Contractor Payment Dispute Resolution

Summary

Contractors facing issues with subcontractors not completing work and payment reversals can consider legal action for breach of contract or fraud. Document all relevant communications and contracts, send a formal demand letter for repayment, and consider filing a claim in small claims court if the amount is within Louisianas limit of $5,000.

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Matt
Hi Matt, nice to meet you! What's the legal issue you're dealing with in Louisiana?
I am a contractor and a subcontractor took payment and did not do the job he was contracted to do. The client managed to reverse the payment and took it out of my account. I got hit both ways.
Hi Matt, that's a tough situation. You may have legal recourse against the subcontractor for breach of contract and possibly fraud. Here are some steps:
- Document Everything: Keep all contracts, communications, and receipts.
- Demand Letter: Send a formal demand for repayment to the subcontractor.
- Small Claims Court: Consider filing a claim if the amount is within Louisiana’s small claims limit ($*,*).
Would you like more information on any of these steps?