Legal Question in Business Law in Louisiana
Disputed Billing
mfg and deliver concrete to businesses and individuals on A/R and COD basis. We ''poured'' a job that took 18 cubic yards rather than 15 per the original estimated amount. Customer disputed the amount in writing, we did not respond. Three questions:
1. Can customer withhold payment of all charges?
2. If we accept payment of only what he was originally quoted is that all we can expect to collect?
3. Is there a statute of limitations on collectiblity of the charges?
2 Answers from Attorneys
Re: Disputed Billing
The following general answer shall not create any attorney-client relationship concerning this or any other matter.
1. The customer should, absent other circumstances, owe at least for the 15 yards that was estimated.
2. Not unless the payment is made in the form of a settlement offer or with a check and/or correspondence that indicates it is in full payment.
3. Yes. Three years, but there is a much shorter period in which to file any lien and the initiate a lawsuit on the lien.
Re: Disputed Billing
I'll try to answer your questions as best as possible with the facts you've presented...
#1: A customer cannot withhold payment on all charges for arbitrary reasons. You and the customer have entered into a contract, and each of you have obligations under that contract.
Since the customer is disputing the work performed, it seems it will be his position that you have not performed as required. As such, he is refusing to perform.
In general, this will not likely hold up in the long run. If you guys poured a job and performed work and services, you are entitled to be compensated for that service.
The question to be decided, of course, is "how much."
Unfortunately, the old saying that "possession is 90% of the law" is a bit true. The reality you face is that you'll be chasing the customer for payment, and the chase will cost you time and expense. Your practical consideration is this: Will it be worth it?
Legally, if you performed work and performed as obligated, you'll be entitled to compensation.
#2: This depends. If your quote was an estimate, and based upon a "price per cubic yard," I would argue that you're entitled to be compensated for the entire 18 cubic yards. If your quote was a lump sum quote, on the other hand, you might have a more difficult time (unless there is a reason you quoted 15 cubic yards instead of 18).
#3. Yes, and this depends as well. If your contract is an "open account" - doubtful, but may be - you have 3 years. If it's a general contract, you have 10 years. If you filed a lien (or will file a lien), you should file your suit within 1 year.
You should consult with an attorney about the statute of limitations and to discuss some of your options, as there may be other facts that affect your situation.
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