Need your opinion - Distributor trying to gouge me.

[ScottLewis]

Hello, I'm usually just a lurker here but joined due to a touchy situation.

A company that distributes european manufacturing equipment in the U.S. sold me roughly $20K worth of equipment. It was all paid for and shipped to me back in May. Just last week, they began calling me and saying there's an outstanding balance and that I owe them $2.5K.

They were basically supposed to "hook me up" on this deal, because in a prior deal a year ago, they sent me a damaged piece of equipment and I went through hell to get it fixed up on my own. Now they're not standing by their word and want to charge me full MSRP.

But here's the thing... they are a small company, fewer than 20 employees, that operates 1500 miles away from me. All of the dealings occured over the phone, and they were unrecorded. The salesman who I dealt with used his Verizon cell phone for all his business deals. I never signed a single receipt/contract/paper. So now it's my word against theirs.

Legally, do they even have anything on me?

P.S. The president of the company used to sell insurance. Figures.

 

[KarenMarie]

do you have a reciept?
is it marked PAID IN FULL or show a REMAINING BALANCE?

if neither... i would guess that they dont have much to stand on. by all appearances, it looks like you paid your bill... unless they can prove otherwise.

 

[FoBoT]

i don't know

call bill handle

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[slycat]

which european country...watch out for hitmen.

 

[IHateMyJob2004]

Originally posted by: KarenMarie
do you have a reciept?
is it marked PAID IN FULL or show a REMAINING BALANCE?

if neither... i would guess that they dont have much to stand on. by all appearances, it looks like you paid your bill... unless they can prove otherwise.

Concur. If they cashed the check, that's considered payment in full unless there is other peoperwork to further support their argument.

 

[Future Shock]

Let us get this straight: you bought $20k of equipment with NO contract, NO letter of agreement, NO estimate, and/or NO bill???

They are charging you $2.5k for your business education...consider it cheap, and learn.

Expect them to file suit against you, in State court in THEIR state. Expect to have to hire an out of state attourney. If you do not respond, they will get a summary judgement against you, and then file to collect if from you via a lien or other means.

I don't mean to sound harsh...well, I think someone should speak up though. What you did was not "best practice," to put in mildly. In fact, if an emplyee of mine did that, I might fire him for lack of common sense.

Future Shock

N.B. - call their CEO, after you fax him any records you have of the costs you incurred to fix their previous equipment. Get him on a conference call with his salesman - tape record the entire call. Ask the salesman point blank if he made you a certain offer of a discount as compensation for the repairs. If he denies it, ask to speak to the CEO alone. Tell him directly that you DID have an agreement, that you are a known customer, and that if they press this bill it will be the LAST payment they ever recieve for any order from your company - and that you will be filing a complaint with the Better Business Bureau in their locale, AND any trade organizations you can think of. Tell him that you expect either a bill for that amount, which will result in those actions, or a statement showing the amount for that equipment shipped xx/xx/xx date was paid in full - by tomorrow. Thank him for his time, being firm but polite. Then hang up. Good luck.

 

[chimmytime]

Do they have proof you received it?

 

[ScottLewis]

Thanks for the replies.

Some more info:

- I have no receipt, certainly not one showing REMAINING BALANCE

- I have nothing for them to put a lien on. I have no mortgages, business loans, car loans, etc. Nothing.

- They did send me an invoice in an email. I stated that I did not agree to that invoice to the price desired. I told them that I would only agree to that price if one of the pieces of equipment was upgraded to a more expensive model. They agreed, written in email, but never wrote me a new invoice.

- They do have proof that a delivery was made by the truck company.

I'm confused about this whole situation. I didn't know they can sue me out of state. I thought they had to come over to my state to sue me? I live in CA, they live in TX. All of this seems a bit ridiculous. They claim that the accountant "forgot" to charge me. Can they do that? It would seem that any company can just forge a few papers and then start charging their customers at their will.

 

[Future Shock]

Originally posted by: ScottLewis
- They did send me an invoice in an email. I stated that I did not agree to that invoice to the price desired. I told them that I would only agree to that price if one of the pieces of equipment was upgraded to a more expensive model. They agreed, written in email, but never wrote me a new invoice.

- They do have proof that a delivery was made by the truck company.

I'm confused about this whole situation. I didn't know they can sue me out of state. I thought they had to come over to my state to sue me? I live in CA, they live in TX. All of this seems a bit ridiculous. They claim that the accountant "forgot" to charge me. Can they do that? It would seem that any company can just forge a few papers and then start charging their customers at their will.

Please post these emails, or put them in a PM to me if you would like. I DO buy quite large sums of computer equipment as part of my business (like six and seven figures), and I have a bit of experience - but IANAL, of course. But these emails could show that they agreed to your terms, depending upon IF they quoted your orignal email in their reply,and what phrasing they used. Let's see...you may have an implied contract on your hands...

FS

N.B. - most business Terms and Conditions on their contracts EXPLICITLY state that any dispute will be handled in a court in their state, unless you negotiate a change in advance. If they are incorporated in Delaware, there is a special commercial court system designed just for handling business disputes of this nature (one reason so many businesses are incorporated there). IMHO, this is probably not worth going to court over...but let's see how strong a hand you have to play.

 

[kranky]

Doesn't sound as though either side specified any Terms and Conditions.

 

[ScottLewis]

Originally posted by: Future Shock
N.B. - most business Terms and Conditions on their contracts EXPLICITLY state that any dispute will be handled in a court in their state, unless you negotiate a change in advance. If they are incorporated in Delaware, there is a special commercial court system designed just for handling business disputes of this nature (one reason so many businesses are incorporated there). IMHO, this is probably not worth going to court over...but let's see how strong a hand you have to play.

They never showed me this contract and therefore I never signed one. That's gotta be worth something? Otherwise I can sue them from my state a put a lien on them, correct?

Why else would a landlord make a tenant sign a lease form? Why else would car dealer make the buyer sign a bunch of forms? Isn't it to validate a contract? I never validated any of theirs.

 

[Future Shock]

Originally posted by: ScottLewis

Originally posted by: Future Shock
N.B. - most business Terms and Conditions on their contracts EXPLICITLY state that any dispute will be handled in a court in their state, unless you negotiate a change in advance. If they are incorporated in Delaware, there is a special commercial court system designed just for handling business disputes of this nature (one reason so many businesses are incorporated there). IMHO, this is probably not worth going to court over...but let's see how strong a hand you have to play.

They never showed me this contract and therefore I never signed one. That's gotta be worth something? Otherwise I can sue them from my state a put a lien on them, correct?

Why else would a landlord make a tenant sign a lease form? Why else would car dealer make the buyer sign a bunch of forms? Isn't it to validate a contract? I never validated any of theirs.

Hard to say. They sent you equipment, they can show emails from you asking them to send it with an offer to pay, and you signed for it and then wrote a check. Tough call. More importantly, there is nothing YOU have to STOP them from filing in their state! You can try to counter sue in your state, but by the time you have done that you will have spent close to $1000 in legal fees to start. And you could still lose...bringing your bill to $3.5k.

I'm not sure what you think you can sue them for...any suit you file almost has to be a counter suit, or a defensive suit against what they file. They did not breach any contract with you, they sent you the equipment...but again, IANAL, so...

FS