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Do you help small owned company get payment from a customer after work has been done ?

New Jersey

I own my own company and did work for a customer that paid deposit with a check. i deposited the money but check was canceled by customer and i was never paid the deposit . withing the 3-5 business says after depositing the check i did majority of the work and just needed to put a finishing coat on floor .(it is a flooring company) after making him aware that deposit didnt go through he then told me i had to pay him to pick up my tools and that he would get someone else to finish the job i pretty much had finished . i never recieved any payment for this job.

4 replies

Mar 4, 2021
It sounds like you may be able to make a fraud claim. There is certainly a breach of contract claim; and he can't hold your tools hostage. There would be a need to gather some additional information, but the initial course of action may be to file a Construction Lien Claim.
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Mar 4, 2021
One, other issue, her!: N.J.S.A. 2C:21-5 A bad check worth less than $200 is a disorderly persons offense in New Jersey. Penalties include 6 months in jail and a fine of up to $1,000. If the check's value is between $200 and $1,000, the offense is a fourth-degree crime (felony) with the potential for up to 18 months in prison and a $10,000 fine. If you Google NJSA and that statute number, you can review more. The problem is, if not a lot is at stake, it probably does not merit hiring an attorney - from your cost perspective. We understand that, of course. it's frustrating. If the amount in dispute is under $15,000, you can file a lawsuit in your county's Special Civil Part. That court is very litigant-friendly and there are forms and check-boxes to help you through.
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Mar 4, 2021
'apologies for the typo
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Mar 8, 2021
You have a few options at this point. First, you could consider filing a lien. The deadline for when you have to start that process depends on whether this is a residential (60 days from last day of work) or commercial job (90 days from last day of work). You can also send a letter demanding payment and threatening to file a lien and/or legal action. The cost of taking these actions should be balanced against the amount of money you are owed under the contract. If this is a home improvement project, then it will be important to ensure what aspects of the comply (or do not comply) with the Consumer Fraud Act and Home Improvement Practices Act, as a homeowner could use these laws against you in any legal proceeding.
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