What to do about overpayments to subcontractors?

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What to do about overpayments to subcontractors?

I need to know is there anything I can do against subcontractors that worked for us who turned in 2 different invoices (with different invoice numbers) for the same work on the same day but a month apart. I paid them not knowing until after they had been paid and quit. They got me for $4,000?

Asked on August 3, 2013 under Business Law, Texas

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You can sue the subcontractors for fraud.  Fraud is the intentional misrepresentation of a material fact made with knowledge of its falsity and with the intent to induce your reliance upon which you justifiably relied to your detriment.

In other words, you would not have paid the subcontractors had you known the second invoices were submitted for the same work for which they had originally been paid.

Your damages (the amount of monetary compensation you are seeking in your lawsuit) would be the $4,000 you overpaid the subcontractors.

You said the subcontractors quit.  If they have disappeared, a process server can do a skip trace to locate them so they can be served with your lawsuit.


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