wrongfull deposit to a company that does not want to return the money

[Giancarlo]

Jurisdiction

Texas

Hi,

Thanks in advance for any advice.

A company in Mexico made a deposit by mistake to the amount of 28k to a company it has worked with before. This deposit was done by mistake and no outstanding work or invoices are standing.

The company is simply not taking the calls or returning the deposit. Does this need to be handled by a lawyer? can the cost of the lawsuit be added to the original 28k? Should I try with a formal letter that they either return the money or I am suing?

Thanks for the advice

 

[Zigner]

I'm sorry, but this site handles US law matters only.

 

[Giancarlo]

I'm sorry, but this site handles US law matters only.

It is a US law matter, the company is texas based! does it change that the deposit came from outside the country?

thanks for the reply!

 

[zddoodah]

A company in Mexico made a deposit by mistake to the amount of 28k to a company it has worked with before. This deposit was done by mistake and no outstanding work or invoices are standing.

What is your relationship to this situation? Do you work for one of the companies? If so, which one, and in what capacity? Is the other company located in Texas?

Does this need to be handled by a lawyer? can the cost of the lawsuit be added to the original 28k? Should I try with a formal letter that they either return the money or I am suing?

If the other company won't return the money, then the Mexican company's recourse will be to sue. If the other company is in Texas, then the lawsuit will have to be filed in Texas. If the Mexican company is a corporation (Sociedad Anonima) or LLC (Sociedad de Responsabilidad Limitad) or other similar artificial entity, it will be required to be represented by an attorney. Based on your description of the transaction, attorney fees would not be recoverable in the lawsuit. However, if the parties have a standing contract, that might be relevant to that issue.

 

[Giancarlo]

What is your relationship to this situation? Do you work for one of the companies? If so, which one, and in what capacity? Is the other company located in Texas?




If the other company won't return the money, then the Mexican company's recourse will be to sue. If the other company is in Texas, then the lawsuit will have to be filed in Texas. If the Mexican company is a corporation (Sociedad Anonima) or LLC (Sociedad de Responsabilidad Limitad) or other similar artificial entity, it will be required to be represented by an attorney. Based on your description of the transaction, attorney fees would not be recoverable in the lawsuit. However, if the parties have a standing contract, that might be relevant to that issue.

My relationship to the company is personal, I am trying to help a friend recover this deposit.

The receiving company (that won't return the wrongfull deposit) is in texas, it is a transport company that has been hired before, no standing contract is signed or agreed upon.

The contact is with the owner of the company that has decided to not answer, return any communication, email, calls or whatsaap.

To me it seems to be a simple matter if attorneys gets involved, but want to confirm if it is not more trouble than it is worth.

Again thanks for the advice.

 

[army judge]

To me it seems to be a simple matter if attorneys gets involved, but want to confirm if it is not more trouble than it is worth.

What you think is simple, is actually very complex and complicated.

Its not easy to sue anyone, even if your defendant resides in the same US State where the plaintiff resides.

Initiating an internal lawsuit, as in a Mexican national suing a national of the USA isn't easy.

Should the Mexican national prevail in the lawsuit, becomes even more complex when the plaintiff attempts to collect on their judgment.

The fact that you're NOT licensed attorney, but you're practicing the law illegally, could reap you a few unintended, unexpected consequences.

If you really want to help your amigo, suggest he retain the services of a Texas licensed attorney.

 

[Giancarlo]

What you think is simple, is actually very complex and complicated.

Its not easy to sue anyone, even if your defendant resides in the same US State where the plaintiff resides.

Initiating an internal lawsuit, as in a Mexican national suing a national of the USA isn't easy.

Should the Mexican national prevail in the lawsuit, becomes even more complex when the plaintiff attempts to collect on their judgment.

The fact that you're NOT licensed attorney, but you're practicing the law illegally, could reap you a few unintended, unexpected consequences.

If you really want to help your amigo, suggest he retain the services of a Texas licensed attorney.

I am sorry if I gave the intention that I was acting or trying to act as an attorney, I in no way or means plan to. That is why I am asking.

To me the case seams simple or straightforward, that is all I meant. I do think hiring a lincesed lawyer is the best solution.

thanks for the advice.

 

[Zigner]

I am sorry if I gave the intention that I was acting or trying to act as an attorney, I in no way or means plan to. That is why I am asking.

To me the case seams simple or straightforward, that is all I meant. I do think hiring a lincesed lawyer is the best solution.

thanks for the advice.

I agree that it seems to be straightforward. Unfortunately, "straightforward" is not the same as "easy." I wish the best of luck to your friend.

