Our client, a small local business, hired a consultant to help with human resources policies and they signed a contract. The consultant did not complete the work required under the contract with our client but still billed the client for all the work that was promised in the contract. A contract dispute then arose regarding payment.
When our client refused to pay the amounts for work that was not done, the consultant sent the matter to collections. The collection agency threatened a lawsuit unless the full amount was paid to the consultant.
Our firm determined that the client had a potential countersuit against the consultant for breach of contract. The claim had merit so we were able to negotiate a settlement favorable to our client. As a part of the settlement, the history of the collection action was removed from our client’s credit report, preserving its good credit.