One of my suppliers is demanding return of goods not supplied and demanding payment for the replacement of these goods. When asked for paperwork to substantiate these supposed stock losses nothing is forthcoming. Our company records can detail all deliveries and returns.
Presently the supplier has furnished an invoice for a ridiculous amount with the threat of court action. The same supplier has repeated this behaviour to a number of other businesses and taken some to court.
From discussions with the other businesses affected, the supplier’s legal representation is one of the supplier company’s directors.
There are a couple of avenues I suggest you explore for this problem. The first is a bit left field – which is to report the legal person to your State’s legal disciplinary body (eg. Law Institute of Victoria, Law Society of NSW, etc).
However, before doing that, you should get your story straight and your ducks in a row. Prepare a document summarising exactly what has happened, and attach copies of all the relevant documentation, so an independent person reading it can follow the chronology.
Approach the other businesses and ask whether they are prepared to put their complaints in writing for you to use – check whether they will sign a statutory declaration if it comes to that.
Be mindful that if this person is as dodgy as they sound, they might threaten to sue for defamation, so you want to make sure you get your facts straight.
These same documents could and should also form the basis of a complaint to your state’s “Office of Fair Trading” (or equivalent), and also the Australian Competition and Consumer Commission, so they will have to defend themselves on a number of fronts.
All this documentation will also be needed if they follow their normal modus operandi and issue legal proceedings against you for the debt.
Good luck!
James Omond runs his own Melbourne-based commercial legal practice Omond & Co, specialising in the area of intellectual property (trademarks, copyright, etc). He is a registered trademarks attorney, and was the Australian Young Corporate Lawyer of the Year (back in 1999, when he was almost young). James also advises on a broad range of commercial matters, such as buying and selling businesses, partnerships and joint ventures, trade practices, advertising, marketing and promotion.
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