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RECOMMENDING A FEW BOOKS
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A short story. In my down time I like to read easy suspense thriller type books. So I read this one book by author William F. Brown. I liked it and wrote a short favorable review on Amazon. The author emails me, thanks me, and offers me a another of his books as a gift. This going on for 4 books and after the fourth favorable review he writes and thanks me, and I respond, why aren't your books movies? I suggest he have his agent get him a movie. He responds he has no agent and offers me the opportunity. So, now I'm an agent. So if any of you are movie producers in your spare time, I suggest these books for movies.
For those of you who aren't movie producers, but like to read whitty, fast paced suspense thrillers, check out William F. Brown's books. His latest, Burke's War, is one of his favorites; get it here: http://www.amazon.com/dp/B00TXZYQWG
I liked The Undertaker; get it here: http://www.amazon.com/dp/B004NIFSVG
His other books are great too; I am still in middle of Thursday at Noon. I really liked Amongst My Enemies also.
So if you need something to read other than my contracts, check out these books, and don't forget to write a review on Amazon when you're done. If we ever do a movie there will be opportunity for window decals, yard signs, company names and owner names - so do you part. Thanks.
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QUESTION: COLLECTIONS - BILLING ERRORS AND PURSUING YOUR RECEIVABLES
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Ken,
We purchased some accounts in 2011. One account (a business) slipped through the cracks and he never got entered into our billing system. When it was caught and I called him to explain what happened he informed me that he sold the business in Jan 2014 but still works there. When I told him the past due amount (around $1700.00) and that we would work with him as far as payments he basically said “sorry but it’s not my business anymore” We have his signed contract - monitoring and equipment leasing - which expires in Oct 2015. I ran a NYS corporation search and it still shows him as an active owner. My question is: can I (or you) sue him for the past due? Thanks.
Anon
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ANSWER
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Interesting problem that raises a number of issues.
- Can you correct billing errors, or in your case, failure to bill, and recover the actual amount due?
- If your commercial subscriber sells the business to another who keeps the same entity, how does that affect you?
- If you commercial subscriber sells the business to a new entity, how does that affect you?
- Can you continue servicing a new entity once you know about it?
- Can you recover your equipment, which in your case is leased?
- Will I handle the collection case?
You have a contract with the subscriber [hopefully - and hopefully my Standard All in One Commercial Lease]. You can go after that named subscriber. You don't know the terms of the sale and for all you know there is a payout and once you get a judgment against your subscriber, the seller, you can attach the payout from the buyer to the seller. If the sale was not arms length and above board you can sue the buyer for successory liability and fraudulent conveyance. You checked and your subscriber has not dissolved and the owner still shows as a principle [though you probably were only able to see that his name is listed for service of process with the Secretary of State], but that information is insufficient to determine the terms of the sale and the existence of the entity.
Most of us have found billing errors. As a general rule, you can correct them and send a corrected bill. Charges are not normally waived just because there are billing errors. If there is something more than a billing error, such as a confirmation of ourstanding debt that your subscriber relies on, in good faith, then you may be precluded from correcting the charges. In your case it seems like you can send a corrected invoice.
If the buyer retained the existing entity, new stockholders of the same corporation, you can pursue the entity. Nothing has changed except the stockholders. If a new and different entity buys your subscriber's business then most likely it has not assumed existing debt [though sometimes it does] and will not be responsible for that debt, provided the sale was for adequate consideration and not a fraudulent conveyance. If fraudulent you can sue the new entity [obviously you have to consider the economics of any litigation - because long after your emotions have had time to settle down the realization that you're involved in a lawsuit, with its time, effort and money, may unsettle you]. [sort of like leasing an expensive car - when the thrill is gone the payments continue].
Once you know that a new entity is using your leased equipment and services you must terminate immediately. No trial period. No contract - no service. You can make a demand for removal of the equipment and then sue either for replevin [to recover the actual equipment] or for conversion, the value of the equipment. The outcome of that litigation is going to depend on your contract and the facts of the case, so it's not as easy as it sounds to win this kind of litigation - definitely not something you or your brother in law attorney want to try on your own].
Which brings me to the final issue, will I handle your collection case. If you are using our All in One standard forms we will support you on commercial collection cases, working with your local counsel if you're not in NY or NJ. We get one third of what we collect and you pay expenses for the case. To discuss our collection practices contact Gene Rosen,Esq 516 747 6700 x 303 or Jesse Kirschenbaum,Esq 516 747 6700 x 307, and for our Commence Litigation form, required for each collection case referral, contract Maria Contreras, paralegal, at mcontreras@kirschenbaumesq.com or 516 747 6700 x 320.
If you're wondering why you should be using Kirschenbaum & Kirschenbaum for your collection and other litigation you might want to ask if your brother in law's firm [or firm you are using] has 7 experienced alarm litigation attorneys and 5 experienced alarm paralegals assigned to its Alarm Collection Department. It doesn't, and we do. If you're using our Standard All in One Agreements, preferably up to date, we will assist you.
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