Is there a statute of limitations on being notified of commissions paid that have to be repaid due to cancellation of policies, etc?

UPDATED: Jul 2, 2012

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Is there a statute of limitations on being notified of commissions paid that have to be repaid due to cancellation of policies, etc?

I worked for an insurance company who paid us 12 months in advance based on each sale. I was let go 3 years ago and out of the blue they send me a letter that was hand addressed to my father who was my trainer about debt owed to the company of a significant amount due to canceled policies or deaths, etc. Is there a statute of limitations especially since they fired me and are they legally allowed to address my father with this letter and not me?

Asked on July 2, 2012 under Employment Labor Law, Georgia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The company probably does still have time to seek the return of any advanced or pre-paid commissions which were not in fact earned, such as due to cancellations or deaths. That's because this would be an action based on a contract or agreement (the terms under which you worked and earned commissions), and the statute of limitations, or time period to take legal action, in GA would be at least 4 years in that case, even if it was an oral (not written) agreement.

A letter sent and addressed to your father would not have legal effect in the sense that they can't show that they provided you notice or served you; but they could send it to your father if they are simply trying to get hold of you and make you aware of the situation--the law does not prevent them from sending it to him. If they want to actually sue you, they will need to serve the legal papers on you, not him. However, note that if under the terms under which your father (your trainer) worked, he was liable for any commission shortfalls of yours, then he would in fact be the proper person to notice and serve.

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