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<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Hello Everyone,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>I hope I am sending this to the right list-serve address as
I know there are two now. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><u><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'>Factual Background</span></font></u></b><font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'>:<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>I represent a General Contractor (“GC”). GC
has hired a subcontractor to perform a certain scope of work. The
subcontractor buys his materials from a supplier. Due to problems with
the subcontractor’s line of credit with the supplier, GC must pay for subs
materials via joint check. GC receives an Invoice, purportedly from the
supplier. It is on the supplier’s letterhead. GC pays it via
joint check and the check is deposited by the supplier and a release signed by
both the sub and supplier. GC later finds out that the invoice it paid
was “dummied up” by the subcontractor, who added $30,000 to it
fraudulently in order to try and get ahead of GC on the subcontract and get
more cash flow. Subcontractor has already failed before GC discovers that
it was a “dummied up” invoice and sub has been terminated from the
project. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>I wonder why the supplier, when they received a joint check
for an amount in excess of the true invoice amount, did not call the general
contractor or refund the general contractor back the $30,000? GC calls
the supplier and asks what happened – i.e. why it is that GC paid them
$130,000 in a joint check, but that the real invoice was only for $100,000, and
why didn’t GC get a refund. Supplier says this is not uncommon and
they just credited the subcontractor’s house account – so in effect
GC has paid for this failed subcontractor to have an additional $30,000 of
credit, or it went to other debts sub held with the supplier. GC asks the
supplier to send it a refund and supplier refuses saying GC’s only
recourse is to backcharge it against the subcontractor’s lump sum
contract. Supplier claims no knowledge of the “dummied up”
invoice and claims that there is nothing wrong with his crediting the
overpayment by the general contractor to the subcontractor’s house
account. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><b><u><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial;font-weight:bold'>Question</span></font></u></b><font size=2
face=Arial><span style='font-size:10.0pt;font-family:Arial'>:<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Does GC have a direct cause of action against the supplier
who it overpaid and who signed a release stating it was paid $130,000 for
materials delivered to Project XYZ, but the materials delivered were only really
worth $100,000 per the “true” invoice? Is there not something
fundamentally wrong with the supplier taking the $30,000 overpayment and using
it to satisfy the subcontractor’s other debts with him…regardless
of supplier’s intent or knowledge of the “dummied up” invoice
and subcontractor’s fraudulent motives? <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Thank you,<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>Blaik P. Ross, Esq. <o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'><a href="mailto:bross@beauchampco.com">bross@beauchampco.com</a><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'>305-445-0819<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=2 face=Arial><span style='font-size:10.0pt;
font-family:Arial'> </span></font> <font
size=2 face=Arial><span style='font-size:10.0pt;font-family:Arial'><o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 face="Times New Roman"><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
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<P align=justify><FONT face=Arial size=2><strong>Capability Integrity and Value.</strong><br>
We look forward to providing our clients
with many more years of delivering the highest quality buildings in our
community.<BR><A
href="http://www.beauchampco.com">http://www.beauchampco.com</A></FONT></P></TD></TR></TBODY></TABLE><br></body>
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