If I had a contract to have work done on my boat and paid $5000, how can I get my money back since the work has never been done?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I had a contract to have work done on my boat and paid $5000, how can I get my money back since the work has never been done?
It was a family operated business. The lead person at the business died 6 months ago (husband). I was told by the wife, who took over the operation they would still do the work, they since have shut down the business and no work has been performed; I have not been reimbursed my $5000. They are incorporated. What do I do to get my money?
Asked on November 3, 2015 under Business Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
In theory, you can sue them for the return of the money. You would sue on the basis of breach of contract (not doing what they contractually--whether the contract was written or oral--agreed to do) and unjust enrichment (being inequitably and improperly "enriched" by keeping your money without doing any work for it).
However, if the business was a corporation, you can only sue the corporation itself, not the owners; that means that if the company has been shut down or is insolvent/inactive, even if you win the suit, you may not get your money if there is no money there--a court judgment does not make money appear where there is none. (And if the corporation has been dissolved, there's not even anyone left to sue, just like you could not sue a person who passed away.)
You could *try* to "pierce the corporate veil" and sue the family owners directly IF you believe that the corporation was essentially pre-textual; that is, it didn't really have an independent existence and they comingled personal and corporate funds. But be advised, this is very difficult to do and is only rarely successful; the strong presumption in the law is that corporations are valid.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.