I need some help.
First, a little background:
I am a 37 year old commercial electrician. My partner and I had been invited into business by a general contractor after he was impressed (according to him) by our quality of work. Neither my partner nor I have ever been in business for ourselves.
About two months ago, after finishing up the project that we were doing for the contractor, he called my partner and I out to his truck and pitched an offer to us: He wanted us to do the following:
1) Work under his Virginia Contractors License as subcontractors for him.
2) Start our own company, an LLC, and get a business license so that we could become an electrical subcontractor for him.
3) Accept his offer in which he would allow us to submit him a labor-bid only, of which we would keep 100%. He would make his money by handling the materials used for the job and marking them up to the end-customer.
4) Agree to take the labor-bids for two (2) government post-office contracts, which he represented to be worth $30,000.00 each.
5) Begin making all arangements to legalize our business as soon as possible by procuring the necessary documents (ie: SCC paperwork for incorporation, federal tax-id number, registering with the state of virginia department of taxation, getting a mail-drop, etc.).
He proceeded to explain to us as follows: "I've made my money...I'm not greedy. I would rather have guys working for me than have to deal with just anyone on the electrical. I can see you two are a lot like I was when I was just starting out. I want to help you. I can see the potential for $300,000.00 in the next year or so. I want you to work for me as my electrical division. I will teach you...." and yadda, yadda, yadda...ad nauseum.
It was an amazing offer and, of course, we accepted. Long story short: After being told by him that we were starting on the new project in the next week (this was about 2 weeks after the initial offer), I quit my union job in order to give myself some time (about 3 days) to study the blue prints and get some paperwork and tools together. My partner and I put out roughly $5,000.00 in start-up expenses and equipment.
Now, it's over a month later...and we can't get in touch with him. At first, he was answering his phone and saying "I'm in a meeting...call you back...". Then, he was sick for a week. Never any indication that anything was wrong (and, to our knowledge, there was never anything wrong.). We called his office, spoke to his wife...she assured us that he was just busy and the she knew who we were and that there was no problem at all. That was two weeks ago. He won't even answer his phone for us now...we finally quit calling.
Now, I am out $5,000.00...not to mention the fact that I am flat-broke because I quit my union job IN THE MIDDLE OF A RECESSION on his advice. I have a business...licensed and all...a mail drop that's paid for...new business cards that he approved (they state that our company is a divison of his), and a bunch of expensive equipment that I wouldn't need if I wasn't in business for myself.
He gave us such a spiel...he shook our hands. I called my wife after that first offer and was literally almost in tears as I explained what this man was offering us. It was a life-changing offer...far beyond anything I had ever dreamed of for myself.
After being honest and forthright with this man, he has turned mine and my partner's lives upside down. We are both broke...our wives are heartbroken...and we have no means of income because we can't find work.
Please tell me that his offer and our acceptance constitute a binding verbal agreement. I also have witnesses and can get statements, etc.
Somebody please help me.
Thank you.
First, a little background:
I am a 37 year old commercial electrician. My partner and I had been invited into business by a general contractor after he was impressed (according to him) by our quality of work. Neither my partner nor I have ever been in business for ourselves.
About two months ago, after finishing up the project that we were doing for the contractor, he called my partner and I out to his truck and pitched an offer to us: He wanted us to do the following:
1) Work under his Virginia Contractors License as subcontractors for him.
2) Start our own company, an LLC, and get a business license so that we could become an electrical subcontractor for him.
3) Accept his offer in which he would allow us to submit him a labor-bid only, of which we would keep 100%. He would make his money by handling the materials used for the job and marking them up to the end-customer.
4) Agree to take the labor-bids for two (2) government post-office contracts, which he represented to be worth $30,000.00 each.
5) Begin making all arangements to legalize our business as soon as possible by procuring the necessary documents (ie: SCC paperwork for incorporation, federal tax-id number, registering with the state of virginia department of taxation, getting a mail-drop, etc.).
He proceeded to explain to us as follows: "I've made my money...I'm not greedy. I would rather have guys working for me than have to deal with just anyone on the electrical. I can see you two are a lot like I was when I was just starting out. I want to help you. I can see the potential for $300,000.00 in the next year or so. I want you to work for me as my electrical division. I will teach you...." and yadda, yadda, yadda...ad nauseum.
It was an amazing offer and, of course, we accepted. Long story short: After being told by him that we were starting on the new project in the next week (this was about 2 weeks after the initial offer), I quit my union job in order to give myself some time (about 3 days) to study the blue prints and get some paperwork and tools together. My partner and I put out roughly $5,000.00 in start-up expenses and equipment.
Now, it's over a month later...and we can't get in touch with him. At first, he was answering his phone and saying "I'm in a meeting...call you back...". Then, he was sick for a week. Never any indication that anything was wrong (and, to our knowledge, there was never anything wrong.). We called his office, spoke to his wife...she assured us that he was just busy and the she knew who we were and that there was no problem at all. That was two weeks ago. He won't even answer his phone for us now...we finally quit calling.
Now, I am out $5,000.00...not to mention the fact that I am flat-broke because I quit my union job IN THE MIDDLE OF A RECESSION on his advice. I have a business...licensed and all...a mail drop that's paid for...new business cards that he approved (they state that our company is a divison of his), and a bunch of expensive equipment that I wouldn't need if I wasn't in business for myself.
He gave us such a spiel...he shook our hands. I called my wife after that first offer and was literally almost in tears as I explained what this man was offering us. It was a life-changing offer...far beyond anything I had ever dreamed of for myself.
After being honest and forthright with this man, he has turned mine and my partner's lives upside down. We are both broke...our wives are heartbroken...and we have no means of income because we can't find work.
Please tell me that his offer and our acceptance constitute a binding verbal agreement. I also have witnesses and can get statements, etc.
Somebody please help me.
Thank you.
