If I overpaid a subcontractor for work and want to know what can be done to recover this loss?

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If I overpaid a subcontractor for work and want to know what can be done to recover this loss?

We are a construction sonculting firm who hired a drywall contractor to perform work on one of our client’s homes. We have been organizing our paperwork and payments and discovered we overpaid the contractor $4500. We want to know what we can do to recover this loss and if at all possible avoid legal action, small claims etc. Should we write the contractor or call them and see if they are willing to pay us back? Would prefer to avoid legal action, if possible.

Asked on August 18, 2012 under Business Law, California

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Well resolving the issue with out court intervention is always the better way to go.  I would send a copy of the letter by certified mail with a copy of the documentation and ask them to refund you the over payment.  If they are unresponsive then I would have your lawyer send one.  If that does not work, well, you will have to sue them.  Stress that reputation is everything in this industry.  Good luck.


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