Okay, stick with me… this may take a little explaining.
I recently viewed all three of my credit reports and was dismayed to find out that there was a $3000 outstanding court ruling against me. Thinking back and asking around, I came up with the following:
Several years ago, with the help of a friend (we’ll call him Nick since that’s his name), I started up a single-owner business. Nick acted as a consultant and accountant for me, but never was an employee. He also had a business on the side, building computers and often helped me by providing me with funds for my business.
One time, he build a computer for a college guy for about $3000. Nick wanted to give me the money to help fund my business, so he signed the check over to me, and I cashed it in my business’ name. However, it became apparent that Nick’s customer was not satisfied with the computer and eventually wanted a refund. Nick refused to do this on the basis that all sales were final. There’s more to that portion of the story, but I don’t think it’s relevant here.
At the end, the customer decided to sue Nick, but was unable to do so since Nick didn’t have any listed address and was unable to serve him. Frustrated with this turn of events, the customer turned and sued me, on the basis that I cashed the check and therefore was responsible for the sale of the computer. I would have disagreed on the idea that I never entered into a contract with him, either verbal or written. In fact, I have never met the guy.
Well, by this time, my business license had expired, and I was 500 miles away at college. The sherriff ended up personally delivering papers to my grandfather, who never told me about them under the assumption that since I wasn’t phsyically served, no case could be brought against me.
Apparently the fact that it was served to a family member was good enough. The case was brought against me and since I didn’t know about it and I was away at college, I never showed up. Because of this, the ruling was automatically in favor of the plaintiff for the full amount.
Nick’s customer got his money from the state (California, BTW) and an outstanding balance was placed on one of my credit reports. It has not even been attempted to be collected; I have never been notified of the details of the ruling. I’m guessing that the customer is happy and the $3000 has been well spent, as well as getting to keep the computer.
IMO, I was in no way legally responsible for this problem, so I would like to go about getting this decision either reversed or removed from my credit report. Obviously, Nick’s customer is not going to give up the money and the computer (a pentium 66 system) is nowhere near $3000 now, even if he did have it and could return it. The clerk at the county that I talked to said that since I was served (via my grandfather) and since I did not show up, I was guilty. I would not be able to appeal it or anything of the sort.
So, I turn here, to the SDMB, for your help. Is there a way for me to get out of this mess?
Epilogue before the credits role: I broke my friendship off with Nick, for various reasons that I will not go into here. Last I heard, he was still moving from friend’s house to friend’s house, while preaching at a Greek Orthodox church, living of what little money they pay him. I hope that I never see him again.