<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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