Page 1 of 2 1 2 LastLast
Results 1 to 10 of 14
  1. #1

    Angry 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?

  2. #2
    Join Date
    Jan 2016
    Posts
    451

    Default 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.

  3. #3
    Join Date
    Nov 2009
    Posts
    861

    Default 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.

  4. #4
    Join Date
    Jul 2018
    Posts
    2,345

    Default Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay

    Quote Quoting ScammedinOregon
    View Post
    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....


    Quote Quoting ScammedinOregon
    View Post
    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?

  5. #5
    Join Date
    Mar 2013
    Posts
    17,919

    Default Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay

    Quote Quoting ScammedinOregon
    View Post

    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.

    Quote Quoting ScammedinOregon
    View Post

    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.

    Quote Quoting searcher99
    View Post
    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.

  6. #6
    Join Date
    Nov 2009
    Posts
    861

    Default Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay

    Quote Quoting adjusterjack
    View Post
    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?

  7. #7
    Join Date
    Jul 2018
    Posts
    2,345

    Default Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay

    Quote Quoting searcher99
    View Post
    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.

  8. #8
    Join Date
    Oct 2006
    Posts
    16,191

    Default 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.

  9. #9
    Join Date
    Mar 2013
    Posts
    17,919

    Default Re: Dispute Over Commissions - Illegal Business Says He Doesn't Have to Pay

    Quote Quoting searcher99
    View Post
    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.

    Quote Quoting llworking
    View Post
    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.

  10. #10
    Join Date
    Oct 2006
    Posts
    16,191

    Default 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.

    1. Sponsored Links
       

Page 1 of 2 1 2 LastLast

Similar Threads

  1. Business Disputes: Dispute Between Business Partners
    By anami in forum Business Law
    Replies: 4
    Last Post: 10-19-2013, 10:30 AM
  2. Custody and Visitation Issues: Mediating a Custody Dispute With an Illegal Alien Father
    By GMomma in forum Child Custody, Support and Visitation
    Replies: 12
    Last Post: 07-04-2012, 12:29 AM
  3. Business Disputes: LLC Business Dispute in California
    By Mission in forum Business Law
    Replies: 1
    Last Post: 04-01-2010, 04:49 PM
  4. Business Disputes: Dispute Between Business and Call Center
    By LoveCourt in forum Business Law
    Replies: 2
    Last Post: 03-27-2010, 07:21 PM
  5. Business Disputes: Business Dispute With A Client That Has Moved
    By PennyWise in forum Business Law
    Replies: 3
    Last Post: 02-27-2007, 07:17 PM
 
 
Sponsored Links

Legal Help, Information and Resources