doctrine of estoppel and delivery of paychecks?

Question

ok, started a new job working thru a contract service, pay is supposed to be once a week, first check due on july 14th. by july 17th check had not arrived, called service, they looked into it, check was sent to my old address, but mail was forwarded should be there in the next day. so sent bills off, 19th rolled around no check, spoke with yet another person, someone called the morning of 20th, faxed me paper work to stop payment and issue new one (was told this would be overnighted to me) so on friday the 21st no check, no big deal, will be here on Saturday, told me it was over nighted, 22nd rolls around no check, I had already sent bills again on friday in anticapation of deliver (based upon what they said to me) on mondya the 24th I called, stop payment had not been done yet, finally they did it and check arrrives on the 25th. Problem is that between the 20th and the 26th, I incured 10 fees at my bank for a total of 290$ would the promissory estoppel apply here, they are unwillin

for the record not all of these items were checks and I offered to shoulder the burden of those, the 6 items on the 25th and 26th were direct payments. of which after being assured by the contract service on the 20th that a stop payment and a new check was to be overnighted, I saw no need to try and stop. The 6 are really the bitter pill to swallow as I probably could have stopped them or at least delayed the payments if I had not been told that a new check was being overnighted on teh 20th of July, which would have put that check in my hands on the 21st, well in time to make the direct payments slated for the 25th and 26th. this is what I have issue with

Answer 1

Promissory estoppel does not really apply. What applies are check-kiting laws.

Back in the good old days, we could get away with writing checks in the hopes (reasonable anticipation) that the checks would be good when the banks got around to processing them.

It was illegal (cannot write checks when you know there are no funds in the account), but routinely done.

Now, however, with everything being done by computer, it is almost impossible to kite checks and get away with it.

You wrote checks knowing there were not funds in the account. The bank fees are legal.

Now, the contract service is delaying payment. You can probably bring a claim against them, not for promissory estoppel, but for breach of the contract itself. (promissory estoppel is where there is no contract). Your "consequential damages" could include the bank fees incurred. Its a stretch, but its an argument.

Good luck.

Answer 2

The doctrine of promissory estoppel is related to the doctrine of detrimental reliance.

Both require actual reliance on what someone said they would do, but they also require reasonable reliance. Meaning that a reasonable person (under an objective standard) would also have relied as you did, and also that your actions were reasonable in response to the promise.

There is also the doctrine of avoidability of consequences, which says you can't recover if you acted unreasonably and increased the consequential damages you suffered.

If you have deposited a check in reliance on their promise that it was good, and it wasn't, that's one thing. But writing other checks in anticipation of receiving a payment is a whole different kettle of clams.

Answer 3

Fool me once ........
You wrote the checks w/ out the funds. It would have been wiser to let the bills go and and then ask for the employer to pay the fees and interest incurred because of their foul up.
It's like cutting in front of a car that has it turn signal on but doesn't turn. That collision would be mostly your fault because you did not wait for her to actually turn.
I feel your pain though. Maybe they'll let you put in some overtime to recoup your loss. Get direct deposit too.

Answer 4

I am not sure that would apply here. I think it is reasonable for you to ask the contract company you work for to pay the $290.00 if the incorrect address was their fault and was not provided by you. (I had this happen - the data entry person transposed two numbers - clearly their mistake).

And it seems like you actually were paid late on two checks, the 14th and the 21st.

I would definitely contact the branch manager of the comapny (or higher) with all the facts - who you talked to, when you talked to them, the promises that were maid vs. the actual actions, the effects, etc.

Answer 5

promissory estoppel requires reasonable reliance. You have the burden to prove to the jury that sending out your bills before you had verifiable money in your account was indeed 'reasonable'. I don't think you will meet your burden.

Answer 6

You can call your local city or state government. Most states have a law that your place of employment CANNOT hold your pay from you, especially for that length of time. I would call them and call an employment specialist attorney, their 1st phone call or consulitation is always free and they can let you know what your options are about the bank fee. Thanks.