QUESTIONS RELATIVE TO PRESENTATION ON RANDOM LEGAL QUESTIONS – PART A

There are a number of different dot.com services that rate lawyers through peer solicitation approvals and other such devices. One such dot.com business is styled Avvo;
As an adjunct to their rating services they have an open forum for various legal questions to which many answers are provided by various lawyers seeking to be rated by Avvo.

So, I am utilizing a number of those questions in this presentation/ article for the blog of Steven H. Wilhelm, APC

QUESTION #1-
If moving out of state, do I have to pay local dentists balance due on Orthodontics even though not finished with procedure? 30 month contract at $125 month. They want $750 to close contract. 1 ½ year to finish dental work but they have no franchise in order to transfer services from FL to IN. Must find and pay another $5000 + for a new dentist.

ANSWER TO QUESTION #1—At the risk of sounding too much like a lawyer, ‘it depends upon the language of the contract’; for instance is there a termination clause within the contract that spells out either a termination fee, or some other type of payment required to cease the dental work.
Often times, and this is possible also, where professionals are taking these type of payments over time, they require some type of insurance coverage that pays for the balance of the contract if early termination of the contract.
I have seen this personally years ago when my children were in private school. If you terminated the child’s schooling before the school year was up, then you had, as part of the bargain paid for an insurance policy expressly designed for this type of occurrence, which would then fund the balance of the payments on the contract triggered by early termination of the contract.

Otherwise, it is really between the parties to try to reach an accord/settlement resolution.
My guess would be that most professionals such as dentists, would agree to a termination of the contract so long as you were paid up for services to the point of termination.

On the other hand, if you don’t resolve the matter before leaving the area, they will most likely take you to small claims (since the work the was contracted for occurred here) and likely a court would award them at least their fees through the time of termination, or possibly for the balance of the contract.
Of course if you are out of state , who cares right?
Well not exactly as , if a judgment is obtained against you in one state, once it is final, (usually within 60 days of being entered) then that final judgment can be sent to an attorney or a collection agency in the state to which you move, and then that judgment can be entered in that other state, with all of that state’s levy and execution of various properties then available to persons in that state against you and your property in that state.

The moral of the story is yes, you should pay some type of reasonable termination fee , or else suffer the possible consequences of a judgment being on your record in this state and the other state to which you move in the future.

QUESTION #2
Can I endorse a check written to my dissolved corporation? I had a corporation and recently dissolved it. I did not have any partners, I was the sole proprietor. I just received a check written to the corporation, not me. Can I deposit the check into my personal account or do I need to get it reissued in my name. Again, I was the only individual in the corporation but it is no longer in existence. My business closed. I am inclined to just deposit it. My bank knows me, I am sure they will allow it, but I don’t want to do anything wrong.

ANSWER TO QUESTION #2– well my recent experiences lead me to believe that banks will allow you to deposit most any check into your account or at least into your ATM.

Legally however, once your corporation was dissolved , that entity no longer exists and thus to cash the check in the name of the company, i.e. by endorsing the companies name could be set aside by any creditor of the company.

What you do in this case depends upon your relation with the bank more than what your legal rights truly are at the time.
If you have a strong relationship with the bank then the most likely will allow you to deposit it into your account.

If you were going to simply cash the check the bank might have a different viewpoint since the cash will be walking out the door. Frankly, you will simply have to approach the bank to see what works for them.
Worst case scenario you go back to the issuing party ; show them you were the corporation; you dissolved the corporation; and you are the distributee of the assets and liabilities of the corporation and as such the check should be issued to you.

Respectfully Submitted,

Steven H. Wilhelm

By | 2015-06-16T10:06:02+00:00 June 16th, 2015|