I worked in public accounting in Texas. The firm I worked for had an ESOP plan and other employees and I were participants in this plan. They terminated the plan and we became 100% vested. They issued each of us a 5-year, interest bearing note for the value of our vested amounts. None of us work there any longer and the notes have about 2.5 years left before they are retired. The notes, per a signed letter from a partner, are NOT secured as required by ERISA and IRS laws and regs (I suppose this could result in the ESOP being considered a non-qualified plan, but who cares since it's terminated?). The partner stated that the notes are a "general obligation" of the corporation (firm is an S-corp, so the "partners" are actually S-corp shareholders).
The employer is chronically late with the payments. This quarter, they are 13 days late and there is no sign of a check, which have always come certified mail. There's no chance I missed mine because the other employees have not received their checks, either. The receptionist at the firm says that the checks will be out next week, but this is her guess and not from any of the partners. The partners will not return phone calls from any of us. Each "note" we received was signed by a partner and included a payment schedule and the latest payment was due June 30, 2007. It's now the 12th.
1) How long can they wait to make payment? The note does not specify what constitutes an event of default and does not mention what happens if payments are late. Are there any universal Federal or Texas laws that spell out what constitutes a default?
2) How can I force them to pay more timely? I suspect I'm screwed on this point, but would like any input. This is an interest bearing note, and they should have to pay interest when they're late, but the note is silent as to this point.
3) If they decide NOT to pay any further on the notes, the group has decided that we will hire an attorney to sue the bejezus out of them. What other damages might we be allowed to sue for outside of legal and court costs?
None of us trusted the partners while we worked there, and we certainly don't trust them now. They were crooks when we worked there and continue to be so (saw lots of tax fraud committed while I was there-fortunately they never made me sign one of those returns).
I would prefer to just call the note and have them pay off the balance before they decide to just not pay on the note anymore.
The employer is chronically late with the payments. This quarter, they are 13 days late and there is no sign of a check, which have always come certified mail. There's no chance I missed mine because the other employees have not received their checks, either. The receptionist at the firm says that the checks will be out next week, but this is her guess and not from any of the partners. The partners will not return phone calls from any of us. Each "note" we received was signed by a partner and included a payment schedule and the latest payment was due June 30, 2007. It's now the 12th.
1) How long can they wait to make payment? The note does not specify what constitutes an event of default and does not mention what happens if payments are late. Are there any universal Federal or Texas laws that spell out what constitutes a default?
2) How can I force them to pay more timely? I suspect I'm screwed on this point, but would like any input. This is an interest bearing note, and they should have to pay interest when they're late, but the note is silent as to this point.
3) If they decide NOT to pay any further on the notes, the group has decided that we will hire an attorney to sue the bejezus out of them. What other damages might we be allowed to sue for outside of legal and court costs?
None of us trusted the partners while we worked there, and we certainly don't trust them now. They were crooks when we worked there and continue to be so (saw lots of tax fraud committed while I was there-fortunately they never made me sign one of those returns).
I would prefer to just call the note and have them pay off the balance before they decide to just not pay on the note anymore.
