Personal Loan not fulfilled looking for some advise please

Dustin

New Member
Jurisdiction
Minnesota
Hello, I'm hoping someone might be able to offer some advise for my pretty unique situation. I own a trades related business and about 4-5 months ago I decided to restructure the business and to help a couple long standing employees start their own businesses doing what my business does. The purpose of this was to allow me to focus more on product sales, to allow them to make more money since they helped me get to where I am, to take some of the liability away from me, to minimize my overhead, minimize my insurance rates etc.. The plan was for these guys to sub contract some jobs from me and to allow them to start taking on jobs from others.

While getting this set up, I purchased about $7,000 in equipment for one of the guys to help him get going with what he needed to do the job. We then had a verbal agreement that on the projects that he subcontracted from me he would pay me back 25% out of these jobs.

Well he had since done several projects for me, I deducted the 25% we agreed upon and he had paid it down to about $3300. With each payment I sent him an email with an updated total on the balance still owed.

The other day the guy told me he has decided to pursue another job offer he received in a totally different business/line of work.. He told me this through email and I haven't been able to get him on the phone to have a civilized conversation about it. In his email to me about this he said that he would still make payments on this equipment. However, I have a good feeling that this would not be the case. A person we both mutually know had told me that the guy was pursuing subcontracting gigs with others and I think that this is probably the case. I think he's simply decided to stop doing jobs for my company due to him thinking he is more qualified then the jobs I have been putting him on.

Ideally I'd like to give him the money he spent on them and recover my equipment. But I don't think that he is decent enough of a person to accept this as an option or to even have a phone conversation, to meet up to discuss etc. Actually I know that this is not an option for him.

So I am wondering what my options my be to recover this equipment or if I can recover it? I did not have a contract in writing for this. I did however have the emails I sent him as payments were made, I have a couple emails from him that discuss it etc but that is really the only proof I have of this or of the amounts. I do have the receipt from the purchases and I can prove that I was the one that did pay for this stuff.

Can I get the police involved and get them to go there with me to recover the stuff? Or is this a different type of matter? Maybe small claims court or?? Again, the guy isn't very rational or I would just try to work something out, but I don't see him following through on his word. I really don't even see him giving up the stuff even if a judge ordered him to.

I realize that this was a mistake on my part to not have a contract or to even do this for him to begin with.. Any help or advise would be greatly appreciated.
 
So I am wondering what my options my be to recover this equipment or if I can recover it? I did not have a contract in writing for this. I did however have the emails I sent him as payments were made, I have a couple emails from him that discuss it etc but that is really the only proof I have of this or of the amounts. I do have the receipt from the purchases and I can prove that I was the one that did pay for this stuff.

Sorry, but you don't get to repo the equipment because you don't have a contract that says the equipment is security for the loan.

All you can do is sue him for the money if he doesn't pay.
Maybe small claims court or??

Yes. The $3300 that he owes you is within the MN small claims limit.

I realize that this was a mistake on my part to not have a contract

You got that right.
 
Be prepared to hear someone say, "it was a gift", "he never said it was a loan", "He was just trying to make more money by reclassifying me as an independent contractor to avoid paying social security, health insurance, workers compensation insurance, etc. He was looking out for himself by taking advantage of me.", "I just wanted to be an employee not a businessperson.", or my favorite, "I made more money working by the hour with less risk."

In your left leaning, blue state, suing these poor, unfortunate, displaced workers won't be a slam dunk for a greedy, employee abusing capitalist swine.

Good luck, but beware there will be pitfalls.
 

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