 

[adjusterjack]

The company is simply not taking the calls or returning the deposit. Does this need to be handled by a lawyer?

Well, $28,000 is not small claims court so, yeah, litigation has to be handled by a lawyer.

can the cost of the lawsuit be added to the original 28k?

Depends. Generally, each party pays its own attorney fees but there are exceptions and you have to ask the court to award it. You aren't going to know until it's over.

Should I try with a formal letter that they either return the money or I am suing?

Sure. Couldn't hurt. Just be sure that you are willing and able to follow through with the lawsuit. If you bluff, and you're faded, you'll never see a nickel.

I'm sorry, but this site handles US law matters only.

Did Texas secede from the union again?

My relationship to the company is personal, I am trying to help a friend recover this deposit.

That changes things. You have no standing to write the letter. You'll be engaging in the unlicensed practice of law which is punishable by having 4 lawyers on horseback pull your limbs in 4 directions until the inevitable parting of the flesh occurs.

However, your friend, if he is an employee, owner, officer, or partner may represent his company in Justice Court in accordance with Texas Rules of Civil Procedure 500.4(b).

Rule 500.4 - Representation in Justice Court Cases, Tex. R. Civ. P. 500.4 | Casetext Search + Citator

The Justice Court limit is $20,000 so he would have to waive (give up) the other $8,000 to sue without an attorney.

To me it seems to be a simple matter if attorneys gets involved,

There is nothing simple about litigation with or without attorneys.

The fact that you're NOT licensed attorney, but you're practicing the law illegally, could reap you a few unintended, unexpected consequences.

Right. It's a felony in Texas.

 

[Zigner]

Did Texas secede from the union again?

The OP listed the jurisdiction as Texas, but then went on to speak of Mexico only with no further mention of Texas.

 

[adjusterjack]

The OP listed the jurisdiction as Texas, but then went on to speak of Mexico only with no further mention of Texas.

That was a joke, Zelda.

 

[Zigner]

That was a joke, Zelda.

 

[Giancarlo]

thanks, got a way clearer picture of what the law in Texas looks like for a case like this.

Again, sorry if I was not clear enough in that I have no intent on getting involved more than giving my friend an outlook which you guys have provided in spades.

The deposit at the end of the day was made in Texas and the company is in Texas, so the jurisdiction would be Texas. But didn't consider that it would be a mexican national bringing the lawsuit (the company that made the deposit).

Hate people just being bad people, you get a deposit that isn't yours, just return it!!!! Hopefully this does not turn into a long painfull process.

Well, I will post an update of what happened if you guys are interested.

Again, many thanks!

 

[Zigner]

thanks, got a way clearer picture of what the law in Texas looks like for a case like this.

Again, sorry if I was not clear enough in that I have no intent on getting involved more than giving my friend an outlook which you guys have provided in spades.

The deposit at the end of the day was made in Texas and the company is in Texas, so the jurisdiction would be Texas. But didn't consider that it would be a mexican national bringing the lawsuit (the company that made the deposit).

Hate people just being bad people, you get a deposit that isn't yours, just return it!!!! Hopefully this does not turn into a long painfull process.

Well, I will post an update of what happened if you guys are interested.

Again, many thanks!

When was this amount mistakenly paid?

 

[zddoodah]

My relationship to the company is personal, I am trying to help a friend recover this deposit.

So this situation has nothing to do with you?

In that case, tell your friend to speak with his boss or his company's attorney.

want to confirm if it is not more trouble than it is worth.

That's not a decision that you - a person with no personal involvement with the situation - gets to make. It's up to the decision maker with the Mexican company to make that decision (and I certainly hope that person puts stronger financial controls in place going forward to ensure something like this doesn't happen again).

But didn't consider that it would be a mexican national bringing the lawsuit (the company that made the deposit).

That's not legally relevant (just FYI).

 

[Giancarlo]

When was this amount mistakenly paid?

1 month ago, that month was trying to get the deposit back with no luck. The person on the Texas side is also the owner of the company, so one owner not replying to another owner of two relatively small companies.

My friend is the owner of the company and asked for some advice from me, I said I would try to get some info. I am NOT making the decision.

The mistake was definitely one that should not have happened, but it was an accounting mistake since they have done business with this company before, it was an account authorized to make transfers to. I know this could have been avoided, that does not change the fact that the receiving end of the deposit by mistake should just return it.

My friend is seeking legal advice from a Texas attorney to make his own, informed decision. Which was my advice to him!

Again, thanks for the advice