Sweeby, imo your propsed draft is wrong. It is business, and therefore no mention of anything personal should be made. I think it is also too long and nice, almost sweet. There should be a plain statement of fact with no alluding to possible misunderstandings on either part, without threats. And do not acknowledge that the bill is large, or they may think you will negotiate down!

I also do not think the letter should be an email, rather a registered letter to whomever you are addressing.

Hire an attorney experienced in these specific matters, no matter what it costs. Would you rather have 66% of the bill, or nothing at all?

I agree with Sherrmann. State the facts plainly and succinctly, delete any personal reference, demand payment within "x" number of days and state that if not received in that time frame, you will pursue a course of legal action, and send the letter via registered mail. Best wishes to you. I can imagine how incredibly frustrated you must feel!

Here is my take:

"I'm unclear on the exact meaning of your response. Were you saying you were not sure when XYZ would be able to pay the full balance of these invoices or that you were trying to determine if these invoices are to be paid at all?"

It doesn't matter if or what they said in a response or your confusion. The debt is owed and when will you receive payment is the only question you are asking.

"While I have been recently informed that proper internal procedures were not followed on XYZ's end . . "

Do not even mention this part but do include this part, "I had no reason whatsoever to question the apparent authority of the XYZ employees who requested, then authorized the work at the time that work was performed."

"Yes, the amount is sizable ($00,000.00), and I do understand that it can be difficult to fit an unexpected amount of that size into any budget, even a budget as substantial as XYZ's."

Alarm bells are going off on this one! That is their problem and puts a huge chink in your armor.

"while I can be (and have been) somewhat flexible on a payment plan" BAD

"this is not something I can walk away from." GOOD

While you are in the lawyer's office, sweeby, have him/er draw up a legal contract for you to present to future clients so nothing like this happens to you again. Contracts are only as good as the paper they're written on, and verbal understandings count for nothing.

Professional Contracts are part of the cost of doing business, after all. It looks like you are charging $100 an hour for consulting. Pay the lawyer his due.

Good advice above. I would add that your closing should be more formal: Very truly yours, rather than Sincerely which is more properly used for a "friendly letter" as opposed to a business letter.

I also agree with getting rid of references to your poor, starving family...

auntjen summed up my thoughts as well.

Ouch! How about this?

-------------------------

I received your response to my email requesting payment for consulting services rendered between April and September 2011 totaling $00,000.00.

Your response indicated that XYZ employees did not follow proper internal authorization procedures, and that therefore, funds had not been allocated for these expenses.

While unfortunate, at the time the work was performed, I had no reason whatsoever to question the apparent authority of the XYZ employees who requested, authorized, then actively collaborated in the work. At no time during the project's lifespan, which included more than 200 emails and five monthly progress billings, did XYZ ever indicate the project was unexpected.

This debt is already 180 days past due, and I will not simply walk away. We need to get this matter resolved quickly, preferably without resorting to legal channels. Please let me know by the end of the week what you propose as a payment plan.

Yours very truly,

--------------------------------

Better?
Gotta say, my 'poor starving family' line was only in response to their 'poor XYZ - we don't have the funds...' spiel. It seemed so much nicer than "Bu!!$h!t !" ;-)

I assumed the part about your family was a pick up of Sanyponder's advice to "emphasize that you are a small business" which I thought was good advice.

I still hope that you are going to have an attorney write a demand letter, on THEIR letterhead. But if you want to do this first, I certainly hope you aren't just sending an e-mail. You can send that, but you should ALSO send a certified letter on your business letterhead. They can claim that your e-mail never got to the right person, as another stalling tactic.

I think your most recent letter is better, but still too chatty. Maybe more like this:

This regards your response to my email of (date) concerning payment due for consulting services rendered for the contract period of April- September, 2011 in the amount of $00,000.00.

The allocation of funds and authorizations required are internal issues, and do not effect the contractual obligation that was established by XYZ employees over the lifespan of the project. I performed my work in good faith, relying on more than 200 emails and your unquestioned acceptance of five monthly progress billings as indication of the establishment of a valid contract, the obligations of which I have met.

Payment for services rendered is now 180 days past due. I expect the receipt of your proposed payment plan by April 20, 2012. If the proposed plan is acceptable to me, I would require the first payment no later than 10 days following my acceptance of the plan.

Should you choose not to follow the stated guidelines, I will have no choice but to resort to legal channels to compel you to meet your contractual obligations.

Yours very truly,

You're good Les!

