Manufacturer Delivers Terrible End-Product

[threepeas]

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

As an LLC, I was hired by a client to design custom furnishings and select fabrics for them. One custom sofa was made by a local business that I had an established relationship with and is known well in the industry. The business also reupholstered three pieces of the client's existing furnishings.

On day of delivery, the client opted to not have me there. I had specified in an e-mail that they need to look over everything with a fine tooth comb. An hour after delivery was completed, the client began to call me, detailing the endless workmanship and quality issues with the furnishings.

Upon contacting the business, I was receiving spotty responses, at best. Soon the go-to repair guy's company cell phone was disconnected, there's no longer a receptionist answering the business phone number and I'm receiving zero responses from the owner of the company by phone or e-mail.

I've submitted a claim with the BBB and the Attorney General's office; however, the client said, should it come to this, they will expect some funds returned to them from me, which means I'm out the money.

I'm hoping someone can share some insight. Perhaps I can go half with the client on the repairs to make it right, then declare it as bad debt at the end of the year!? We're talking about $7k and I see no point in going to small claims, as it'd just eat-up more of my time and, if this company is going out of business, I'd end up without anything anyhow.

Please advise!

 

[tranquility]

I'm hoping someone can share some insight. Perhaps I can go half with the client on the repairs to make it right, then declare it as bad debt at the end of the year!? We're talking about $7k and I see no point in going to small claims, as it'd just eat-up more of my time and, if this company is going out of business, I'd end up without anything anyhow.

You most probably breached your contract with your client. He would be nuts to go 1/2 of the cost of repairs with you. You are not going to sue him, he will sue you.

It is not a "bad debt", but it is going to go into the cost of goods sold so you will not have to take the costs to repair the item as income.

Your recourse is with your sub-contractor. He is the one, if he breached his contract with you, you need to sue.