Business collection issue (lawyer help please) (1 Viewer)

[IC FBGCav]

I have a signed contract from 2009. Long story short we built museum exhibits and completed fabrication in 2010. Moved the exhibits to the uncompleted museum in late 2010(they were rennovating an old building). There was still the installation that needed to be done and that was in the contract for 10K. We thought it was a few months away at that time but it still not been installed. The project was billed by our now retired Project Manager. In early 2013 I discover that he did not bill for 100% fabrication completion only 67%. I notified the museum and they ask for back up to my claim which I provided they next day. After that I was directed by a board member I was in contact with to not talk with the museum manager about the issue. After that she would not respond to my email or calls for 3 months. I finally got her on the phone in late 2013 when I threaten legal action. She directed me to the Chairman of the Board. In early 2014 the Chairman of the Board emailed me that he would paid the amount on 7/15/2014 when the got the funding from the City.

Here is that communication:

[SIZE=11pt]Sent: 03/02/2014 10:35 AM[/SIZE]

[SIZE=10pt]Mr FUJB:[/SIZE]

[SIZE=10pt]The Friends of the Museum is a non-profit 501 c3 IRS group. It is made up of volunteers that serve at no remuneration. The main funding source is an annual allocation from the City of XXXXXX. Secondary funding is acquired by fundraising and general Community "Begging".[/SIZE]

[SIZE=10pt]Our ability to suddenly come up with an unexpected and unplanned for $28,000 is slim and none. As you mentioned, "small business cash flow is always a problem". Let me assure you that 501 c3 non profits have even a more difficult problem with cash flow.[/SIZE]

[SIZE=10pt]I do not have any unencumbered funds that can satisfy you request. I was under the impression for the last (3) years that we had paid our bill per your predecessor , therefore we did not plan, accrue or set aside these monies.[/SIZE]

[SIZE=10pt]The best I can do is to redo the going forward budget based on our allocation from the City on July 1, 2014. I will be able to make your payment by July 15.[/SIZE]

[SIZE=10pt]If this acceptable, please advise me and will seek a Board Resolution to do so.[/SIZE]

[SIZE=11pt]Sent: 03/03/2014 9:03 AM

Subject: RE: Payment Request[/SIZE]

[SIZE=11pt]Hi Mr. XXXXXX,[/SIZE]

[SIZE=11pt] This sounds perfectly reasonable considering the circumstances. The payment arrangement is acceptable. Thank you for your help in this matter and sorry for the confusion.[/SIZE]

[SIZE=11pt]Best Regards,[/SIZE]

[SIZE=11pt]FUJB[/SIZE]

The email written below was after we did not recieve payment

[SIZE=10pt] 7/16/2014 11:09:37 A.M.[/SIZE]

[SIZE=11pt]Hi Mr. XXXXX,[/SIZE]

[SIZE=11pt] We have not received payment and I just was following up to see if it was sent by 7/15 as promised.[/SIZE]

[SIZE=11pt]Best Regards,[/SIZE]

[SIZE=11pt]FUJB[/SIZE]

[SIZE=10pt]Hi FUJB,[/SIZE]

[SIZE=10pt]I have not sent any payment as of yet.[/SIZE]

[SIZE=10pt]The Museum is City owned, building and collection. The City has Funded the Museum $50,000 per year to support the operation and enable the Friends of the Museum, a 501c3 non-profit volunteer organization, to operate the Museum and to raise funds to pay the bills resulting for the resurrection of the Old Fire Station.[/SIZE]

[SIZE=10pt]I told you we would pay the amounts due based on our allocation from the City for July 1, 2014 through June 30, 2015.[/SIZE]

[SIZE=10pt]The City, in its ultimate wisdom, cut all Special Allocations, including the Museum by 55%.[/SIZE]

[SIZE=10pt]I have no good answers as of now. Additionally, because of the City Government actions, most if not all of our other sources of funds, Donor's and Grants, have or most likely have dried up.[/SIZE]

