Re: Witholding payment until I sign a 'release'

<DoyouknowwhatIlikeaboutyou@xxxxxxxxx> wrote in message
news:1151089282.501385.74840@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Hi
I am an at-home mom who does some online web design work for small
businesses.
I did some work for a company as a contractor (though there was no
contract signed, it was oral).
They paid me $2000 every month for 6 months, when I submitted a
timesheet at the end of each month.

However when the work came to an end and satisfactorily, I submitted
the last timesheet and suprisingly they did not pay.
I waited, sent some reminder emails etc and eventually got a reply -
from their lawyer.
He sent me a legal document to sign a release which prevents me from
ever suing them or making money off the knowlege I gained etc. But the
wierd thing is, that the letter states that 'payment owed is in
question' but conincidentally states that they would pay me the EXACT
same amount ($2,000) if I sign the letter.

So on the one hand they are denying they owe me anything but if I sign
the release then they will pay me the same $2000.
What's wierd is that when I asked about payment they emailed, yeah I'll
send you payment for February, no problem. i.e. I have their own
acknowledgement that they owe me the money. Now I understand their
motivation, we all need to protect our intellectual property but on the
one hand I have evidence and acknowledgement that they do owe me the
money - from them and I also have a release form that says they don't
owe me money - also from them!


1) Do I have to sign the release form to get paid?
I don't think I do.

2) Isn't it illegal to withhold payment like this?
It would seem to be since that would explain why they say 'the payment
owed is in question' in the release as a way of getting around any
accusations. Nonetheless even with this tactic, isn't it still illegal?

Now, my kids gotta eat, so I think I should just go ahead and sign, but
it really ticks me off that they hold me to ransom like that. They know
well, I need the money and can't afford an attorney. I feel a little
helpless here so any suggestions as to how I can get paid quickly
without signing would be great or suggestions as to how I can leverage
that release in some way.

You might be making more out of this than it deservesl. I can't tell
without seeing the release and the attorney's letter and asking you a lot of
questions about the situation, but I can tell you that it is normal and
common and proper for an attorney to offer the exact amount that is owed and
insist on a signature on a release before paying it. That's only sensible.
It would be embarrassing if the attorney paid someone $2,000, didn't get a
release, and the creditor sues anyway, for another few thousand that the
debtor owes on a different contract, which the client neglected to tell the
attorney about. And it's common and proper to recite in the release
language that the debt is disputed and nobody is admitting anything.

This release might go to far, adding that stuff about intellectual property
rights, but that's your judgment call. You can always sue.

Whether to sign first and trust that the attorney actually pays is up to
you. The alternative is to go to the attorney's office and exchange the
signature for the check. I have seen a lot of these letters and releases,
and I have never seen or hear about a situation where the attorney didn't
actually send the check upon receipt of the signed release.

This answer must not be relied on as legal advice for the reasons posted
here: http://mcgyverdisclaimer.blogspot.com

McGyver


.

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