Expert: Barnette Law Offices, LLC - 11/20/2008

Question
QUESTION: I used to work for an outdoor rep group.  I left their employment a year and a half ago.  I received some samples from the manufacturers I represented that were billed to my employer.  I left with my employer owing me $2,460.89 for expenses and bonuses.  They requested that I spend my money to return samples to them.  I refused to do that until they paid the amount I was do, and could then request a call tag from UPS and have the samples picked up.  They would not do that.  My last letter from them stated that the samples would be considered additional compensation and a tax statement would be generated and reported to the IRS.  They also stated that a lack of cooperation would have serious results.  I have this in writing.  Two days ago (11-15-08) I received a certified letter that I was being turned over to collections.  My last correspondence was over a year ago on September 12th 2007.  I don't feel that I should owe them anything and want them to just go away.  What can I do?

ANSWER: Todd:

You should certainly entertain the notion of speaking to an attorney.  If you're in Tennessse, we at Barnette Law Offices, LLC would be happy to schedule a consultation for free.  My name is Jason Barnette and you have a good breach claim against them.

If you don't wish to litigate, I would advise you to write them a communication, certified article via USPS, that you intend to retain counsel and sue them for monies owed if the amount of the samples isn't retracted from collections and negated.

Jason Wade Barnette
Barnette Law Offices, LLC
http://www.barnettelawoffices.com
615-585-3885

---------- FOLLOW-UP ----------

QUESTION: Thank you for your quick response Jason.  Your answer was "spot-on" with what I felt was legally just.  I live in Georgia but I have fellow colleagues that I worked with from all over the country that all received letters.  So far I know of six.  We are all talking about a class action law suit since we all left with our company owing money that they wouldn't pay until the samples were returned.  We all knew if we returned our samples we wouldn't ever see our money.  We have all spent a lot of time doing yard sales, fall festivals and such trying to sell our samples to gain back the money we lost.

The money lost I refer to is expenses (i.e. hotel, gas, food, etc) spent out of pocket while calling on customers that was never reimbursed.  There were also bonuses earned that they never paid.  I have in writing that they intended to pay these expenses and bonuses but I had to send samples back first.  I offered to drive a couple of hours to one of the company’s partners house to return samples and pick up a check but they told me they didn’t want me to do that.  

These samples were never ordered or requested by any of us.  In fact, we all complained about receiving them.  We would get shipments, one of everything, every year from the manufacturer.  Most of the products were the same things that were sent the year before.   We would complain that if we had to receive these only the new items should be sent.  Since we covered the US and UK, we represented one of the largest customer bases for our manufacturers.  That was a key selling point for our management when trying to obtain a new manufacturer to represent.

According to what I read from the US Postal Inspection service, it is illegal for a manufacturer to send products to an individual and follow up with any type of bill or dunning communication.  Does this fit my particular case?

Thanks again,

Todd


Answer
Todd:

I am not really certain as to your question whether it is legal for a manufacturer to send something and thereafter, bill for it.  I would expect that could constitute mail and wire fraud and a could amount to extortion.  Both of these areas provide private causes of action.

With that said, I would strongly encourage you to consult with an attorney in your state and institute a civil action to recoup your losses.  If one of your associates resides in TN, I would entertain the notion of a class action but, please bear in mind that your recovery would be less (it would be only a portion of class recovery, if any).

Jason Barnette
Barnette Law Offices, LLC
http://www.barnettelawoffices.com
615-585-3885