[SIZE=10pt]Frankly, I have seriously doubts the Museum will remain open past this fall.[/SIZE]

[SIZE=10pt]All we can do is continue to try to raise funds that we can operate the Museum and satisfy our creditor.[/SIZE]

[SIZE=10pt]Mr. XXXX[/SIZE]

Now yesterday I researched the funding issue and funds were cut back but the newspaper article from 5/30/14 said the museum has over 150K in cash on hand with 135K allocated for current projects. They got over 30K from the city, which was 20K less than what he said they normally get. If he was sincere in paying I would at least think he would have paid the 8K or notified me he knew their budget was cut that he could not make the payment and work something else out. But he didn't do either so I think he has no intention of paying. This severly pissed me off. I went from being sympathic with them to down right angry as I feel they acted in bad faith.

We are in the same state about 90 miles apart. My question is can I sue a [SIZE=10pt]"501c3 non-profit volunteer organization" [/SIZE][SIZE=10pt]and can I sue them in my county or does it have to be in their county.[/SIZE]

[SIZE=10pt]I also person feel from my dealing with them that is something shady going on with their finances internally, just call it a instinct from being this business 20 years. The is a small city and most of the members of their board have been in city gov't. In fact one just lost a mayor race in 2013. So I want to avoid litigation there if possible as I am sure they have many friends and associates in that county.[/SIZE]

[SIZE=10pt]TIA[/SIZE]

Normally I would avoid going the legal route with a non profit but in this case I think they acted in bad faith.

 

[IC FBGCav]

God I love the internet......just found this is another article.

In the 2013-14 city budget, the XXXXX Museum got $41k+ Not 50K.

 

[Binky The Doormat]

Have your attorney send this article along with your email and copy to anyone that may influence over this guy like whoever he reports to and then whoever that guy reports to. Make sure and include the prior emails that include his big fat lie.

 

[meatwad1]

lol...if he is asking a message board for advice, there is no lawyer involved.

My guess is that you will have to pay a lawyer more than the amount you are owed and even if you win, which is unlikely due to political connections, you might not see any money.

Good Luck.

You will know your chances if somebody agrees to take your case. I am sure it will cost you $300 just to have somebody listen to you for an hour.

 

[IC FBGCav]

lol...if he is asking a message board for advice, there is no lawyer involved.

My guess is that you will have to pay a lawyer more than the amount you are owed and even if you win, which is unlikely due to political connections, you might not see any money.

Good Luck.

You will know your chances if somebody agrees to take your case. I am sure it will cost you $300 just to have somebody listen to you for an hour.

I have hired lawyers in the past for a balance this big. Got a judgement and froze their bank account when they didn't pay the judgement. My lawsuits have always been in our county, I do the ones under 5K myself. If you read, there is no lawyer involved, I need to know what county to hire in. The lawyer will get around 33% but I can sue the museum for their fees as well. Whether I get them or not is a different story.

The last attorney I hired was MT. I don't think he would be much help from the opposite coast. I figured before call attorney around here I would find out what county I need it in. I am sure ones from either county would take the case.

 

[Ramsay Hunt Experience]

lol...if he is asking a message board for advice, there is no lawyer involved.

My guess is that you will have to pay a lawyer more than the amount you are owed and even if you win, which is unlikely due to political connections, you might not see any money.

Good Luck.

You will know your chances if somebody agrees to take your case. I am sure it will cost you $300 just to have somebody listen to you for an hour.

I have hired lawyers in the past for a balance this big. Got a judgement and froze their bank account when they didn't pay the judgement. My lawsuits have always been in our county, I do the ones under 5K myself. If you read, there is no lawyer involved, I need to know what county to hire in. The lawyer will get around 33% but I can sue the museum for their fees as well. Whether I get them or not is a different story.

The last attorney I hired was MT. I don't think he would be much help from the opposite coast. I figured before call attorney around here I would find out what county I need it in. I am sure ones from either county would take the case.

