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  1. #1
    Join Date
    Jan 2012
    Chicago, Illinois

    Default Customer Withholding Insurance Co. Payout for Service Repair Work Completed

    My question involves business law in the state of: I am the owner and service technician of an established commercial refrigeration co. I inspected, acquired all parts and
    equipment needed and provided the required work to repair a walk-in cooler refrigeration unit as verbally agreed to by the customer. After work was 100% completed to the
    customer's satisfaction, I was directed to submit all paperwork to an insurance company that " covered " the business and was empowered to complete a payout for my work.
    After dealing only with the primary " information gathering service " by phone and fax, I found out the claim was settled completely and that my amount submitted was
    paid in full, with no questions or comments. I waited a reasonable amount of time and never heard from customer. Phone calls [ to voicemail ] and text messages went
    unanswered. The customer finally notified me of their decision to make good and we met. I was told, point blank, that they had no intentions of paying my bill in full and want
    only to remit approx. 30 %. This amount was the original " guesstimate " of damage without any actual teardown or testing. The insurance company agreed with my final
    billing amount, which included breakdown costs, report of reason for failure and applied credits as I saw fit.
    As of today I am out the total amount of 4800.00 with no more offers to just forward the amount the insurance co. paid out, the entire 4800.00.!!!!
    So, my question is this. Since the customer validated the work I supplied and signed off on the insurance claim, and since the insurance co. agreed with my numbers
    and, WITHOUT ANY INQUIRY OF LOCAL AVERAGE INDUSTRY COSTS, ETC. and paid in full.....where do I stand??? Is this misappropriation or misdirection of intended funds
    and therefore indicate insurance fraud? If so is there a time limitation to seek payment in full using the insurance point ?
    I am SOOOOO tired of being cheated out of legitimate receivables, I am ready to throw in the towel. Thank you for any guidance. By the way, work performed in
    Chicago and insurance co. in Conn. If it matters ???

  2. #2
    Join Date
    Sep 2011

    Default Re: Customer Withholding Insurance Co. Payout for Service Repair Work Completed

    Sue the customer and put a mechanics lien on their cooler.

  3. #3
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Customer Withholding Insurance Co. Payout for Service Repair Work Completed

    Are you familiar with the Mechanic's Lien Act? If the filing would still be timely under the statute, that's probably the place to start.

    Illinois also permits corporations to sue in small claims court. Here's a brief introduction.

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