Vendor Filing a Claim Over Nonpayment

Question:

We have a lawn maintenance company who has been doing maintenance for us for about 6 years. We have a new HOA board and a new property management company and have encountered some financial issues. This particular vendor has not been paid for services rendered during the month of October. He’s quite angry and wants to file against the former property management company and the former board. Our new board feels that the lawn maintenance company did not fulfill their contract, however nobody ever notified him of that and they continue to pay him. Can we withhold payment? Can he file a claim against us ?

– Frances

 

Answer:

Hi Frances,

Kindly review the contract with the lawn maintenance company to see the terms regarding payment and breach of contract. This may clarify whether or not the vendor is entitled to the payment and whether or not notification was required. The board may need to provide evidence of their claims of nonfulfillment as well. For further guidance, kindly consult a lawyer.

 

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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