Need some input on a non-paying customer

[bob the builder]

So, without naming names or boats, I'm in a situation now that is a first for me.

Back in March, I completed a pretty significant buildup for a customer and let him know that it would be ready to ship within a few days. My policy is typically 50% down and 50% when complete. In this case I strayed and only took a $500 down payment. I figured I would be okay as he was supplying the actual kit. He let me know that he'd need a week to 10 days to get the cash together. Not a big deal. I wasn't worried.

Then he disappeared... until June.

When I finally managed to get a hold of him, he let me know that he was in deep doo doo with the IRS and got hammered with a massive tax bill. I let him know that I'd be willing to work with him. I offered to sell the boat, take my labor from the proceeds and then forward the remainder. He didn't want to do that as the boat is pretty unique (and turned out pretty awesome, if I do say so myself). He said he needed to make payments. I was okay (not happy, but okay) with that.

Then he disappeared... again.

No response to email or phone calls for the last 4 months. For all I know he's in jail for tax evasion. Does anyone have any idea what I should do? I'd hate to have to turn it over to collections, but I'm getting close to needing to. I still have the boat, so selling it is an option, but I'm not sure about the legalities of that as he supplied the hull. Would that be considered his property, or do I have the right to liquidate to recoup my expenses?

Any help you can offer would be greatly appreciated! I'm interested in hearing what you think.


Bob

[sam reichart]

Sell the boat. Take your labor from the proceeds and send the remainder registered mail to the last known good address for the buyer. Wash your hands.
Over the years, I've been amazed at the amount of dirty, underhanded and low activity that takes place in this (and other) hobbies.

[JWLaRue]

Bob,

I agree with Sam's recommendation. Based on your post, you have waited for longer than 4 months. If you believe you can sell the boat at a price high enough to recoup the amount owed, do so.

-Jeff

[Guest]

It's a pity when this sort of thing happens, as it tends to influence future orders with those that play the game.

I know a retired claims inspector for insurance fraud, and he once told me that 95% of people are honest, the dishonest make up just 5%, but they put themselves about.

[apa-228]

There is that little thing called a "mechanics lien" which would likely apply in this case, or small claims court depending on your jurisdiction's cap on the amount due.

[bob the builder]

I'm out of town for another week. I'll let him know what I'm going to do via email and then go about liquidating the boat if I hear nothing from him.

Thanks for your input, guys.


Bob

[salmon]

Place an ad in the paper to let the original owner of intent to sell and by what date. Send a registered letter too. This way you can demonstrate your due diligence if it went further south to court. I think you can then prove you went above and beyond. I guess if it came to small claims, he could claim you had a verbal agreement of payment and you sold it from under him. I would think you need to prove otherwise and if so since nothing is written how?

[subdude]

Bob, I would agree with all that has been suggested, and think that the procedure that Tom has outlined would most certainly cover you in case of any legal action. Sell it and move on.

Jim

[jure george]

IT`s a shame that there are people like this out there. These "people" cause vendors like you to become, how can I say it, unfriendly/un-understanding, to real buyers who might have a real issue come up during a purchase and need help with making payment arrangements. This is a tuff business to be in.
I hope things work out for you and that you are still able to deal with others easier. I know you worked with me before and I appreciated it.
George

[schaffer hasse]

it has highs and lows in life,but life goes on

[bob the builder]

If he is having those real issues, I certainly feel for him. I just wish he'd communicate so that we can work out a plan. We could do payments or trade for services or almost anything. Not replying to phone or email makes things exceptionally difficult.

I will say that in all the years of my doing business, this is the first time anyone has pulled this on me, so I'm not jaded (quite yet).


Bob