This tone is very 'I mean business' -- and I have only had the one email exchange with 'Director-dude' -- which was pleasant but vague. So do you'all think this tone is too 'not nice' for what is, to him, a second request? (I'm very conflict averse in case you haven't noticed...) And should I even bother with the VP's? or go straight to Legal?

Your revised letter is better. I've had to write demand letters (and my job requires me writing compliance letters when people are not following the law), so you have to be very business like if you expect them to pay attention. It doesn't mean you're being a snot, it means you're a business and you are seeking to collect payment due.

I would not send an email, but an actual letter...sent certified so they have to sign for it and you have proof it was received. Even if they don't reply, now you have something to stand on as they can't say they never received it.

I think I'd word the letter more like this:

Date

J. Doe, President
Private University
University Address

Dear M(r/s) President:

As you are aware, my company, Sweeby's Consulting performed consulting services between April and September 2011I, as a result of authority granted by XYZ, title of Private University. During the period, there were extensive emails and communications regarding services rendered. In addition, my company provided five monthly progress billings (copies enclosed). At no time during the consulting services period were my services questioned nor was I informed that the work was not authorized by Private University. Sweeby Consulting performed duties in a satisfactory manner and billed Private University accordingly.

At this time, the full amount of $00,000.00 is due and payable. Please submit full payment no later than (date 30 days minimum) for services provided. I understand that this is an unbudgeted expense for the Institution, therefore my company may consider flexible payment arrangements. Please be aware that payment is currently 180 days past due. Failure to submit payment or to make acceptable payment arrangement will lead to judicial action. Please feel free to contact me at (area code)phone number or the address noted below if you have any questions.

Sincerely,

Sweeby Gardenwebber, President
Sweeby's Consulting
Address

This is to the point, provides them with documents (billing invoices) and if you have to take it to court, shows that you have provided reasonable options. This follows the format I use in my letters. Saying sincerely is typical in business letters. You definitely want to keep all personal business out of this...it's NOT personal. Letters are meant to be formal means of communicating.

You might send them a follow up email a day or two after you mail the letter, recapping what the letter says, but the letter is what you'll need to use if you go to court.

Stand strong and don't let them bully you. Their incompentence is not your problem. You were given the green light, you did the job, submitted invoices and when someone realized they had their shorts in a twist, they're trying to bully you into tucking tail and slinking away. Go get 'em!!

I think Les' letter is VERY good!

If you use Les' letter, paragraph 2 should read "The allocation of funds...and do not AFFECT..."

Do not suggest payment arangements can be made. You expect that payment will be made immediately. Keep it short and simple.

Just re-read what I wrote, and realized that in the second paragraph I wrote 'effect' instead of 'affect". So sorry - I know better, and clearly zoned out on that one.

Sounds like Pesky has a lot of experience with this, so her letter and guidance are great resources!

One other bit of advice...If you threaten legal action within a certain time frame, be absolutely prepared to follow through on that. if you don't follow through, they'll continue to try and avoid payment. I would highly suspect, though, that a copy of whatever you send is going to make it's way to their legal dept.

At a minimum, I'd have a chat with a lawyer, tell them what's going on and let them know you MAY need help. And if the deadline passes, Bite the bullet and call your lawyer.

i meant no offense with the "poor starving family" reference; just my way of saying to keep this transaction focused on payment, and only payment.

I agree with Lukki, since it's a large amount of money, hire a lawyer. Let the lawyer write the letter on their letterhead.

It's a university, they should have the money to pay in full.

I also wouldn't write anything to them via email. I think emails can be messed with.

A lawyer won't come off as mean in his/her letter. They'll be professional and only state the facts so the university knows you mean business.

Again, lots of good advice. However, I would not include any acknowledgement that you are aware that it was an unbudgeted expense. I think Les' short response may be best if you don't hire an attorney to write the letter.

Sweeby,

You really need to approach this with the assumption that it will end up in court and react to the situation accordingly. It is one thing to be optimistic and hope that a letter will suffice but the reality is that it probably won't. The payment is already 180 days past due and they haven't even acknowledged the debt. That's substantial. You also said the wording was very careful; so most likely, if it wasn't written by an Attorney, it was at the very least approved by an Attorney before being sent.

The cost to have a professional advise you and write a formal letter for you is only a fraction of what is owed. Also, are you aware of any legal requirements that may need to be met by you before a law suit can even be filed? I have a mortgage back ground and when it comes to collecting in those cases, if a certain procedure isn't followed to the tee, you're screwed and have to start all over. I know your situation is very different but still, you need to be more aware of what's expected through the entire process and not just now. You also need to know how the courts will interpret your case. Even though I was in the right in my situation, the reasons from a legal perspective were often different from my own. Maybe because you're in the middle of it you don't see this, but you really need to look at the bigger picture and CYA for any situation that may arise.

