sued for non payment

[bonecutter]

I hired a friend to do some work for me in a sales organization. Although he believes he was having all the sales accounts turned over to him, he was only getting paid for the actual work he was doing. He didn't get any new sales, but I did pay him for each project he helped with when the client paid, They were existing clients and he now thinks he should be paid for all the projects they did and not just the ones he worked on. We had no written agreement and I explained to him that he was only getting paid for the jobs he physicially worked on.(This is where the disagreement comes in) He is now suing me in small claims and feels he should be paid for all the jobs that the clients did. Is he entitled to all the sales generated by those projects? As I mentioned these were existing clients that had been doing business wiht me for over 2 years. The 2 paychecks he received were for the work he actually attended and then he refused to give me his SS# to pay him further. I had to then countersue him for a 16,000 piece of equipment that he admits to picking up at a clients and dropping off in my garage( while I was on vacation), which was never seen. The piece of equipment belonged to a manufacture and had been loaned to me for a job. He claims he doesn't have it and put it in the garage. The company who loaned me the equipment will now not pay me for jobs that have been completed, therefore not allowing me to pay him what he has due.

 

[dee_dub]

Although he believes he was having all the sales accounts turned over to him,

Why does he believe that?

Is he entitled to all the sales generated by those projects?

Depends on what the court thinks the agreement between the two of you is. Sounds like it's his word against yours. Bring your sales records of past years and your sales records of jobs he actually worked on to show that he was not a major part of your business and is not entitled to a percentage of the profits from the whole business. If he didn't dispute the 2 paycheques he did receive at the time, that works in your favour as well.

 

[bonecutter]

quotes

I hired a friend to do some work for me in a sales organization. Although he believes he was having all the sales accounts turned over to him, he was only getting paid for the actual work he was doing. He didn't get any new sales, but I did pay him for each project he helped with when the client paid, They were existing clients and he now thinks he should be paid for all the projects they did and not just the ones he worked on. We had no written agreement and I explained to him that he was only getting paid for the jobs he physicially worked on.(This is where the disagreement comes in) He is now suing me in small claims and feels he should be paid for all the jobs that the clients did. Is he entitled to all the sales generated by those projects? As I mentioned these were existing clients that had been doing business wiht me for over 2 years. The 2 paychecks he received were for the work he actually attended and then he refused to give me his SS# to pay him further. I had to then countersue him for a 16,000 piece of equipment that he admits to picking up at a clients and dropping off in my garage( while I was on vacation), which was never seen. The piece of equipment belonged to a manufacture and had been loaned to me for a job. He claims he doesn't have it and put it in the garage. The company who loaned me the equipment will now not pay me for jobs that have been completed, therefore not allowing me to pay him what he has due.

He didn't understand that he was not going to get paid for all business that had already been established. We never really had an agreement and I was only trying to help him get established in the business,as I was planning to stop doing this line of work in the future. I am a 1099 employer and employee myself. He only picked up one new project in 6 months and he was paid for this project, as well as one other he had worked on. This was consistant to what I had told him, but he contacted the manufacture directly and told them he was taking over all my business and to send him all the invoices.