What is the name of your state (only U.S. law)? OHIO
Hi all.
A friend of mine owns an LLC that does cleaning. He is a sole proprietor and has no employees, other than himself.
While working on a cleaning job, there was an unexpected airborne residue. In order to clean up the residue, a third party was contracted to do the work. The work was completed, and my friend adjusted his PO for just time and travel expenses, and offered to pay for the additional cleaning.
The customer paid the adjusted PO, and nothing was ever said about the cleaning cost.
FF to this week, he received a subrogation letter from the customer's insurance company. The bill is literally 10x higher than the cleaning bill, which he called about after receiving the letter from the insurance company. He has a copy of the actual cleaning bill coming from the contractor who did the work.
He has no liability insurance, and his LLC is still in the red, as he has only been in business for a couple of months.
What are his options? Let the LLC file bankruptcy and move on? Settle for the original amount? I can't imagine the bill being 10X what he was told when it comes from the person who did the actual work.
Ideas? Suggestions?
Thanks in advance.
Hi all.
A friend of mine owns an LLC that does cleaning. He is a sole proprietor and has no employees, other than himself.
While working on a cleaning job, there was an unexpected airborne residue. In order to clean up the residue, a third party was contracted to do the work. The work was completed, and my friend adjusted his PO for just time and travel expenses, and offered to pay for the additional cleaning.
The customer paid the adjusted PO, and nothing was ever said about the cleaning cost.
FF to this week, he received a subrogation letter from the customer's insurance company. The bill is literally 10x higher than the cleaning bill, which he called about after receiving the letter from the insurance company. He has a copy of the actual cleaning bill coming from the contractor who did the work.
He has no liability insurance, and his LLC is still in the red, as he has only been in business for a couple of months.
What are his options? Let the LLC file bankruptcy and move on? Settle for the original amount? I can't imagine the bill being 10X what he was told when it comes from the person who did the actual work.
Ideas? Suggestions?
Thanks in advance.