Referring back to SandyPonder's post -- I do actually believe that the university will pay if I can get the right letter into the right hands.

So I have decided to write one more email to my contact's boss's boss (Director) with the electronic read receipt switch on. (Remember, while Director has been made fully aware of the situation, he and I have had only one email exchange. Prior to that, I corresponded with my contact.) I will also send a copy of that email via certified letter on my company letterhead so there is an official record. Doing certified mail only without email makes the timelines infeasible.

Because the Director knows the particulars of the project and has been told by my contact that an agreement existed and that I performed well, I'm not going into legal detail there that could potentially backfire on me.

I'm thinking that I should give Director one more chance to pay me himself before I go to VP and Sr. VP. This university has a major C.Y.A. political culture, and Director may be highly motivated to 'sweep this under the rug' without notifying VP and Sr. VP. Their budget's big enough that this should be possible.

My now-departed inside contact tipped me off about their purchasing card procedures, which are very flexible and have minimal oversight. If Director wants to hide this mess from his superiors, he can authorize a P-card payment plan of up to $2,000 per month, which would be acceptable to me, provided he also covers the 3% CC fees. So I'm offering a credit card payment option ;-)

If that doesn't work, then I'm off to the lawyer's office for legal advice. The university higher up's very probably have no knowledge of the project and will need a completely different type of communication -- one where my explanations could get legally messy if I'm not careful.

So here's my proposed email/letter:

---------------------

I received your response to my email requesting payment for consulting services rendered between April and September 2011 totaling $00,000.00. Your response indicated that XYZ employees did not follow proper internal authorization procedures, and that therefore, funds had not been allocated for these expenses.

However, XYZ's allocation of funds and authorization procedures are internal issues which do not affect the contractual obligation that was established by XYZ employees over the lifespan of the project. I had no reason whatsoever to question the apparent authority of the XYZ employees who requested, authorized, then actively collaborated in the work. I have fully met my contractual obligations and expect XYZ to meet theirs.

Payment for services rendered is now 180 days past due; further delays are unacceptable. Please provide me with a plan for payment in full by close of business Friday April 20, 2012. If your payment plan is acceptable, I would require the first payment by check or credit card no later than April 30, 2012.

Should acceptable payment arrangements not be made, I will have no choice but to pursue assertive collection through the university hierarchy and if necessary, legal channels.

A copy of this communication is being sent via certified mail to assure receipt.

Sincerely,
Sweeby, Sweeby's Superior Consulting

Sweeby, I think this is still too chatty, and offering the credit card option at this point is a mistake. Those are details that you can deal with once they agree to pay. Don't tell them how to do it and give them a way to delay paying you the full amount. You also don't need to repeat what they told you in their email - you say that you have it, they know what it says. Also don't talk about what you believed - that implies that there wasn't REALLY a contract, you just thought so - and that opens the door because your belief doesn't necessarily establish a contract.

I have taken the liberty of editing your last letter:

I received your response to my email requesting payment for consulting services rendered between April and September 2011 totaling $00,000.00.

The allocation of funds and authorization procedures are internal issues which do not affect the contractual obligation that was established by the actions of XYZ employees over the lifespan of the project. XYZ employees requested, authorized, and actively collaborated in the work.

I have fully met my contractual obligations and now XYZ must do the same.

Payment for services rendered is now 180 days past due; further delays are unacceptable. Please provide me with a plan for payment in full by the close of business Friday April 20, 2012. If your payment plan is acceptable, I would require the first payment no later than April 30, 2012.

Should acceptable payment arrangements not be received by the date given, I will undertake assertive collection measures up to and including legal action.

A copy of this communication is being sent via certified mail.

Sincerely,
Sweeby, Sweeby's Superior Consulting

Brilliant edit Les! Can I ask you two questions?

Did you read my reasons for offering the credit card option? Basically, it's so Director can 'hide the mistake' from his superiors in their 'miscellaneous' account. You still say kill it?

And your point about 'my belief' implying there was not a 'real contract' makes sense. But did you read Oakley's link about 'Apparent Authority'? That's exactly the situation here, so I thought including the phrase made strategic sense.

Les, you may have missed your calling. Very impressive!

