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Hi, I am new to the forum and was hoping someone could help m e on an issue related to check stop payment. Company A requested me (no writing) to install a software, they gave me the computer to install.
I did that successul. They issued me a check for $xx and a letter This is to acknowledge the receipt of "Computer" owned by us taken by "my name" and a payment of $xxx by check "check #" for the work claimed to have been performed for installing the software. Rgds, Mr X the same day 3 hours after getting the system back, I got an email saying "This is to inform you that I have put a stop payment on the check issued to you until verification of actual work is completed." I find their intention is not to pay. how can I collect this funds? is it valid for me to go to small claim court? please advise. Thanks in Advance, Ashok Kumar |
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Unless you did not perform the duties you were paid to perform, Company A made a boo boo.
You can attempt to cash the check, and if it is dishonored by the bank, then you may immediately sue for the full amount of the check and damages (i.e. bank fees, court costs). In order to win such a suit, all that you need prove is that (1) you are entitled to enforce the check (e.g. you are the payee), and (2) the signatures are genuine. The latter is presumed, however, until the issuer presents evidence that the signatures are forged. If you prove the above two elements (which should be very easy), you are entitled to payment unless the issuer raises a successful defense. Without going through the entire list of defenses, I will assure you that "verification of actual work completed" is not a defense. If you actually did not complete the work, that may be a defense. However, the check cannot be prematurely stopped while the issuer tries to find out. That sort of verification should have been done prior to issuing the check. The nice thing about the fact that you were already given the check is that you don't need to sue for breach of contract, which would be more difficult to prove (you'd have to prove that a contract existed, and that you performed your duties while Company A did not). Last edited by jdmba : 02-27-2007 at 10:37 PM. |
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