PDA

View Full Version : Late due earnings "compromise"...is the client being fair or not?


Buster2010
16th July 2010, 07:34
Hi there,

I did some work in December last year for a client. This client is someone who has his own business. He offered me the work as we've worked together various times before in another capacity and we get on really well. It was one of those "Hey I have some work over Christmas for you if you want it...?" situations.

I invoiced him a couple of weeks after the work had been completed. I chased this in February....then April....then May....and he was great in emailing me back pretty much the next day but it was always a bit of a put-off email e.g. "Yeah I'm chasing the agency for the money....." or, after I asked for the agency's number so I could chase them direct and not bother him (I thought I'd be doing him the favour) I received, "No I'll sort it don't worry".

After waiting for an update from him which never arrived, I emailed again in June to try and find out what was happening. He replied telling me there was noone at the office so he's trying to find out where the people from the agency live. With the lack of information I received in response to my increasingly firm but polite emails, I started to wonder if my client had actually been paid by the agency, but is holding back on my earnings.

So I asked a mutual friend for advice, who tells me that my client isn't lying to me. The agency has gone bust and my client is trying to find them. My friend then says the agency going bust isn't my problem because I did the work for my client (which is what I thought), but I can't claim against my client's company because he's wound it up (FYI - he's started a new one). However, if my client can't locate the agency, my client is willing to pay me half of what he owes me out of his new company.

That's the story so you have the full context. My question is:

- Whether my client has wound up his company or not, does he still owe me the full whack regardless? Or is he actually being fair / generous offering me half of my earnings if the agency don't pay up to him, when in lawful terms he's actually fully entitled to not pay me at all in that situation?

Your thoughts are greatly appreciated, cheers :-)

bovine
16th July 2010, 11:23
Who did you invoice? It is relevant because if it was your clients previous company, then he doesnt owe you anything (assuming the company has been "wound up" properly - but you would have know about this presumably). You were owed money by previous company and if previous company has gone, so has your money.

If the client is offering half from new company, you should take it as quickly as possible.

Oh, by the way, if previous company has closed then there is no point your client chasing the agency - they owed money to previous company which is no longer in existence!

You probably need to make 100% sure of who you invoiced and the status of previous company to get to the bottom of this.

Buster2010
16th July 2010, 16:51
That's really helpful, thanks very much.