Being taken to small claims over Deposit

[Ykay]

What is the name of your state (only U.S. law)? SD
June of 07 I had an item for sale in my yard. A man and his wife came back and put $250.00 down against the purchase of $750.00
Gave me a check. He did say it will be a while before he could come up with the rest. I told him no problem it will just sit here.
Several weeks short of a year. He called and said he has the money.
I sold the item 2 months earlier. He asked why I didn't contact him if this was a problem. I couldn't remember his name or where he lived until he refreshed my memory. He wants his deposit back. I told him I would give him $100.00 and thats it. He said he wants it all back.
I refuse. I am not a Sears layaway dept.
3 months later. He is now taking me to small claims court. Breech of contract and wants his deposit back.
I never made contact with this person before I sold it. I don't feel I had too. My neighbors who own a small gift shop said I don't owe him a thing and I could sell it and keep the money. they told me to fight it - I'll win. He has no rights it was a verbal and it wasn't my responsible to contact him.

 

[las365]

Do you have a question?

 

[Ykay]

Sorry,
Who's right is my question.
Does this guy have the right to sue me and can he recover his deposit.?

 

[las365]

Yes, he has the right to sue you.

A man and his wife came back and put $250.00 down against the purchase of $750.00
Gave me a check. He did say it will be a while before he could come up with the rest. I told him no problem it will just sit here.

Then you sold the item to someone else. I think you owe him the entire $250, as you did not put a deadline on the final payment or pickup, or tell him it would cost a storage fee.

 

[racer72]

If you are sued, besides paying the $250, you will get to pay the gentleman's court and attorney fees too.

 

[Hot Topic]

You should have copied his name, address and telephone number from the check he gave you.

You decided to keep his $250.00 deposit in addition to the money you got for the item from the person or persons you sold it to. You can't do that.

Not only will you have to repay the deposit, he may get a bigger judgement because what you did was so egregious. You should have to pay his court costs, too.

 

[Ykay]

If I pay him his $250.00 before we go to court can he still bring me to court for the fees he incurred?

 

[las365]

Write him a letter offering $250 in exchange for a release of his claims and him dismissing his small claims lawsuit. Ask him to respond within a certain amount of time, say, 10 days. Maybe 7, depending on when your court date is.

Then he writes you back saying he wants $XXX. Then you can negotiate. If you can agree on an amount, cool. If not, go to court and you will at least be able to show the judge that you tried to resolve the issue.