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Contractor Dilemmas - Moral and Financial Obligations?

Posted by Cliff on from the issues-that-go-over-better-with-discussion dept.

An Anonymous Coward asks: "This is a true story, one that I am currently trying to resolve and wondered if the Slashdot community could offer any help. I've been developing a new application for a startup company, contracted on a daily basis for my services. I've been providing services for 5 weeks now, and am still trying to get payment for work completed during week 1. The company is refusing to pay me, stating that they are not happy with progress, however all of the milestones we agreed upon for that week have been met. Now, it gets interesting: I know that this company is seeking startup venture capital, and I know from whom. Yes, it would be malicious to contact this party with the information that I have, but am I morally obliged to? If you were set to pump several million into a company with loose moral fibre would you not appreciate a warning?"

3 of 79 comments (clear)

  1. Well, by Echnin · · Score: 2, Interesting

    I personally think you should "confront" the company first, and I mean "confront" as in "threaten". If they still refuse, go ahead.

    --
    Lalala
    1. Re:Well, by markwelch · · Score: 3, Interesting
      Echnin suggest confronting the client by threatening to report their wrongdoing. I disagree, emphatically, since this might constitute extortion, which is a crime.

      California Penal Code Section 518:

      Extortion is the obtaining of property from another, with his consent, or the obtaining of an official act of a public officer, induced by a wrongful use of force or fear, or under color of official right.
      California Penal Code Section 519:
      Fear, such as will constitute extortion, may be induced by a threat, either:
      1. To do an unlawful injury to the person or property of the individual threatened or of a third person; or,
      2. To accuse the individual threatened, or any relative of his, or member of his family, of any crime; or,
      3. To expose, or to impute to him or them any deformity, disgrace or crime; or,
      4. To expose any secret affecting him or them.
      --
      -- http://www.MarkWelch.com/ Pleasanton California
  2. hairy situation by tongue · · Score: 3, Interesting

    With regards to ratting them out to the VC's, I'd watch out that you don't violate any NDA's or something of that nature.

    As for the non-payment, your course of action is fairly limited. If it were me, I would notify them that if they don't pay you for the work completed thus far, you will stop work altogether and have to resort to a lawsuit. I'd also consider dropping that company from your client list altogether--given how much trouble you have collecting from them in the first place, I wouldn't be anxious to take on more work from them.