Unpaid Business expense.

[anrkngl]

I had taken a business trip with a then business partner (first mistake -- the trip had little outcome for the company in the long run) and I had incurred a cost of ~$3000 for the duration of the trip (airline ticket and hotel stay mostly). This was pre-incorporation. He said I would be re-imbursed when we got funded. Fast forward to 3 months later. He secured a loan for $15,000, and when I had inquired when I would get refunded the value, he stated he hadn't thought of it. He had also persuaded another associate to purchase a few office computers under the associate's own personal credit. This was much to my dismay, since at this point, one would assume he had no intention of paying the monthly installments as he had promised. This person also (by the company chequebook) had written cheques to pay his personal rent. This all started October 99, and is still going on. He stated three weeks ago that he was going to get funding (finally !?) and he would pay me back this week friday (today) well, no word, and he avoids taking delivery on certified mail from my associate.

My questions are as follows:
What are my rights for my business expenses occured. I assume it is reasonable for me to believe our verbal contract agreed upon is backed from the receipts with phone calls to his family, which would prove my credit card number, and his home phone number.

Since it was pre-incorporation, do I have to pursue him personally in small claims court?

My associate still has his name on the computers. Even though they were intended for the office, are they his property since the employer did not keep his end up by making payments?

Are the cheques to pay his rent embezzlement? Can bank records secure a pattern of abuse and possible criminal actions?

Was his statement he would pay the amont back a case of fraud? Would it appear to a court to be Open-and-shut as far as his behaviour is concerned? He was constantly telling potential investors that he had $130,000 raised, when I cannot see how this is possible.

Thank you for any help you can send. If any lawyers experienced in these issues who practice in allegheney and butler county would like to respond, I'd appreciate it: [email protected], Pittsburgh PA.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by anrkngl:
I had taken a business trip with a then business partner (first mistake -- the trip had little outcome for the company in the long run) and I had incurred a cost of ~$3000 for the duration of the trip (airline ticket and hotel stay mostly). This was pre-incorporation. He said I would be re-imbursed when we got funded. Fast forward to 3 months later. He secured a loan for $15,000, and when I had inquired when I would get refunded the value, he stated he hadn't thought of it. He had also persuaded another associate to purchase a few office computers under the associate's own personal credit. This was much to my dismay, since at this point, one would assume he had no intention of paying the monthly installments as he had promised. This person also (by the company chequebook) had written cheques to pay his personal rent. This all started October 99, and is still going on. He stated three weeks ago that he was going to get funding (finally !?) and he would pay me back this week friday (today) well, no word, and he avoids taking delivery on certified mail from my associate.

My questions are as follows:
What are my rights for my business expenses occured. I assume it is reasonable for me to believe our verbal contract agreed upon is backed from the receipts with phone calls to his family, which would prove my credit card number, and his home phone number.

Since it was pre-incorporation, do I have to pursue him personally in small claims court?

My associate still has his name on the computers. Even though they were intended for the office, are they his property since the employer did not keep his end up by making payments?

Are the cheques to pay his rent embezzlement? Can bank records secure a pattern of abuse and possible criminal actions?

Was his statement he would pay the amont back a case of fraud? Would it appear to a court to be Open-and-shut as far as his behaviour is concerned? He was constantly telling potential investors that he had $130,000 raised, when I cannot see how this is possible.

Thank you for any help you can send. If any lawyers experienced in these issues who practice in allegheney and butler county would like to respond, I'd appreciate it: [email protected], Pittsburgh PA.<HR></BLOCKQUOTE>

Do you have anything in writing such as a contract, partnership agreement, letter agreement etc.?

 

[anrkngl]

It wasn't exactly a partnership. Yes, I was an employee, but this was more a matter of the fact that business was conducted during this trip, I footed most of the bill, and he has stated several times he intends to pay it, but has made no motions toward that end.

He has received money and loans to pay bills, but he has not returned what he owes me as a business expense. Partner was probably the wrong word, as he was above me for the duration. I possess several "employee non-disclosure" agreements that would help my case, and there are several people who have witnessed my working there. Also, all the bills have proven one thing: he was there for the duration of the trip, I funded most of the trip, and he owes me for that.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by anrkngl:
It wasn't exactly a partnership. Yes, I was an employee, but this was more a matter of the fact that business was conducted during this trip, I footed most of the bill, and he has stated several times he intends to pay it, but has made no motions toward that end.

He has received money and loans to pay bills, but he has not returned what he owes me as a business expense. Partner was probably the wrong word, as he was above me for the duration. I possess several "employee non-disclosure" agreements that would help my case, and there are several people who have witnessed my working there. Also, all the bills have proven one thing: he was there for the duration of the trip, I funded most of the trip, and he owes me for that.<HR></BLOCKQUOTE>

Sounds like a small claims court action. Send him a certified letter stating that this is your final demand, pay or else see you in court.

 

[anrkngl]

I am in the process of preparing the letter as I write this. It is a enumerated list detailing the principals involved (DEBTOR DEBTEE and so forth), the terms used in the document, the history behind the document, and the possible courses of action.

He does, however, refuse most certified mail. I will send it this way anyways.

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by anrkngl:
I am in the process of preparing the letter as I write this. It is a enumerated list detailing the principals involved (DEBTOR DEBTEE and so forth), the terms used in the document, the history behind the document, and the possible courses of action.

He does, however, refuse most certified mail. I will send it this way anyways.<HR></BLOCKQUOTE>

You can use this technique of mine when people do not pick up their certified USPS mail. Sometimes I catch them off guard and send the correspondence FedX, UPS etc. as long as you can get a confirmed receipt of deilvery per tracking number. At times the recipient thinks it is an order or something else. When all else fails I hire a local process server.

 

[anrkngl]

Well, along with my letter, which I hand delivered (it's not so bad like he is crazy or something) I had created a paper that stated he had receivied it, and a line for him to sign. There was a line stating that I recognized it, and I signed as well. As long as you are respectful, you don't really have a problem with others owing you money I suppose. The attachment also states how long he has to respond (until the 18th. I think that is enough time.) and the consequences if he does not agree (I will seek unpaid time, which I would not seek if he signs this paper.

The paper details what he owes, why he owes it, and it can also stand as evidence if he welches. If he agrees to it, we shall draft the terms of his payment in contract. All should go well, and I'm CMA with lots of signatures from him.

Signatures are good.