Billing dispute legal question

[rustyboy]

In April, my house was significantly burnt by a fire. It started outside, pets were saved by neighbors, we weren't home, it is all replaceable. Initial insurance offer for house structure was $100K lower than I expected, so two days after I received the initial check, I hired a public adjuster. PA works for 10% fee of settled funds, I have the signed contract.

At the time of signing, it was implied that services not used would not be billed by PA. For example, I was not/have not been/ do not expect to be billed by PA the contents of my house, as the insurance company has been quite fair with me on it, and I have done all leg work associated with it.

Fast forward to now. I have settled with the insurance for my structure. I have initial check, made out to me and my mortgage company. Current check is made out to PA, me, and mortgage company, per my contract with PA. PA sends me invoice to pay up prior to them endorsing check, which includes the 10% of funds from the initial check, which I already have, which PA did not provide service for, etc.

I have to get check from PA to get contractor started before my insurance policy stops paying for my current living situation. To say I am in a pickle would be an understatement.

Do I have an argument on the initial check fee? Do I pay the invoice amount and go to small claims for the initial check fee? If I make check out for what I believe I legally owe, PA won't endorse insurance check, and I can't start rebuilding my house.

All input is appreciated.

 

[the_great_white]

wow, sounds like quite the situation there. wish i could be of some help to you. it may be worth consulting an insurance atty.

 

[SteelRinger]

If the contract states that the PA gets 10% of the settled funds, then it sounds like you are up poop creek. If it had stated that he was entitled to 10% of the difference in initial settlement and final settlement, or 10% of funds received due to his services, then I think you would have a case.

I would have an attorney review the contract and give you advice, but you may have to cough up the whole 10% and chalk it up to a learning experience in reading contracts before signing them.

 

[Badger]

This is the kind of question you really should consult with an attorney knowledgeable in contract law on, you have too much money on the line to waste time with layman advice on a public forum that in the end will only result in more cost and inconvenience for you.

 

[Laxguy59]

Questions to ask yourself

You sign a contract? What did the contract specify in regards to what was billable?

 

[captdave77]

It sounds like you agreed to pay the public adjuster 10% and now he expects to be paid 10%. Unless he failed to uphold his end, I am guessing he is due 10%.