A manufacturer did not finish the job after fully paid

UPDATED: Oct 1, 2022

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A manufacturer did not finish the job after fully paid

I paid a factory in full to produce certain number of garment pieces. They did not finish the job, and stopped replying my email. I paid by a credit card, so I did a chargeback to at least get them start talking about refund and negotiation based on purchase order terms and contract. They are not responding to my credit card company but instead threatening me with a lawsuit I told them I’ll release some of the fund for what they actually did, however won’t cancel the chargeback because they didn’t finish the job. They still didn’t do anything, so I went to BBB to get them respond to my credit card company. Long story short, they made up numbers and claimed that they nearly finished the job. How do I proceed from here? I guess I can pay them for what they deserve after the chargeback is complete, sending them details of what I deducted from the full payment I originally paid them. Yet, is it likely that they would sue me for the chargeback at that point? If they do, it’ll end up in small claims court and I do have much more detailed evidences than what they have.

Asked on February 18, 2019 under Business Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

You seem to understand the appropriate way to proceed: pay them for the work they actually did, sending with payment of breakdown/explanation of what you paid them and why; and be prepared if necessary to defend yourself in court if they sue for the balance by proving the terms of the agreement (what they were supposed to do) and that they breached that agreement by not completing all work.

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