I am a general contractor who conducted water damage restoration and pack out services to a home. This claim was paid through the home-owner's insurance and a pack out check was issued directly to the home owner as a 2 party check with his name and the public adjuster we hired. Homeowner cashed the check with out the public adjuster's authorization in December 27, 2019. Our company just found out about the situation and the homeowner refuses to pay us for the pack out services and used that money to remodel his house. Insurance companies usually take a while to issue checks for jobs done and once they're issued payment is required immediately. The pack out has been completed. However, the pack in was not completed since the owner KNEW he had the money and wasn't going to pay, he took all his belongings before hand. How do I go about the 20-day preliminary notice? Is it too late since payment was issued in December without our knowledge?