Would You Pay This Bill?

[bigleo48]

Hi All...long time since I've visited. Hope everyone is well and the sun keeps shining!

As some of you may know, I sold my wash about a year and a half ago. But I received a bill from my accountant and I don't think I should pay it, but wanted everyone's input first.

Here's what happened. We sold the wash, closed our books, paid our taxes and bills and we were done...at least we thought we were.

About two months after closing, the new owners accountant called our old one for help with filling their year end taxes (we did ours a few months previous). So over the course of the next 5 months, he helped them with various questions and clarifications. I was never informed that this was happening. even though our accountant is a neighbor.

11 months later we get a bill for $1000 for this work. We were shocked. I called him promptly and asked him about it. He seemed a little sheepish and explained that the new owners were not customers of his (not in his system) and that in our agreement we said we would help with a smooth transition for the new owners. So he felt we were responsible for the charges.

First, the 'help' was a loose one, but we discussed that I would help with the technical side and my wife would help with the finance side (she is a biz grad with 15 years in accounting). We would have never agreed to 'card blanche' with our accountant or lawyer after the closing. We did help them out with both tech and the books, but this seemed to come from their accountants to ours.

Personally I feel that I am not responsible and he kinda does too and told me to pursue it with the new owners. He could have billed them as he does have all their contact info AND the business address and name hasn't changed. I have several times made them aware of the outstanding bill, but it seems now to be falling on deaf ears. However, IMO, I did not request the work, was not made aware of it happening, we did not benefit from any of the work and finally, did not own the company at the time!

He is now threatening court action (not too worried), however its becoming a little uncomfortable being our neighbor.

What do you guys think?

BigLeo48

 

[Washmee]

He needs to get the new owners or quite possibly their accountant to pay for his services. The fact that he was contacted by their accountant has nothing to do with you. He didn't provide you with any services.

 

[MEP001]

How does he know that there's an agreement that "we" would help with a smooth transaction, and how did he come to determine he was part of that "we?"

If he's a good neighbor, maybe offer to pay half the bill. Doesn't sound like it though if he's already threatening legal action. If it were me, if he wouldn't settle for half I'd tell him to take me to court and prove I owe him $1000.

 

[Dcalhoun]

I also think you do not owe this. Accountant took it upon himself to "help". This is a small amount to go to court over so I would also extend the advise, take me to court and prove I owe this to you.

 

[PaulLovesJamie]

Ask him how the ethics representative from the board of accountancy would view this invoice.

 

[Robert2181]

It was their year end taxes not yours!

Ask him where you approved the services. That is what a judge and an attorney will ask.

It would not go to or hold up in court.

 

[JMMUSTANG]

If you decide to pay him, no matter what the amount is, I would pay him in quarters or whatever coin you collected.

 

[rph9168]

He rendered his services to the new owner, not you. I think he screwed up by not making sure they understood that they would have to pay for his services. Now he wants you to pay for his mistake. Neighbor or not you should not pay him. He needs to bill the new customer or his accountant.

 

[robert roman]

Timing (11 months later), sheepish (cowardice) and assumption (he felt we were responsible for the charges) are characteristics of bilking.

Bilking is practice of trying to obtain or withhold money from someone by deceit or without justification as in cheat or to defraud.

“He is now threatening court action….becoming a little uncomfortable being our neighbor.”

I would ask to see the agreement that spells out the justification for accounting work ($1,000 fee).

Otherwise, I might suggest telling your neighbor to consider taking a pee up a rope.

He may be a neighbor, but he certainly doesn’t sound like a friend.

 

[Jeff_L]

If smooth transaction is not defined in the sales contract, then it's subjective and goes beyond the four corners of the document. Your accountant was not a party in the contract right? Therefore it is the buyer's responsibility to work through you to go to your accountant, meaning, you have to be involved in that exchange. Their accountant circumventing you and going to your accountant directly didn't break a law, but in my opinion your accountant incorrectly assumed you would be footing the bill and had the obligation to contact you first to gain your approval for services.

Bottom line, IMHO, you don't owe anything. It's a civil thing, let them take you to small claims court, bring any sales contracts you have and any contracts you have with your accountant as evidence. I would stick by the language in your contract(s).

Note - you have to be sure you never once commented "just have your accountant contact my accountant to answer any questions". That's approval to render services. One could argue that more than one call should have constituted a call to you from your accountant though.

