Getting My Money Back

[Jamison]

My question involves business law in the state of: New York

Getting My Money Back

I run an Internet marketing company out of Colorado. I was outsourcing some development an Indian company that has a base in Rochester New York. I had ben working with them for several years prepaying blocks of time. I prepaid $30,000 at the beginning of 2008 for 3000 hours of work. Less than 2000 hours were used up in 2008. I requested the balance be sent back, but they claim that I paid for a flat fee for 2008 and that there is no balance.

I have documents from employees within the company and email that show the balance left on the account. There was no contract for the $30,000 specifically, but I can show that in previous years the balance always carried over to the next year.

I do not want to use the balance up in legal fees. I have spoke to attorneys that say it could be expensive to fight. I have thought about trying to find a law student to help me represent myself in court. I feel like it is a pretty straight forward case. I have also thought about small claims, but the maximum is $5000 in NY.

These people owe me $11,000 and I can't let them get away with this. Like I said, I don't want to use all the money up on legal fees. Please help!

[Antigone]

My question involves business law in the state of: New York

Getting My Money Back

I run an Internet marketing company out of Colorado. I was outsourcing some development an Indian company that has a base in Rochester New York. I had ben working with them for several years prepaying blocks of time. I prepaid $30,000 at the beginning of 2008 for 3000 hours of work. Less than 2000 hours were used up in 2008. I requested the balance be sent back, but they claim that I paid for a flat fee for 2008 and that there is no balance.

I have documents from employees within the company and email that show the balance left on the account. There was no contract for the $30,000 specifically, but I can show that in previous years the balance always carried over to the next year.

I do not want to use the balance up in legal fees. I have spoke to attorneys that say it could be expensive to fight. I have thought about trying to find a law student to help me represent myself in court. I feel like it is a pretty straight forward case. I have also thought about small claims, but the maximum is $5000 in NY.

These people owe me $11,000 and I can't let them get away with this. Like I said, I don't want to use all the money up on legal fees. Please help!

This is not an attorney referral service. If you want this to be a DIY project sue for the statutory maximum in court. If this does become a legitimate bad debt after you exhaust your resources you may be able to claim this as a bad debt and write it off on your taxes.

[KeyWestDan]

You have a problem. You will first have to convince a local court to exercise long arm personal jurisdiction or hire an attorney in their state to represent you and sue them there. That would mean you have to travel there for depositions, mediation, trial, etc. IF you win, you could get an award of attorney fees and costs, but you would have to spend all that money upfront. This is not nearly enough money to sue in federal court.
I would write a coherent letter and hire an attorney to send the letter on his letterhead demanding repayment and threatening legal action if they don't. Maybe they will refund it or at least part of it. If that doesn't work, you will need legal advice to go further.

[Jamison]

Thank you both for your input!!

[KeyWestDan]

P.S. NEVER pay that much to anyone out of state, much less out of the country for development work. Pay in much smaller amounts, have a contract with benchmarks, etc.