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No-contract Design-Work on Land: Right of Designer to sell work in Transaction ?

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Kerry9

Junior Member
FACTS:
- Design work for Land Developer (3 years) on billed hourly basis (Drawings, studies, renderings & analyses for major project). Prompt pay.
- Developer earlier verbally offered (small %) participation upon project sale: accepted, but no contract materialized
- Developer subsequently rejected all proposed written contracts: work continued on hourly basis
- Most work inscribed 'Designed by' w/Copyright symbol & year; All originals in my possession
- Work now 99% complete
- Planned sale of unbuilt project beginning marketing stage (I'm making marketing materials)
- Designer is registered as co-applicant & jurisdiction approvals identify Designer as same

QUESTION:
Can I demand small % of R.E. sale ON BASIS OF OWNERSHIP of design work ? ( 10% )
OR, on basis of being applicant? Or, on basis of previous verbal offers of participation ?

If realistic, then I would engage attorney.
 


HomeGuru

Senior Member
FACTS:
- Design work for Land Developer (3 years) on billed hourly basis (Drawings, studies, renderings & analyses for major project). Prompt pay.
- Developer earlier verbally offered (small %) participation upon project sale: accepted, but no contract materialized
- Developer subsequently rejected all proposed written contracts: work continued on hourly basis
- Most work inscribed 'Designed by' w/Copyright symbol & year; All originals in my possession
- Work now 99% complete
- Planned sale of unbuilt project beginning marketing stage (I'm making marketing materials)
- Designer is registered as co-applicant & jurisdiction approvals identify Designer as same

QUESTION:
Can I demand small % of R.E. sale ON BASIS OF OWNERSHIP of design work ? ( 10% )
OR, on basis of being applicant? Or, on basis of previous verbal offers of participation ?

If realistic, then I would engage attorney.

**A: you can demand anything you want but the issue is will it be accepted. You invoice and get paid per agreement. Stay away from % of real estate sales.
 

Kerry9

Junior Member

"You invoice and get paid per agreement."


There is NO agreement

My billing is nearing an end, and that will be that.
My interest is in receiving a long-promised and long ago agreed-to (yet never ratified in writing) "incentive bonus" for completing the arduous work, especially when no others would take it.

Incentive bonus was also to have been in consideration of having foregone payment for earlier past work (now past statute of limitations under any legal theory).



How else can I obtain, other than % ? And why do I want to stay away from it ?
 

HomeGuru

Senior Member
How much are we talking about and why did you not have a contract? AIA and other A/E design associations have contract forms that you can use.
You are a service provider and not a developer or investor. Why risk a % of profit of sales? You have no idea how profit is determined and what if there are no sales?
 

Kerry9

Junior Member
40k
NOT an A/E (but perform same services - no stamps required for tasks. Legal term is 'Designer')

I've never relinquished ownership of my work in any document, and believe I still own it. Therefore believe I have right to sit at sales 'table' for compensation for work-product.
(Prior compensation has been for labor to entitle property)

Regarding being only a service provider: They early on dangled offers of equity participation (in exchange for deferral of old unpaid prospective work). Their fault for never having signed any of multiple past written agreements offered to memorialize same. I'm now not interested in old unpaid amounts, but in % (which is far larger). Again, their cost for refusing to sign agreement stating what they'd verbally offered me.


Regarding risk: Not interested in litigation (which would surely occur if I demand immediate large payment for sale of work product. Sale will allow them to receive proceeds from which to pay me)
I know sale will take place due to many offers already made.
I'm thinking being reasonable is the better course to take.
 

HomeGuru

Senior Member
I don't know as it may be your fault for not getting written contracts. For that amount of AR, I suggest talking to an attorney for the best way to approach and settle to make sure you get paid.
 

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