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NSW Committee - Letter Of Demand From Former Leader

Discussion in 'Debt and Bankruptcy Law Forum' started by smarti49, 15 September 2014.

  1. smarti49

    smarti49 Member

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    Hello, I am a member of a committee we have just had a change of leadership within our group and the old group leader has handed over a bill for a substantial amount of money. As our Organisation and information handbook states that

    Payment of Group Accounts
    The Group Support Committee shall approve
    each payment from its funds. Payments, other than those of a
    repetitive or routine nature, shall be made only after consultation with the Group Council.

    I have gone through the minutes of the last nine months of meetings and no mention is made of the monies that are owed. no request for purchases made.

    We have paid one third of the bill and are willing to pay the other amount that is outstanding when we have the finances but we have just received a letter of demand from a solicitor instructing us to pay the amount in full within seven days. We have access to funds but we don't believe that we should have to dip into money that has been given to us in grants for other projects. We don't believe that this money should be paid as they did not follow committee rules as they were husband and wife and the only signatories of the account.
    My question is do we have to pay this money now and if we don't are we going to be up for the money spent by these people if they have to fight through a solicitor to get the money sooner. I mean are we in the wrong and do we have to pay?
     
  2. Sophea

    Sophea Well-Known Member

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    Dear Smarti49,

    Unless you feel you have grounds to dispute the former Leader's entitlement to the funds claimed, which does not appear to be the case since you have already paid 1/3 of the bill, yes you have the pay the remainder of the bill. However the fact that you have already partly paid the bill does not prevent you from defending the claim on the basis that you dispute the amount of the debt.

    If the bill or the contract that you had with your former leader does not stipulate a time for payment then the law will assume that the monies are payable within a "reasonable time".

    If he does decide to incur legal costs in recovering the debt from you. Yes you may ultimately be liable for legal costs as well.
     
  3. Tim W

    Tim W Lawyer

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    What is the nature of the amount being sought?
    Is it re-imbursment for bona fide expenses incurred?
    Is the claim supported with Tax Invoices?
     
  4. smarti49

    smarti49 Member

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    Hi thanks for the questions. The monies being sought are for purchases made for the group. The committee objects to paying now as it will leave the group non financial. the claim is supported by tax invoices but the items purchased where not passed by the committee before purchase was made. Many of the purchases the committee feel are extreme for such a small group.
    Hope this helps.
     

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