Unpaid expense reimbursements

I worked as independent contractor (doing work as a programmer) at a client site in Kentucky for a company located in New Jersy. The company agreed (in writing) to pay for all the CLIENT-APPROVED work hours and expenses. They have paid for the work but haven't paid for expenses (approx. $5,500.00) incurred. Now, they are saying, they haven't got paid by the client so they can't pay me even though the contract doesn't say anthing to that effect. Thank you for your help. Sam Vadla

1 answer  |  asked Mar 8, 2003 4:53 PM [EST]  |  applies to North Carolina

Answers (1)

Reagan Weaver
Breach of contract

Thank you for your question. If your contract provides for payment of expenses then you should be able to expect payment. However, what was meant by "Client-Approved" is a bit vague. Apparently, your hours were approved, but the expenses were questioned. Or, you have been taken advantage of. I would like to know whether the client consented to the expenses which you incurred by finding the hotel, arranging for the flight(s) or whatever. Is there evidence that we could use to prove that they knew you were incurring the expenses or that they should have known? Also, I would look at whether the expenses appear to be reasonable.

The most important thing to look at in a breach of contract case is the contract. After that the evidence to consider is whether a breach occurred. In this case, if a breach occurred the next concern I would have would be whether you want to go after the NJ firm that hired you and last, if you want to go after them, what is the likelihood of success collecting your money?

posted by Reagan Weaver  |  Mar 8, 2003 9:28 PM [EST]

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