contract, read it through carefully, and better yet, have a lawyer read it. A lot of aggravation could be avoided this way.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top