AboutTimmy Chou Expertise I am a experienced Mediator and a partner in a management consulting firm. As a mediator I work as a third-party neutral and specialize in partnership/shareholder disputes, management/labor issues, company culture difficulties, and family-owned business problems. I can help describe why alternative dispute resolution may be a good choice for you. As an experienced management consultant I may be able to offer creative ideas to help resolve your organizational and business problems and disputes. "If you say conflict, I say opportunity".
Question I gave a check to a contractor, I overpaid him, I called bank to block the check, I called him to leave message that I will give him new check, he did not reply.
Few days later, I got call from check cashing service, they said they gave money to the contractor, they want to collect money from me. If I don't pay, it will go to the court.
I explained to them, they don't care what is my situation, I want copy of receipt to prove they gave money to the contractor, they refused, what is my protection, what should I do?
Need your answer asap, you can send answer to califajoy@yahoo.com, thank you.
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 will possibly develop legal implications and you may wish to consult an attorney.
I would venture to suggest that you are not at a disadvantage because the contractor used a check cashing service, but I am not an attorney. You issued a check, you determined that it was either incorrect or it was fraudulent. You canceled the check to protect yourself. that is your job and you have done nothing wrong here.
It seems to me that the check cashing service has a duty to determine if there was a problem cashing the check BEFORE they give anyone the money. They didn't do that -- too bad. I would not advise you to give in to threats without some legal advice. Ask your bank.
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
