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  1. #1
    Join Date
    Aug 2012
    Posts
    9

    Default Independent Contractor Required to Bear the Cost of Stolen Merchandise

    My question involves business law in the state of: Florida

    Hello. In 2002, I signed an "Independent Contractor Agreement" with News-Journal Corporation(NJ) to be "responsible for the delivery and sale of the Company's newspapers through newsstands and retail establishments in the area of primary responsibility known as Route # (I left out the number for this post)." NJ had not contracted right to collect sums owed to me from my customers.
    The area included a Wal-Mart Superstore(WM). I would create my WM bill from the number of papers I put into their store, minus those I took out, and charging WM for the difference times the price we charge stores. I took my weekly bill to WM, they submitted it to their accounting department, and eventually sent a check to NJ, which NJ then credited me FOR THE FULL AMOUNT I BILLED WM on NJ's bill to me.
    In November 2007, WM "changed their method of payment to The News-Journal" per a written letter from one of the NJ managers. They now would use the services of The Nexxus Marketing Group, LLC (Massachusetts #743050044). The Nexxus Marketing Group(NG) specializes in scan-based trading(SBT). I was told by NJ not to give weekly bills to WM, give the weekly bill to NJ instead.
    Ever since, WM's credits on my bill from NJ are short @ $30 per week from the amount I billed them for. This is over $8900. This is because NG only pays for those items scanned, leaving me to pay NJ for those 'stolen' a.k.a. 'shrinkage'.
    My questions are these

    1. Can I sue (and win) WM for the difference between what NJ credited me for and the amount I billed WM for? What would I sue them for?

    2. Can I sue and win) NJ and WM in one suit? What would I sue them for? I only have a written contact with NJ, maybe an 'agreement showing formation in general' with WM.

    3. Can I sue ( and win) NJ alone for unjust enrichment?

    4. Can I sue ( and win) one of the three of them for 'tortious interference? Which one: NJ? WM? or NG?

    Thanks for your help! I know I am long winded, but the devil is in the details...

    Thanks again!!

  2. #2
    Join Date
    Sep 2005
    Location
    California
    Posts
    64,947

    Default Re: Independent Contractor Required to Bear the Cost of Stolen Merchandise

    You're not an employee. You're self-employed. There is no reason why the distributor cannot have as a requirement of its contract that you must pay for all newspapers you receive but do not return. If you want to attempt to renegotiate the terms of your contract, you may discuss that possibility with your client. They are free to respond, "no", or, consistent with any notice required under your contract, "we don't need your services any more."

  3. #3
    Join Date
    Aug 2012
    Posts
    9

    Default Re: Independent Contractor Required to Bear the Cost of Stolen Merchandise

    Can I sue Walmart for the difference between what I put in their store and what they paid me for?

  4. #4
    Join Date
    Sep 2005
    Location
    California
    Posts
    64,947

    Default Re: Independent Contractor Required to Bear the Cost of Stolen Merchandise

    I can't see your contract from here. You appear to have told us that you agreed to bill through, and only through, Nexxus. If that's the case and you sue, I would expect you to lose your lawsuit and your contract. If not, you can have a lawyer review your contract in relation to the possibility of winning a few dollars from WalMart, but you can still anticipate losing your contract with them if you sue.

  5. #5
    Join Date
    Dec 2009
    Location
    not here
    Posts
    874

    Default Re: Independent Contractor Required to Bear the Cost of Stolen Merchandise

    My company is a supplier to Wal-Mart, and this is exactly the sort of thing Wal-Mart puts in its contracts. Very very typical. And even if you have a winning case, you may never actually get to the win end. It will take a long and costly time to get there because one notable thing about Wal-Mart is that it is very very good at dragging its heels through the courts. Many people suing Wal-Mart give up eventually.

  6. #6
    Join Date
    Aug 2012
    Posts
    9

    Default Re: Independent Contractor Required to Bear the Cost of Stolen Merchandise

    Hello. Thanks, Mr. Knowitall, for responding. I know it takes and effort, so I am grateful!
    I never agreed to get paid by Nexxus. News-Journal(N-J) went into Nexxus and agreed to it. Then N-J TOLD ME I had choice after they had agreed to it or else they would take away my dealership. I tried to get Walmart to sign 'receivers' for each daily shipment in and out, by the Walmart Store Manager told his people not to sign anything. Each time I reduced the number of papers I put into Walmart, I was told by N-J to "put more papers in or have my dealership taken from me".
    It is because of N-J's agreement with Nexxus, and the fact that I had nothing to do with it, that got me thinking of suing N-J for 'tortious interference'.
    I ended my relationship with N-J on 6/30/12, so they can not exercise their treat. I have also waited until they returned my $4500 'cash bond' before begining to take action.
    Again, thanks for your time, and I look forward to your reply both now and in the future!
    Meditech

    - - - Updated - - -

    Thanks, eerelations, for your response! I agreed it will be difficult. I have asked News-Journal (N-J), since they prize selling papers in Walmart so much, if they, N-J, would like to pay me the amount owed?. They are currently crafting their response, so we will see. I dressed up my request to N-J with the likelihood of two other former dealers also speaking out against Walmart, the fact that three of their current N-J Managers will be called to testify against Walmart, and the thought that Walmart will likely throw them out of the store if they get sued.
    I am struggling with whether I have a case against N-J itself, either for 'breach of contract', 'tortious interference' or maybe 'unjust enrichment'.
    What, if any, of these three would you suggest I proceed with against N-J?
    Thanks again for your response. I know it take time and effort, so thanks again!
    Meditech

    - - - Updated - - -

    Hello!
    I went back to read my wife's signed contract and got quite a surprise!
    The timeline:

    1. on 4/1/10, Halifax Media Holdings (HMH) started publishing the 'News-Journal' (the paper). I think HMH bought the assets of the former company from a receiver appointed by the court to settle a lawsuit.
    2. on 4/1/10, the same day, New-Journal Corporation (NJC) changed it name to NJWU Corporation.
    3. ON 8/6/10, FOUR MONTH LATER, MY WIFE SIGNED A CONTRACT ENTITLED 'NEWS-JOURNAL CORPORATION SINGLE COPY INDEPENDENT CONTRACTOR AGREEMENT' !! This contract was signed, on a space saying 'News-Journal Corporation by:' by a Manager of HMH and witnessed by two other employees of HMH, including a second Manager.
    4. on 4/12/11, NJWU Corporation, the former NJC, was dissolved administratively!

    Needless to say I, we, were shocked.

    My wife ended her contract on 6/30/12. She is part of the Walmart shortage/theft issue mentioned above. We clearly can not sue News-Journal since it no longer exists. We have no written contract with Halifax Media Holdings. Just a contract sign by three employees of HMH purporting to be News-Journal Corporation.

    Questions:

    1. What do you think of this?
    2. Can my wife charge the three employees with fraud? I think this a felony in Florida, with civil remedies for three times the amount any loss, in our case $8900.
    3. Since my wife does not have a signed agreement to work as an Independent Contractor, but has clearly worked for HMH for @ 2 years, can she sue HMH as an employee whom has no been paid?

    Thanks in advance for your attention to this matter!!
    Meditech

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