 

[Earl Weiss]

When I feel I am right and someone else has a different opinion and threatens court action I tell them. "Well, you think you are right and since I feel you are wrong and now you think you should go to court, please do. That is how reasonable people resolve differences and I am willing to abide by whatever the court decides. In fact, should you file suit you do not need to serve me with a summons. In fact will file an appearance once I am presented with a filed suit. Furthermore If you should prevail I will tender payment in court and you will not need to proceed with collection actions. Now, If you lose, how much are you willing to compensate me for court costs and time? "

 

[bigleo48]

Wow...great insight by everyone....thank you!

I did have a look at the purchasing agreement and this is what it says;

"The Vendors for the first month following Closing will make themselves available to the Purchaser for an on-site consultation at the Premises and, for up to six months following Closing, the Vendors will respond within 24 hours (more or less) to questions the Purchaser may have about the operations of the Business, all parties acting reasonably in the circumstances. The consultation service will be provided free of charge and during this period the Vendors will notify the Purchaser of any changes in their contact information"

Anyone who reads this can easily see that the 'Vendors' is my wife and I, and what the purchaser was looking for is support in day to day operation at the site. I can easily argue that using my accountant was not part of the agreement.

Finally, I did feel that his charges for the work performed via the sale were excessive. The accounting side of the sale was much expensive than the legal side that we felt was where most of the work was done. So to me there were signs of bilking earlier.

 

[MEP001]

Did you decide whether or not you're going to pay it?

 

[slash007]

I can't believe you are even considering paying it! You have zero responsibility in this matter and have already wasted your time dealing with it. I would just tell him that you are done discussing it and that he can take you to court if he feels he was wronged. Sad that it's your neighbor, but that doesn't justify him trying to take advantage of you.

 

[bigleo48]

Mep,

I am not. I will write a letter to him explaining why I'm not paying it. I will basically explain that after further investigation
the agreement for support was from the vendor (my Wife and I) and does not extend to his services directly. I will reiterate that we did not request this work to be done, did not benefit in any way from the work and no longer owned any shares in the private corporation.

 

[Robert2181]

He should come to his own common sense!

I have 6 different business's. ( 28 years) And there have been all sorts of incidences. All of us in business know or have pretty good idea when we or our operation need to step up to the plate or window.

However, when anyone threatens with an attorney or court to my business,employees or me, my reply is very sincere.

Sir/Mam, that is your choice. At this point and time then you are no longer wanting or willing to deal with me!

Common sense and truth most always come back into play.

 

[wash4me]

Right or wrong it hurts his reputation/pride to reduce or eliminate a bill. You could offer to donate to his church or the Red Cross in his name. This gives him an "out" of what in his mind is a black and white situation. That way you get the deduction so it costs you less than the original bill was and you've made your point.

 

[Waxman]

This sounds like a desperate person trying a 'money grab'. Once someone mentions legal action against me, I am done talking. I am done writing. I am done thinking about it. Done!

I had a plumber this year include suspect pricing on a bill he submitted. My "flim-flam' detector went off when I read charges for 'cleaning my tools' and $100+ travel charge from 1/8 mile away ( his shop to my apartment building).

One month after the flim flam, this plumber went bankrupt. I felt his unscrupulous billing practices were an overt 'money grab' because they were.

I would never pay this accountant! You should be done with him, and that includes your thinking. Just be done.

 

[Earl Weiss]

Right or wrong it hurts his reputation/pride to reduce or eliminate a bill. You could offer to donate to his church or the Red Cross in his name. This gives him an "out" of what in his mind is a black and white situation. That way you get the deduction so it costs you less than the original bill was and you've made your point.

Had a client do that once. Tell the other side that to prove it was the principle and not the $ offer to donate the amount - half to a charity of the other person's choice and half to one of his choice.

 

[tdlconceptsllc]

Hey sounds like a crooked accountant to me. If he is trying to scheme/scam you on this Situation. I would lose sleep at night thinking did he scam me all those years I had the wash too. My family had a accountant that's was a attractive looking woman had a nice life family American dream ect ect...My family caught them scamming us and she is pulling 10 years in the state- jailhouse now. Some real American Greed stuff. I feel bad for you buddy hope everything works out.