Debt Collection for Small Business

[2020Extrapreneur]

What is the name of your state? Missouri

I am a small business owner. I was contacted by the foreman of another small business requesting my services for 30 days. The owner was out of town. I provided the services and billed the client. The owner contacted me to advise he did not authorize his foreman to contract my services and refuses to pay. However, the client benefitted financially from the work my associates provided.

How can I collect my money? I do not want to outsource.

I really appreciate any help you can provide.

 

[Zigner]

What is the name of your state? Missouri

I am a small business owner. I was contacted by the foreman of another small business requesting my services for 30 days. The owner was out of town. I provided the services and billed the client. The owner contacted me to advise he did not authorize his foreman to contract my services and refuses to pay. However, the client benefitted financially from the work my associates provided.

How can I collect my money? I do not want to outsource.

I really appreciate any help you can provide.

The foreman had apparent authority. Sue the guy.

 

[adjusterjack]

How can I collect my money?

This will give you a basic understanding of "apparent authority."

https://en.wikipedia.org/wiki/Apparent_authority

 

[zddoodah]

How can I collect my money?

By suing. Did you not know that?

 

[bcr229]

If the amount is under $5000 your company can sue the other company in small claims court and you don't need an attorney to file, though you may find a consult with one about how to present your evidence beneficial.
https://www.courts.mo.gov/page.jsp?id=682

 

[Litigator22]

What is the name of your state? Missouri

I am a small business owner. I was contacted by the foreman of another small business requesting my services for 30 days. The owner was out of town. I provided the services and billed the client. The owner contacted me to advise he did not authorize his foreman to contract my services and refuses to pay. However, the client benefitted financially from the work my associates provided.

How can I collect my money? I do not want to outsource.

I really appreciate any help you can provide.

Your post is lacking the needed details to know whether or not the foreman was acting within the scope of his express or implied authority. But don't let that deter you, as there is no reason why you should bear the full burden of proving that issue, not if you are creative. And by that I mean in the sense of suing both the principal (owner) and the agent (foreman).

Do that and you can pretty well be assured that the agent will go to some length to escape liability by proving that he was in fact fully authorized to act in his employer's stead when engaging your services. Also he will be privy to the agreements, understandings and conditions affecting the principal/agent relationship. Circumstances that may not be easily available to you without burdensome discovery processes.

Lastly you state that the owner was absent from his place of business at the time the foreman engaged your services. What we're aren't told is when the owner became cognizant. That could be most critical and something you indeed want to elicit from the foreman.