Lent money on verbal agmt to a indpt contractor who no longer works with me

[NVNiceGuy]

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

OK, so I own a trucking company and last year had brought on an independent contractor as a driver. Within a few months of working with me on a very consistent basis (with no issues), he ran into some legal troubles that impacted his ability to drive for me. He was not in a position financially to take care of the situation, so I helped him out by posting his initial bail, retaining attorney and fronting legal costs. I believed in his case and we had a verbal agreement to have payments deducted out his weekly settlements while the balance remained, plus interest.

Fast-forward 8 months or so and after having consistent payments taken out of his checks as agreed, he still owes me over $10K. I had continued to finance his case as it progressed. I have receipts of payments to bond companies, attorneys, etc..... I also have documentation of weekly payments being deducted as agreed. Well, we had a disagreement on the business end and now he doesn't drive for my company. I no longer have the ability to deduct payments from his earnings. Since he stopped working with me, I haven't received 1 payment from him. I asked him to sign a written contract to confirm his intentions of paying me back, but he refused. He says he will pay me back, but his refusal to put it in writing says otherwise.

I need to know how to start the process of building a case so that I can someday get my money back. Any advice?

 

[xylene]

Prove he owes you 10 grand and sue him.

I think you really need to be talking to a lawyer. You're kind of in a hole.

I'm not really sure how you were legally making payroll deductions without a written agreement.

 

[PayrollHRGuy]

I'm not really sure how you were legally making payroll deductions without a written agreement.

Because he wasn't an "employee" he was a contractor and the guy let him.

 

[Zigner]

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

OK, so I own a trucking company and last year had brought on an independent contractor as a driver. Within a few months of working with me on a very consistent basis (with no issues), he ran into some legal troubles that impacted his ability to drive for me. He was not in a position financially to take care of the situation, so I helped him out by posting his initial bail, retaining attorney and fronting legal costs. I believed in his case and we had a verbal agreement to have payments deducted out his weekly settlements while the balance remained, plus interest.

Fast-forward 8 months or so and after having consistent payments taken out of his checks as agreed, he still owes me over $10K. I had continued to finance his case as it progressed. I have receipts of payments to bond companies, attorneys, etc..... I also have documentation of weekly payments being deducted as agreed. Well, we had a disagreement on the business end and now he doesn't drive for my company. I no longer have the ability to deduct payments from his earnings. Since he stopped working with me, I haven't received 1 payment from him. I asked him to sign a written contract to confirm his intentions of paying me back, but he refused. He says he will pay me back, but his refusal to put it in writing says otherwise.

I need to know how to start the process of building a case so that I can someday get my money back. Any advice?

The small claims limit in Nevada appears to be $10,000. If you are willing to give up any amount over that, then you can sue in small claims court. Of course, if you win you'll need to figure out how to collect.

 

[xylene]

Because he wasn't an "employee" he was a contractor and the guy let him.

Even more so then. How was he accounting for this on his 1099?

 

[PayrollHRGuy]

I didn't mean to imply what the OP did was right by any standard. But the fact that he loaned someone over $10K without a written agreement shows a certain amount of ignorance. There is no reason to think that it doesn't extend into wage and hour law.

 

[xylene]

I didn't mean to imply what the OP did was right by any standard. But the fact that he loaned someone over $10K without a written agreement shows a certain amount of ignorance. There is no reason to think that it doesn't extend into wage and hour law.

Indeed. Good points. I guess I was trying to suggest that if the OP wants to open a can of worms, he should read the label and have someone (his own lawyer) figure out what this is all really worth to him.