Legal Question in Business Law in Minnesota

Canceled accounts, liable for damages?

My sister work(ed) as a contractor doing web design for a man

running a small business. She hosted his client accounts using her

own credit card as billing with the understanding she'd be

reimbursed for it as an expense.

Subsequently, she had great difficulty receiving payment for

services, and her last paycheck bounced. She was never

reimbursed for expenses. She didn't want to be liable for any

incurred expenses, so she canceled all client accounts that listed

her credit information for billing.

She got an email from ''his lawyer'' stating that she could be

responsible for damages because she didn't give warning before

canceling the accounts. What are her rights in this situation?


Asked on 9/11/03, 3:02 pm

1 Answer from Attorneys
Ronald Lundquist Law Offices of Ronald Lundquist

Re: Canceled accounts, liable for damages?

THIS RESPONSE CONTAINS GENERAL LEGAL INFORMATION AND NOT LEGAL ADVICE.

Your sister has a potentially complicated situation. It sounds like there are several contracts here, different obligations held to different people or to different organizations. A lawyer would really need to sit down with her and analyze the facts.

The bottom line is who breached a contract with whom. Your sister may have a breach of contract action against those who did not pay her. And the person threatening your sister now may have an action against her for breach of contract.

So it is possible that your sister could be a plaintiff and a defendant at the same time. A contract is breached when a party does not receive their expectation from the contract. Damages are generally measured by how a party was negatively impacted by the breach of contract.

I know this is very general but more specific facts would have to be examined for a more detailed and accurate response. Thank you for your e-mail and good luck.

Ronald J. Lundquist Esq.

651-210-3105

[email protected]

www.rjlundquistlaw.com

Read more
Answered on 9/11/03, 4:47 pm


Related Questions & Answers

More Business Law questions and answers in Minnesota