Q: hired a company to build a shop on our property. The VP of the company asked us to make part of our payment to the sub.
We hired "Company A" to build a shop on our property. We were dealing the VP of Operation from "Company A". The VP hired a subcontractor to help with the job. Half way through the job the VP asked us (we have written proof) to make one of our payments directly to the subcontractor. The job was not completed correctly and the VP left "Company A". We are now trying to get some of damages fixed, the owner of "Company A" is saying we didn't pay "Company A" the entire sum directly and he is not liable. The owner can not find the subcontractor anymore and the VP took all the contracts with him when he left "Company A". Since we were following the direction of the VP who was speaking on behalf of "Company A" were we in the right to pay the subcontractor as directed?
A: You should contact a lawyer this matter; this looks to be headed towards litigation and it is better to start planning early. As a general rule, if the VP acted as the real or presumptive agent on behalf of the company he would legally bind the company to his decisions. Even if the VP was acting outside of his authority (which is not proven), a 3rd party (you) does not assume a duty to discover whether the VP was acting with approval of the company or not. In short, the company has an issue with its former VP and not you. The assertion that "non-payment" voids liability to the company is simply untrue (it is even worse if you can document that payment occurred to the sub and this was done at the behest of the VP). Again, contact a lawyer because the company clearly has problems and it is better to have a firm understand of the law (and knows when a party is shoveling BS to avoid liability).
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