Expert: Timmy Chou - 10/5/2005

Question
Helo Timmy,i work in the construction business in Mexico City since 2 years ago, my job is to get contracts for construction companies such as installations electric, plumbing, air cond,etc. most of all in big constructions such as buildings, hotels, etc.
Since the first months ot this year i get a plumbing contract in the construction of the first Emmbassy Suites Htl.in Mexico city, i offered this job to a company who owns a person that i supposed he was a friend because i know him since some years ago but since i tried to get my commission money for this contract it is always a problem and last week when i tried to get my money for the last 3 weeks job,he complained to me that i have been talking to his employees behind him,that this a client of him because he is doing the job,etc. this is the clasical situation that he is now the angry and good guy and i am the bad guy, i never made a commission contract with this guy, he is a married guy and i had even think in show his family pictures and some other things of his affairs with other women, do you think this a good idea to push him to get my money or can you give me another idea to try to get my money in good terms?
Sorry for my mistakes in the English writing.
Thank you in advance.
Fernando.

Answer
Thank you for your question!

Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

The case you describe here is unfortunately very typical.  I am not a lawyer, nor can I mediate your dispute with just you alone but I can respond to your question from my business consulting experience.  Note that this issue may almost certainly have legal implications and you should consult an attorney.

In the US there are laws known as "mechanic's lein" laws which allow someone with a greivance who provided services to a construction project to file a preliminary lein on the property which forces people to take care of any contractors involved.  If these laws are available in Mexico you should use them.

I wish you had made a written agreement, though this would simply have made your case stronger if you wanted to sue.  However the problem is that he has your money and you must now compel him to pay you--which will cost you time and money.  Use every leverage you have with licensing agencies, government, trade associations, and others to pressure him.  Let him know that you will let everyone in on how he does business.

The wife angle is possibly a way to go, but I would worry that he would become so enraged he might dig in his heels and not pay you for any reason.  For him it is a business problem, and for now it is cheaper to put you off than to pay you.  You must make it more expensive for him to deal with you, or more attractive to keep you friendly.  

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

    Confidential, no public record
    Limited exchange of documentation, information
    Quick, don't have to wait for a court date
    Arbitrators have expertise in the subject matter and are trained in conflict resolution
    Cheaper than litigation
    Preserves business relationships

Negatives of Arbitration

    It's a compromise, no %100 winner
    Complex arbitration can be costly
    If not satisfied, may litigate the arbitration procedure
    Poor results with an unskilled arbitrator
    Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

    Neutral mediator can objectively suggest alternatives not considered before
    Parties are directly engaged in negotiating the settlement
    Can be quicker than litigation
    Less costly than litigation
    Preserves business relationships
    85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

    may not reach a binding decision
    unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

    a clear winner and loser
    uses a prescribed set of procedures
    more predictable outcomes
    is final

Negatives of Litigation:

    waiting for court dates can do more hare
    usually more expensive than mediation and arbitration
    part of the public record