Sweeby, why be concerned with how they handle their mistake? It's your money; that's their problem.

sweeby-

I agree with les and natal, do not suggest payment methods, just politely and succinctly demand payment, now. You did the work in good faith, the work is done, they need to pay, period. I agree with you that it's only a matter of the right person approving, and if the letter to this level doesn't work, another, more tersely worded "I did the work, you will now pay me" email should suffice, I truly doubt you will need to get an attorney involved for that kind of $$.

Good luck-

sandyponder

(tiny side note from a bystander: You all are amazing. I love this forum : ))

Thanks, Natal. I actually am in the process of deciding about going back to school for a paralegal certificate. Something I have long thought about doing, once I knew I didn't really want to go to law school and have my family at the same time.

Sweeby, I did read your information about the credit card, and there are two reasons said not to use it. First, it isn't YOUR problem to come up with ways for them to pay it, especially right now. You need them to agree to pay it - I am sure they are smart enough to know what options they have.

Second, and perhaps more importantly, you acquired that information in a back-door fashion, which may open you up to issues about how you got the work in the first place. Did you have an unfair advantage with a former insider (them being former may make that even worse)? Did they give you information that helped you get the job, or did they perhaps approve the work KNOWING they needed up-the-ladder approvals and telling you that, but that they would bypass that for you? Don't go there.

I would be careful about using the Apparent Authority argument. First, you don't really have a background in law to understand the details that make the principal applicable, and those details often matter a lot.

Also, if you read Oakley's link, the second paragraph could negate your argument, as it says the principal (the university's authorized person) must have committed and act or ommission, otherwise they are not bound by the acts of the agent. It doesn't sound like that happened in your case.

I would seriously consider contacting an attorney for a consult. They may charge you a few hundred to put a letter on their letterhead. I don't see any reason you would need a retainer or that they would charge you a contingency fee in a simple case like this.

"The purpose of a contingent fee is to reward attorneys for proficiency and diligence in prosecuting disputed and litigated claims, as opposed to rendering minor services that any inexperienced attorney might perform." Writing a single letter seems like a minor service to me.

We can all give you advice, and share what we think, but in the end the few hundred the letter and consult might cost from a legal professional is, in my mind, the wisest avenue for you.

You've had some great advice - the only thing I can add is what my son (an attorney) tells me when I'm writing a letter of complaint. Just the facts. No niceties, no explanations, keep it simple.

Very sound advice -- Thank you All!

Then Les's edited version it is, followed by an attorney consult if that doesn't work.

To your questions Les, while I was initially referred by the former insider (or perhaps by his boss, who was familiar with my earlier work), there was nothing close to 'improper' with my hiring. However afterwards, the insight into XYZ's political environment and perhaps the tip that their P-card procedures were flexible may have veered into the grey zone -- so I won't go there. You're right - They certainly know how and where to bury expenses they want to hide and won't need reminding.

Natal - Les has demonstrated brilliance in more than a few areas, so I can't imagine a single calling broad enough to encompass them all... We're lucky to have her here --

Fly - Amen Sister!

I used to run a purchasing card program. Don't be so sure that this guy can squeak a series of payments through to you. Trust me, there are alot of behind the scenes electronic settings at play on those cards.

Sweeby, thank you for the lovely compliment. I appreciate it.

Just to be clear, I was not suggesting for a moment that there WAS anything improper about you being contracted to do the work. The questions I raised in my last post were ones that I could see someone on the other side raising to try and show that you did not have a valid contract.

Not for a second did I think you had done anything out of line. If it sounded that way, I certainly did not intend that, and I am sorry.

Oh no! I certainly didn't take it that way at all, and knew just what you meant -- No offense taken.

I agree with les and natal, do not suggest payment methods, just politely and succinctly demand payment, now.

Yep. What she said. I wouldn't even go overboard with the politeness either - just demand what you're owed. I think the tendency in these types of situations is to get too wordy. You don't want to come across as anything other than a businessperson who is ready to play hardball.

Sweeby,

If you need the name of a baby attorney (i.e. young, inexpensive), I can ask around and get you the name of one. I hired a baby atty a few years back to send a demand letter to a doctor who was refusing to give my husband copies of his minor daughter's medical records. I did the legal research, wrote the letter and just had him put it on his letterhead. He did unauthorized research into what I had written and tried to charge me more, but I argued him down to his usual hourly rate--$120 and offered to pay him for an hour of his time. It worked--I got the records we had requested.

