Financial- Hanna, McEldowney & Associates

Home Browse Search

~ ~ From: MICHAEL HANSEN To: GWM2. M-EDISON(ELYON) Date: 10/7/97 9:20am Subject: Unpaid bills -Reply Elyn, I have looked at two agreements. The first is a"Buyer's Broker Employment AgreemenY' signed by Dan Berrey on September 1, 1996. I don't know if Randy ever executed this agreement. I assume so. The agreement provides that Dan was our agent for the purpose of acquiring the three properties, including doing the relocation assistance. We promised a fee of $23,000. The agreement does not expressly provide for any fees, except that upon termination, Marion County would pay an "authorized out-of-pocket expenses". The second agreement is the mutual release. It says that Marion County and Transit will pay Dan's outstanding bills from the architect and the general contractor. It makes no provision for other unpaid expenses. I conclude that we did not deal with issues such as the one you presented. It is a fair inference from the first agreement that Dan, as our agent, would negotiate the deal, and the county would pay the acquision and the relocation assistance benefits. The question is whether we authorized any out-of-pocket expenses--such as hiring a relocation consultant, or whether Dan hired the consuftant for his own purposes and agreed to pay him. The release does not address this issue. There are two sources of information. One: Randy. Did he authorize hiring a consultant and agree to pay the cost? Two: The consultant should have an agreement with Dan. What does the agreement say? (If it provides that Dan, as agent for Marion County, hires the consultant and promises that Marion County will pay, maybe we are stuck. ~t becomes an issue of the extent of his agency. I think he could negotiate sales and relocation benefits. f don't think he could hire people and expect us to pay unless we authorized it expressly. So, we are back to question one.) Given the dollar amount, you will also need to do a practicality check. Is it better to pay the $200 and keep the consultant happy, or send him back to Dan to pay up on his debts. If you decide to pay, why not ask the consultant to just invoice Marion County directly. We can take a position that we have an agreement, through our former agent. Just be sure the payment is in full for everything the consultant may be owed. We don't want to wind up paying other bills.