My question involves business law in the state of: New York
I own a small NY corporation, and I utilize other companies as independent contractors to help me with my business. My services to my clients include a money-back guarantee on some services. Recently, I client asked for their money back as per their contract with me.
When I reviewed their account, I thought they had failed to pay me a portion of their fee under our contract. When I spoke to my clients, i discovered that my independent contractor had arrenged for the clients to pay them directly. They told my clients that the payment was going to me, when in fact, it went directly into their bank account (their account is under a completely different business name than my own, and the contract notes that all payments are to be made to me).
I paid the clients back the money thay paid me, but now they want me to also pay them the money my IC took from them. Am I liable for this? My IC claimed the money was going to me, but the clients receipts show a different company name (my IC's company).