Q: I created and drafted a marketing and advertising agreement with a client. after 4 months of billing they charged back
The client charged back stating "goods were not received" and "was not aware of the transaction" ... I have over 100 pieces of evidence including lead reports, call tracking recordings of incoming leads, social graphics used to post on social media, text messages between owner and I as well as with store managers who we communicated with daily, screen shots, the contract and CC authorization coming from their accounting department.... Now Square (our payment processor) is trying to charge a separate business account we own for the dispute (not resolved yet) and causing incredible damages.
What can I do to file back against the business and the owner who is trying to defraud us of our services? Can I go after the entire contract? is there a way to sue them for damages and also win this dispute?
Thank you.
A: It sounds like you may have a good case, which if it can't be resolved through Square, you may be able to pursue the former customer in court. Much of your ability to win depends on any contract(s), and what was said in emails, text messages, etc., together with what services were provided. Legal claims against the former customer might include fraud, negligent misrepresentation, breach of contract, or unjust enrichment, among others. Since the client is a business, there may be a FDUTPA claim as well. If you're interested in discussing this further, I would welcome the opportunity to speak with you. 202-713-5292.
A:
After practicing small business law and banking law for over 41 years, it comes as is no surprise to me that businesses using any third party intermediary other than commercial banks to collect money owed from customers eventually come to regret doing so. Why? Because non-regulated entities like PayPal and Square have to eat fraudulent charges while commercial banks carry insurance that makes them whole in the event of payment squabbles like this.
As far as I know, there is no non-legal solution to the common problem you have. Your "client" has probably severed all ties to Square, which leaves Square no alternative other than to try charging everything back to you. Carrying an open account with Square, PayPal or any over similar non-regulated intermediary leaves businesses vulnerable to this kind of "legal scam."
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
