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Lack of payment could lead to business litigation

| May 14, 2019 | Business Litigation

Many business owners know that running a company could see its fair share of legal issues. Disputes could arise that can only be resolved through the filing of a lawsuit, such as those sometimes needed to collect on unpaid invoices. Certainly, other attempts to collect can be made, but for difficult situations, business litigation may be needed.

Florida readers may be interested in such a case currently underway in a neighboring state. Reports indicated that a woman worked as the chief diversity officer for a sports complex project that was set to begin two years ago. From Nov. 2017 through March 2018, the woman worked as a consultant on the project with the intention of receiving payment for her services. However, a co-founder for the project stated that a formal agreement regarding her role on the project was never created, and as a result, he believed the woman was volunteering her time. Still, he reportedly agreed to pay her as a sign of goodwill.

After the lack of payment, the woman filed a lawsuit for breach of contract and fraud against the partners associated with the project. According to reports, she sent invoices, a formal demand letter and attempted negotiations to reach a settlement, but all efforts to receive payment were unsuccessful. The report also noted that others have come forward to indicate that they did not receive payment for work completed on the project and could join the case.

It can quickly become tiresome to attempt to collect payment from those who seem unwilling to pay. Though many Florida business owners likely want to exhaust their available options for debt collection before taking legal action, it may come time to take that next step. If so, interested parties may want to discuss the possibility of business litigation with their legal counsel.