Defense against Dishonest supplier

I function as president of a colorable entity that is engaged in the business of engineering mechanical products. About one year ago we contracted with a major supplier of mechanical systems to the Heavy truck sector. The project required the complete design of a seat system along with the prototype build of nine show quality level finished seats. We outsourced the prototype build portion of the project to various subcontractors that have expertise in specific areas of need. The primary subcontractor that built most of the physical parts and performed assembly processes is suing our firm for breach of contract for remaining monies on the account. Our firm took heavy loses on this particular project and there was additional intrigue from the suppliers side that appears to have aided in the reasons for the failure of the project. They are as follows:

1) This particular supplier was added at the last minute by one of my former contract managers
2) This manager appears to have had a financial business relationship with the plantiff through the managers' spouses' interior design firm.
3) We accepted the last minute change of lead subcontractor because the manager vouched for the technical build expertise of the supplier. We later found out through other employees that the supplier had never built any product like the one that we needed supplied.
4) I drafted a letter of commitment to pay the remaining monies before I learned of the conflict of interest relationship (which "they" the supplier modified)
5) The final product was not delivered on time to the customer by the supplier; nor did it meet the visual quality requirements needed to show it at the largest aftermarket mechanical products event in the country.

Subsequently, we were desourced by our end customer which has directed resulted in the loss of access to more than 10 million in business. Additionally, this customer controls more than 80% of the seating market for Heavy Trucks.

I received a summons and am requested to file an answer to the court but it appears that the attorney sat on the paperwork and delivered it right before the 28 day cutoff. If a judgement has been entered for our company how do I defend this and is it reasonable to file a countersuit.

I am in need of a reply as soon as possible. Please email me at pauroz@intentcorp.com

Best regards,

Prozier

[idknow]

ok, i count two problems that you might look into to solving the problem:

1. the employee's friend FOAf thing, that's fraud, they lied of being able to do the contracted work, so you might be able to prove void-contract since the company lied about their abilities

2. the Twister (attorn) who sat on the papers, that could be complained of as "deriliction of contracted duty", "ineffective counsel", etc.

your anointed brother idknow.
--

Originally Posted by prozier

I function as president of a colorable entity that is engaged in the business of engineering mechanical products. About one year ago we contracted with a major supplier of mechanical systems to the Heavy truck sector. The project required the complete design of a seat system along with the prototype build of nine show quality level finished seats. We outsourced the prototype build portion of the project to various subcontractors that have expertise in specific areas of need. The primary subcontractor that built most of the physical parts and performed assembly processes is suing our firm for breach of contract for remaining monies on the account. Our firm took heavy loses on this particular project and there was additional intrigue from the suppliers side that appears to have aided in the reasons for the failure of the project. They are as follows:

1) This particular supplier was added at the last minute by one of my former contract managers
2) This manager appears to have had a financial business relationship with the plantiff through the managers' spouses' interior design firm.
3) We accepted the last minute change of lead subcontractor because the manager vouched for the technical build expertise of the supplier. We later found out through other employees that the supplier had never built any product like the one that we needed supplied.
4) I drafted a letter of commitment to pay the remaining monies before I learned of the conflict of interest relationship (which "they" the supplier modified)
5) The final product was not delivered on time to the customer by the supplier; nor did it meet the visual quality requirements needed to show it at the largest aftermarket mechanical products event in the country.

Subsequently, we were desourced by our end customer which has directed resulted in the loss of access to more than 10 million in business. Additionally, this customer controls more than 80% of the seating market for Heavy Trucks.

I received a summons and am requested to file an answer to the court but it appears that the attorney sat on the paperwork and delivered it right before the 28 day cutoff. If a judgement has been entered for our company how do I defend this and is it reasonable to file a countersuit.

I am in need of a reply as soon as possible. Please email me at pauroz@intentcorp.com

Best regards,

Prozier

Thanks for the position. I'll have to file a reply but I going to ask for a continuance to make sure that I have all the proper evidence to present. I need to understand whether I should present paperwork only or should I be physically present as well. I would appreciate any sound ideas as my time is shrinking.

Peace unto you.

[wisper]

There are many sides to entertain in such a case. My first thoughts of course are probably emotion driven, you know, like sue the buyer who left, and the new contractor , and fire the person in whose job description was the corporate responsibility for make/buy decisions, and for subcontractor award decisions. If you are one of the responsible employees, then there is a lot of additional burden on your shoulders, not just in financial remedy, but in taking the lead in arriving at the correct multipath actions.

Here is what I see as your task, and to even think about delegating it-, well let me suggest you should name a good replacement, all this of course depends on the business structure, and where you sit in the pecking order. Rather than private e-mail I suggest that to put multiple scenarios on the table will get others here, with the applicable backgrounds and experience to come forward.

Realizing that time is of the essence, you first have to move the court to get some time, and determine who is the person, or the lawyer to make sure all the court rules and procedures are followed. But get the court and the other party's lawyer to grant you time to answer and to prepare a case.
Based on available information at this point, one has to make a lot of assumtions in granting quick response. As president, what other corporate offices do you hold. From the screw ups thus far, you'll need to not only get yourlagal issues in order, but at the same time be prepared to let it all hang out as discovery proceeds.

1) define the legal or paralegal assignments and get some time.
2) have the legal assignee determine a strategy for cross suit and- or defense
3) Think about moving the court to throw out the contractor's actions as frivolous or based upon fraud and deciet, and let the court know you intend to work with the contractor to solve the issue in administrative negotiations and that there is going to be a counter suit if this can't be worked out.

In parallel, you have to analyze the situation from the enemy's viewpoint.
This analysis will be ultimatly a demand on you, if you are not going out of business. For instance:

1) what are the companies policys and procedures in Qualifying contractors
2) Who is the authorized buyer who can award a contract?
3) What are your contract compliance and quality assurrance proceedures, and assumming they exist, what went wrong in this instance.
4) Did the contractor have to provide a bid package? were the terms and conditions adequate. What was the provision for final quality inspections, and what were the terms of delivery? Did the contractor have your detailed specifications for the product. How could your company allow delivery to your customer, without all the contractual steps such as final inspection, delivery of title and all the miscellaneous Ts and Cs.
The reasons you need to get into all this fast, is that if your business policys and procedures had that many gapeing holes, the contractor will have plenty of ammunition to attack your positions. Also, and probably as important, you need to take charge of fixing all your problems for future concern and survival. You are a candidate for a thouough ISO 9000 type analysis (so do it!)

The third path:
1) Go to the people who told you about the conflict of interest, and the new contractors lack of manufacturing experience.
2) assemble a dosier on this stuff, as well as your buyer's wife's actions
3)assemble data on the buyer as well, where he works now and any info that may support a conspiracy. While with your co. did he have a conflict of interest, etics or other such document?
4) was the employee an officer of the corporation?

Sui Juris does have private message capability.