Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay
My question involves labor and employment law for the state of: Oregon
For the last 3 years I have helped my neighbor who is not internet savvy and can barely read or write sell RV's that he comes up with from various places. I post them online and answer phone calls and emails / texts etc. He pays me 25% of the profits and it worked for a while. I recently sold 3 5th wheels in a 3 day period and the profits totaled close to 30k - He gave me $1,000 and told me I should be grateful because since he isn't a licensed dealer his little side business isn't legal and he doesn't have to pay me because our arrangement was an illegal contract ... really?
Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay
As the SC limit in Oregon is $10,000, you'd have to sue him in circuit court. I'm going to assume you don't have a written contract with him -- that may make it harder to prove your case. You can always get a consult with a local attorney to see if it's worth it to you to sue, however, I have a feeling your best recourse is to refuse to help him again.
Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay
If he profited by 30k then your 25% finder’s fee should be $7500. The $6500 balance should be ok for small claims court. Although his business might be illegal, the verbal contract he made with you was legal. Dragging him into court might be sufficiently embarrassing that he will offer to settle, or he won’t show and you can try attaching his assets.
Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay
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ScammedinOregon
For the last 3 years I have helped my neighbor who is not internet savvy and can barely read or write sell RV's that he comes up with from various places.
Well...that doesn't sound the least bit suspicious....
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ScammedinOregon
I recently sold 3 5th wheels in a 3 day period and the profits totaled close to 30k - He gave me $1,000 and told me I should be grateful because since he isn't a licensed dealer his little side business isn't legal and he doesn't have to pay me because our arrangement was an illegal contract ... really?
I'm not sure what you're asking. However, while you might be able to get a judgment, I have serious doubts about whether you can collect. Is he going to come into court and defend on the basis that he's conducting illegal business -- an illegal business that you were a knowing part of? How do you think you'll collect on any judgment?
Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay
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ScammedinOregon
For the last 3 years I have helped my neighbor who is not internet savvy and can barely read or write sell RV's that he comes up with from various places. I post them online and answer phone calls and emails / texts etc. He pays me 25% of the profits
So, you're an accessory to illegal activities.
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ScammedinOregon
I recently sold 3 5th wheels in a 3 day period and the profits totaled close to 30k - He gave me $1,000 and told me I should be grateful because since he isn't a licensed dealer his little side business isn't legal and he doesn't have to pay me because our arrangement was an illegal contract ... really?
Yeah, really.
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searcher99
Although his business might be illegal, the verbal contract he made with you was legal.
Don't think so. Contracts for an illegal purpose are typically unenforceable. The purpose of the agreement was to circumvent the dealer licensing laws.
Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay
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adjusterjack
Contracts for an illegal purpose are typically unenforceable.
So are you also going to tell the IRS that they have no right to collect taxes on the 30k?
Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay
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searcher99
So are you also going to tell the IRS that they have no right to collect taxes on the 30k?
I doubt "adjusterjack" is going to tell the IRS about anything, but the tax laws are written such that illegal income is still taxable income, so it's not clear what your point here is. The issue raised by "adjusterjack" is very much a valid issue and your apparent categorical statement that the OP's contract is legal despite the other party apparently engaging in illegal business practices may not be correct.
Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay
I don't understand why everyone is assuming that the OP's statement as to the origin of the RVs indicates that the people are in the business of selling illegally obtained RVs.
Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay
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searcher99
So are you also going to tell the IRS that they have no right to collect taxes on the 30k?
Of course they do. Ever hear of Al Capone. He went to prison for tax evasion because the government couldn't tie him to any of his other illegal activities.
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llworking
I don't understand why everyone is assuming that the OP's statement as to the origin of the RVs indicates that the people are in the business of selling illegally obtained RVs.
You are seeing what isn't there. I don't see where anybody assumed that and I pointed out that potentially the illegal purpose of the agreement was to circumvent the dealer licensing laws.
Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay
Again, I am a little confused about the general tone of the responses here. Just because the owner of the business may be operating without the proper dealer's license doesn't mean that the OP knowingly participated in any kind of illegalities nor does it mean that he shouldn't be paid his commission.
I agree that if he sues the guy in small claims court he may have a hard time collecting a judgement, but there is no reason why he shouldn't go ahead and do it anyway.