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Lap2 committed several serious breaches of his contractual duties to the owner, thereby leaving lap2 in debt to the owner.
The law allows the owner to deduct lap2's debt to him from lap2's share of the prize (or from any other amount which the owner may otherwise owe to lap2).
If lap2's debt to the owner reaches $5,700 (the amount which otherwise would be his share of the prize), then no part of the prize would be left over for lap2.
The claim by lap2 and the counterclaim by the owner make up a genuine business dispute.
Business disputes often occur.
That's why we have courts.
The amounts here are less than the maximum "jurisdictional amount" in the general-sessions ("small-claims") courts in Tennessee, so it would be proper to take this dispute to a general-sessions court.
In Tennessee, by the way, we do not have courts specifically called small-claims courts.
However, we do have a level of courts -- the lowest level of trial courts with general subject-matter jurisdiction -- where it's common for a party to appear by himself without an attorney -- called the courts of general sessions (sometimes called the general circus) -- which function as small-claims courts.
If lap2 sues the owner in a general-sessions court, and if lap2 appears at the appointed time, and if lap2 (in the view of the judge) sustains his burden of proof (by a "fair preponderance" of the evidence), then the owner has an opportunity to present his testimony and other evidence for his defense against lap2's claim and for his own counterclaim against lap2.
After the judge hears the evidence and the arguments from both sides, then the judge may rule in any of several ways, including these:
The judge may hold that lap2 has not sustained his burden of proof, in which event the judge will dismiss the case.
The judge may hold that lap2 is completely right, and that the owner is completely wrong, in which event the judge will order the owner to pay lap2 for his share of the prize.
The judge may hold that lap2 has a valid claim against the owner, and that the owner has a valid counterclaim against lap2, in which event the judge will order the owner to pay lap2 for the difference between lap2's claim and the owner's counterclaim (maybe a difference of $0).
The judge may hold that both the claim and the counterclaim are valid, and that the owner's counterclaim is larger than lap2's original claim, in which event the judge will order lap2 to pay the owner for the difference between the claim and the counterclaim.
The judge may hold that lap2's claim has no merit, and that the owner's counterclaim is completely right, in which event the judge will order lap2 to pay the owner for his counterclaim.
Of course, the judge also may make a decision somewhere within the outside corners of those alternatives.
At least two other possibilities also exist:
The judge, after hearing the evidence and the arguments, may decide, despite the respective merits of the two sides, that lap2 does not deserve the help of the court -- because of an ancient "maxim of equity" which says that if a person seeks justice from a court, he must enter the court with "clean hands" (or sometimes "clean hands and a pure heart"). That is, the judge may hold that lap2's hands are not clean hands, due to his previous behavior toward the owner.
Without specifically referring to the clean-hands doctrine, the judge, after hearing the evidence and the arguments, may decide that "it's not in the interest of justice" (due to the previous behavior of lap2 toward the owner) to order the owner to pay lap2 for his claim. (Yes, the judge has the discretion to do so.)
What matters here is not what any of us may think or feel about the competing claims or about the parties themselves.
What matters here is what the law requires or allows -- and what a judge may decide.
One incidental point: When an owner-operator leaves a carrier, a federal law allows the carrier up to 60 days to make the final settlement -- 60 days for the carrier to discover any amount which the contractor may owe to the carrier -- and to deduct (from the final payment to the contractor) the contractor's debt(s) to the carrier. By extension that law seems to provide a reasonable rule of thumb when a subcontractor (for example, lap2) leaves a contractor (owner-operator).
Speaking as a former professor of business (who specialized in business law), it appears to me that -- overall -- from a business viewpoint -- lap2's case is not a very strong or persuasive one.
Naturally, that's just the way I see it.
Sorry 'bout the length and the windiness.
Best wishes to all,
Doc.
professor of business, 1977-86
independent businessman, 1986-89
second-generation professional driver (mostly as owner-operator), 1976, 1989-2001, 2003-
volunteer worker aboard Mercy Ships, 2001-03