Legal Question in Business Law in Massachusetts

I have a company that sends a client invoices on a weekly basis. Depending on their demands it can be a non existent invoice because no services were rendered or it can be a substantial bill because we've been there all week. We mail and email them EVERY Monday with out automated system and it shows they received the email and the mailed version a day later.

In the last couple of months for unknown reason a administrative assistant has gone and attempted to "reduce their costs" by adjusting invoices from clients. It has happened across the board from all vendors such as telephone, internet, coffee etc. Multiple times we've gotten cell calls because they have been cut off from internet, telephone or have argued why one vendor hasn't delivered an important product come to find out the vendor hasn't paid and so forth and it's happened multiple times.

The question is, since we are a Massachusetts based company "C Corporation" and the client likes to change invoice amounts WITHOUT prior dispute or authorization, what laws such as fraud, deception, etc can I reference in the MGL to show the client they cannot just change the cost of the invoice and feel like that is what they should pay and can I incorporate it into my terms of service?

I am looking to put a stop to this and or institute a process in which they can dispute it properly.

We have over 800 clients and this is the ONLY one that does this.


Asked on 10/01/14, 3:58 am

1 Answer from Attorneys

It is unclear to me who is not paying what bills. I am going to assume, that a customer is not paying their invoices properly. If you are billing for the service and the vendor products and the customer is supposed to pay the vendor directly, I am not sure what you can do other than to put on the invoice that failure to pay the vendor services and fees may result in suspension of services.

If the payment is made to your company and you pay the vendors, but only pay when you get paid that is a different issue.

Here you should put in your contracts that failure to pay vendor charges can result in the suspension of services. Likewise, you can state that the customer may question the validity of an invoice, but needs to make full payment until a credit is issued.

If you do not have a provision that says all disputes are subject to MA law and exclusive jurisdiction you should do so.

If you wish to discuss this matter, please feel free to contact me.

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Answered on 10/02/14, 9:07 am


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