Starting a business in Ohio can be an exciting and challenging endeavor. This is especially true when it is a cutting-edge business that its founders expect to be successful in the future. However, there are inevitable speed bumps with any business and it is not uncommon for accusations of failing to pay bills to be made. They might even choose to file a lawsuit about the matter. To address these and other potential issues that can come up, having an experienced firm that understands how to handle these problems in a professional and effective manner is imperative.
Ohio startup accused of failing to pay $2.5 million to firm
An Ohio company that manufactures electric trucks is accused of not paying a Michigan firm for its work. A lawsuit was filed to collect what is owed. According to the claim, the auto manufacturer had a contract for which the Michigan-based company would do utility work at the manufacturing plant. The auto company is not disputing the money that is owed. It says it is working on fundraising and has stated its intention to make the payments. The contract was terminated in August when the auto manufacturer was more than $900,000 behind in its payments.
The auto manufacturer did make a partial payment of more than $640,000 in June. It paid more than $10,000 in October. The contract termination fee is for more than $2 million. The combination of what is owed for the work is how the Michigan company came to the determination that it should receive $2.5 million. The auto manufacturer is listed on the Nasdaq stock exchange. Its intention was to build an electric pickup and make it available by the second half of next year. It also hopes to increase its number of employees to 800 from 600 in 10 months.
Legal assistance to pursue and defend lawsuits is key
For a business that is providing services and another business that is contracting for them, a failure to pay for those services on time and in full can be problematic. A lawsuit may be a last resort when those payments are not made, but it can also be a strategy to get the sides to the negotiating table to settle the matter. For businesses that are having challenges as they try to accrue capital and those that are concerned about not being paid for goods and services, it is wise to have an experienced legal representative to analyze the case and determine a path forward whether that is through business litigation or a settlement.