Legal Question in Business Law in California

i was overpaid by 20K over 6 mo.

i started work as a dentist at a large corporation about 6 months ago.

now, they tell me that they have overpaid me by 20,000 and want it back.

I had no way of knowing that i was being overpaid. i would have never worked there if i knew i was not being paid well.

do i have to pay them? how much would it cost them and me to go to court if it comes to that?

thanks, matt


Asked on 4/29/04, 1:51 am

3 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: i was overpaid by 20K over 6 mo.

Well, the law on overpayments is very fragmented and not easily explained. The questions that may arise include who was aware of the possible overpayment and when; what was a "fair" payment; whether there was a mistake in forming the contract in the first place; if so, whether the mistake was "unilateral" or "bilateral," the extent to which the negligence of one or the other party contributed to the overpayment or delayed its discovery; whether the recipient innocently relied upon the validity of the overpayment and "changed his position" or "relied to his detriment" on it, etc.

The bottom line is probably that the question is one of what is fair and equitable rather than who is "right" under a super-strict reading of the contract.

Guessing on the economics of coughing up the money voluntarily versus resisting and possibly having to defend (and maybe losing) a lawsuit is, as I suggested, a guess. An important factor is whether the contract contains an attorney fee clause. If it does, it will be upheld as a two-way proposition; whoever wins is entitled to recover his fees, regardless of the language of the attorney-fee clause. Such clauses therefore put a damper on unmeritoriuos suits brought to pressure the other side into quick settlement.

You are in a bit of a tough spot because many attorneys qualified to review the contract and give you a quick read-out in the context of an initial free consultation are too well booked to do free consultations in any depth. I suggest you look for one in your community.

Overall, based on the limited facts given, I would rate your chances of prevailing at less that 50%, but not much less!!! I would not suggest caving in without some effort to analyze your prospects, to resist, and to defend.

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Answered on 4/29/04, 2:32 am
Larry Rothman Larry Rothman & Associates

Re: i was overpaid by 20K over 6 mo.

We can defend you or try to settle the case. We would need to review any paperwork, pay stubs, and documentation you have with regard to your pay. Please call us at 714 363 0220.

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Answered on 4/29/04, 10:28 am
Joel Selik www.SelikLaw.com

Re: i was overpaid by 20K over 6 mo.

What were you to be paid and how were you overpaid? Cannot analyze with information given. Additionally, is there a written agreement? Does it provide for Arbitration and or Attorney Fees.

Joel Selik

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Answered on 4/29/04, 10:29 am


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