Any lawyer barred in your state could handle that representation. He doesn't need to be in the same county. The lawyer would determine the appropriate venue. You don't need to worry about that. Be up front about the question and the attorney can tell you if her or she is unwilling to travel 90 miles for a few court appearances.

More generally, yes 501© organizations can be sued. Whether or not they'd be able to satisfy a judgment or not is another issue. Its probably at least worth having a lawyer write a letter.

 

[MC Gas Money]

They may have that much cash on hand but not to pay you. The boardmembers kids have to eat dont they?

 

[Chemical X]

I would seek an attorney and let them worry about jurisdiction. you are an unsecured creditor and will legal action against a NFP have reputational risk to you? in my role, I am skeptical of people telling me they have no money.

 

[IC FBGCav]

I would seek an attorney and let them worry about jurisdiction. you are an unsecured creditor and will legal action against a NFP have reputational risk to you? in my role, I am skeptical of people telling me they have no money.

I would of laid out a payment play of 500 month until paid if they were honest......but they have ignored me and lied to me so time to let the lawyers do their thing. Our rep will not be hurt.

 

[Chemical X]

it's very easy to file a complaint and to seek judgement. I would offer them a settlement, maybe a10 or 20% discount.

 

[IC FBGCav]

Just got this



FUJB,
I have no idea where you are getting your numbers. If it is from the Journal, good luck.
The last time they got the numbers right was near the Battle of XXXX 1862.
We were funded $20,613 as opposed to a normal of $45,000.
The cost to run the Museum id $65,600.
You do the math!

 

[IC FBGCav]

My response:

I will believe nothing you say to me. Now the normal budget is 45,000.00, last email the normal was 50,000.00 from the city. I did work with you and acted in good faith which you have not. But this is a matter for the legal system now. Short of having payment Monday morning we can see what that XXXXX Journal and the legal system will think about it. I have everything documented. You have not been honest with us and this is why I am taking the steps I am to proctect our company.


Best Regards,

Chris

 

[Binky The Doormat]

Just got this



FUJB,
I have no idea where you are getting your numbers. If it is from the Journal, good luck.
The last time they got the numbers right was near the Battle of XXXX 1862.
We were funded $20,613 as opposed to a normal of $45,000.
The cost to run the Museum id $65,600.
You do the math!

What a ####!! Very embarrassing to him and his bosses if this were to appear in the paper ...

 

[Tom Hagen]

As a 501©(3) the organization's IRS Form 990 should be public information. That would give you assets and liabilities as of the last filed period to determine of the organization has sufficient assets to make it worthwhile.

 

[Ramsay Hunt Experience]

I wouldn't have even gotten into the issue of the museum's funding. It's irrelevant. They'd owe you money either way.

 

[ChiefD]

If the museum closes make sure you put a claim in for the Dogs Playing Poker painting.

 

[IC FBGCav]

I wouldn't have even gotten into the issue of the museum's funding. It's irrelevant. They'd owe you money either way.

He got into the funding issue not me, he said when they got the funds from the city he would pay. He didn't and then lied about how many funds he got and was given.........all while having 150K in the bank.

You do the math!

This statement by him tells me more than you know.............

 

[shadyridr]

Just steal a picasso

 

[Binky The Doormat]

I wouldn't have even gotten into the issue of the museum's funding. It's irrelevant. They'd owe you money either way.

He got into the funding issue not me, he said when they got the funds from the city he would pay. He didn't and then lied about how many funds he got and was given.........all while having 150K in the bank.

You do the math!

This statement by him tells me more than you know.............

You gotta take this upward and public. This guy needs to be taken out at the knees.

 

[MC Gas Money]

I hope you take this non-profit to the cleaners. They need to get knocked off that high horse thinking that because they are non-profit they can get away with murder.

Not to mention the term "non-profit" really grinds my gears. There is no such thing. None of those places would exist unless someone was making a profit and the people who run those places pull in a tidy sum!