De

Thanks De - But if I'm going to need to go that far, I'll probably want a lawyer who's at least 'mid kid' or 'adolescent' ;-) You're right that I wouldn't need a $500/hour shark, but I'd definitely want one that could foresee the possible problems and shore up any weak spots in my case.

Guess I'll know by the end of the week...

Well, my email (Les's edited version) has been received. I sent it to Director with a blind copy to my Contact, who had been steadfastly on my side.

He called me a few minutes ago and expressed surprise and disappointment that the invoices hadn't been paid already, and said there was absolutely no reason he could see why they shouldn't have been taken care of. I told him that I had been informed that the project was unauthorized and that no funds were available. He said that was ridiculous and that XYZ had absolutely no ground to stand on. He said his team was still using my software and that it worked just as it was supposed to -- (Director's email to me had explicitly stated that they were NOT using my software anymore.)

Anyway, I told Contact that I figured Director's email was trying to see if I would go away quietly, and that I needed him to know that I absolutely would not, and that I would take whatever steps were necessary.

Contact told me the problem had already gone to the top of the XYZ pyramid (so VP and Sr. VP already know all about it) during his disciplinary procedures (he received a written reprimand) so any further communications from me are going right to the top of the XYZ organization.

Keep your fingers crossed!

Send your contact an email that summarizes your phone conversation. Get it in writing. Save the email. You may need it.

Seriously, from this point on, I would not talk about the unpaid invoices with your contact...unless he's calling you to tell you they are getting paid. If this is up to SVP level, it is probably in/near the Legal Dept as well. Build your case with paperwork. good luck.

Well it's Friday and I just heard back (via email) from 'Director' at XYZ. His response was to ask if I had a copy of a signed contract with Contact, and that if so, he has been given authorization to submit for payment. And "If I do not, let's discuss."

Well, he darned well knows I do not have a signed written contract -- out contract was verbal. I have a 'work plan' that was followed, and more than 100 supporting emails each way, but no 'written contract'. I also have a written proposal that Contact asked me to send after the bulk of the work was completed.

I left him a voice mail asking that he call me back to discuss and followed up by email that I would be in the office for several more hours so there was no reason to delay --

At this point my plan is to reply verbally that the contract was verbal, but that I do have numerous supporting emails and that my understanding is that oral contracts are legally enforceable.

I expect he'll say something to the effect that XYZ won't pay from an oral agreement...

===============================

Well, he just called back (I'm still shaking!) I did say that our contract was oral, and that I had submitted a work plan, which was agreed to and followed. He said they needed a signed contract to pay from... I said I had several hundred email documenting the progress of the work, and that at the end of the work, I had been asked to prepare an 'official proposal' that cited dollars for each aspect of the project. (I couldn't quote upfront due to too many uncertainties.) He asked if those had been signed and returned. (They hadn't.) Long pause... He said they certainly weren't trying to get out of paying since it was clear I had done the work. I said 'Um hum...' Then I suggested that if he signed the proposals I wrote at the end of the job (they were not dated), we would then have a written contract that he could process for payment - problem solved. And he actually agreed! I asked if he needed any more information from me, and he said he did not, and that he should be able to have a status report for me by Friday.

So fingers crossed -- and THANK YOU to all of my Forum Friends!

Now I guess I just need to 'confirm our discussion' in writing and follow up if I don't hear from him in a week...

That's fantastic news. You handled his telephone call like a pro. Good for you.

Sweeby, that is great news and I'm so happy it worked out for you. I think your post helped others too. I know I learned a few things following it.

That is great news! What a relief it must be to get this resolved. Congrats

Jennifer

Thinking about this and wondering what your status might be? Hope he has followed up and is in the process of getting you paid.

I talked to my contact on Friday and the check-cutting paperwork is in process. (It's been approved and has crossed his desk towards being cut.)

In the same call, he also informed me that he has resigned... Doesn't know where he'll go or what he'll do, but said he just couldn't work there anymore. A sorry state of affairs.

Sorry about what is happening to your contact. But good news that 'the check is (almost) in the mail'!

Yeah, I felt bad about that, and I know this mess had a substantial role in that... I just hope (and do believe) he'll be happier out of that political cesspool. I just hope it doesn't take him too long to find something else that's a good fit.

Woo Hoo! Check is in hand --

Drinks on me!

Hooray!! Good for you.

OMG, that is great news Sweeby, I'm tickled that it worked out for you. whew!!!

I love a happy ending!

YAY! Spicy Bloody Mary, please.

Congratulations! So pleased for you!

Great news, Sweeby!

I'll have a glass of wine if you are buying! :-)