Legal Question in Business Law in Georgia

The operations manager of my small business was duped by a company for paying for their "services" to "help us in growing our business". Their people rushed into our offices, spent about two hours looking through our financial records, and left. Weeks went by and numerous phone calls were made, but no one ever returned any calls. Then one day, we received a bill for $100,000. Yes, one hundred thousand dollars. When called to dispute the bill, we were transferred to their "legal department". We were told that whether or not we were happy with their service we were still legally obligated to pay the bill. My business manager then set up an arrangement where she sent them The total amount, in post-dated checks. Recently we were contacted by the Illinois State Attorney General's Office and asked to become participants in a lawsuit against this company. Since there were no real services ever rendered by this company and because we are now involved in litigation against this company, do I still need to pay them?

Asked on 5/05/10, 6:34 am

3 Answers from Attorneys

Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

You should consult with a business attorney and have him/her review the agreement to get a comprehensive answer. However, it seems there may be sufficient reason to not pay them.

If you would like to discuss any issues further, please feel free to contact my office. The link to my contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 5/10/10, 6:41 am
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

First of all fire your business manager for sending post dated checks, as no competent employee would do that. Then sit down with your business attorney (you do have one, don't you?) to review this case and determine what effect your payment had on things and what you should and should not do. You should not be operating a business using an online forum as your "lawyer."

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Answered on 5/10/10, 6:42 am
Edmund Burke Edmund B Burke, Attorney at Law

Pay them $100K for two hours work when they never even returned your phone calls and are being sued by Illinois for some variety of fraud or deceptive practice? Don't do that, please. Doesn't it seem pretty clear that this "business" is a rip-off?

If you would like to discuss the various aspects of this, feel free to email me. Sounds like you agreed to join as a plaintiff in Illinois as well and that creates additional issues.

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Answered on 5/10/10, 8:05 am

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