Stop-payment on checks illegal??

In Seattle, I hear it flies just like income tax evasion.

 

You are being worked over by a grinder. He won’t pay unless you force him to, all this stuff about needing the cheque back is B.S., he got it in the mail a week ago and threw it away. Soon he won’t take your calls.

In all probability you will have to sue him to get your money - it all depends on how tough he is. I suggest you call other service providers and ask what his payment record is like, at the very least it will be educational, at best it will help you get your cash because someone might already have a plan. Grinders are awful, but they are also common. Some people, who seem quite nice, live with the assumption that the rest of society should be their slave labor, in fact they pride themselves on nonpayment. They are horrible, and yes, I’ve met loads.

So, your next step is to call him and tell him that the matter is going to go to your lawyer because your business needs the money, his cheque is vital to your expansion plans, and while you would prefer not to handle it this way, because you enjoyed the job, he is leaving you with little choice. In all probability the phone conversation will be recorded from his end. He will either offer you 50% then and there or give you his lawyer’s address, depending on how mean he is.

DON’T TAKE THE 50%!!

You will never get it, any more than you got the last cheque. Thank him but say unless the full amount is couriered over to you in the form of a cashiers cheque or bank draft by the close of business tomorrow you have no alternative but to proceed with your normal collection procedures. (The word ‘normal’ is important.) Be polite and calm. I

If nothing happens by the next day, then you will need a lawyer’s help. Discuss fees with the lawyer first, otherwise he can charge like mad and then help himself to part of the settlement on a ‘fair fee’ basis.

Once he takes the case your lawyer will write a letter, referring to the contract and stating that payment has not been made with in its terms (The canceled cheque is a red herring, it is best ignored in this first letter). How things go after that depends on the grinder’s response. If he wants to pay over time have your lawyer write a one page document with payment dates that he must sign right away. That will be really easy to collect on, or sell to a collection agency. If there is no reply to your lawyer's letter, then you will have to sue him.

Suing someone is not the end of the world. Before you get into the ring you must ask yourself a question: Are you posturing, or are you going the whole way? I would recommend posturing. In California takes about $250,000 in court fees to really sue someone, and then they can always appeal the decision and delay payment .
It is a bucket load of money, but don’t worry, all is not lost. The grinder knows the cost of court work, and if the sum he owes you is smaller than the legal fees, he will call you and ask to settle pretty smartly. This is where the posturing comes in because you will sue him for as much as you can, knowing you will settle for cents on the dollar. How high can you go? Well, the billed amount is only the first floor. Most people tack on information that they needed the money to close on some deal that is now worth more than Enron in its prime. This is done through an affidavit. Affidavits are sworn statements, and lying on them is regarded as contempt of court, you can be fined and go to jail if you don’t tell the truth. Grinders always lie on their affidavits and never get punished, but you had best be truthful because, well, you’re the good guy, and because you will be put in jail. Think about it, there is always something you could have done with the money. There is also the damage to your business and health, but that is foggy stuff, so stick to something you can hang your hat on.

Do not be surprised if he sues you in return. His suit will be based on lies that he knows he will never have to prove, because he intends on settling.


Collecting money from grinders is a dirty business. I’m sorry that it has happened to you, but living in L.A. you had to meet one sooner rather than later.

Good luck!

 

Good advice there Kram. If the amount of the check is not that great than if you press it it'll fall under small claims court. You can do it yourself. Send an attorneys letter first then take it from there. This guy is definately stringing you along.