Lightning Source/Ingrim...are they serious about setteling this?

Howdy;

Well I decided to push the issue about Lightning Source/Ingrim paying me what they owe me per the contract that we have signed.  As of November 1, 2012 the first amount due to me is $674.52.  December 1, 2012 the amount due is $853.30, and as of January 1, 2012, the current amount is about $137.38; for a total owed to me of $1,665.20.

Lightning Source/Ingrim claims that I owe them $2,466.14.  This does not include $160 in payments, nor the removal of a $312.00 invoice for services not received.  Apply these items, and I owe them by their records $1,994.14. 

That means, if you apply what is owed to me and what they claim I owe them, I would be left owing them $328.94.  That's it.  They shut down my business over a sum of $328. 

This is what I don't get.  Up to the time they closed out my account, I was averaging $750 a month in income from book sales directly through their site. That means if they had not closed my account, they would have received all the money they claimed I owe, plus made money on top of that, and would continue to be bringing in more money.  Am I the only one to see the stupidity in that?

Which brings me back to the real issue.  LSI got caught doing something wrong and they choose to try and blame me for owing them money as to the reason they closed out my account.  Now mind you, I was only two months behind in money owed, and based on our payment agreement, I was only 1 payment behind.  Not six months, not a year, only two months!  Is any of this making sense?

None the less, I sent out emails to three people at LSI this morning asking where my money was since they had hired an outside attorney to demand payment in full for $2,466.14.  Legally you can not demand payment in full for an amount owed, and hold funds that are owed to the person, after they had already agreed to have those funds applied to the so called debit.  By doing so, they are double dipping: they are getting payed twice for the same debit.  That is illegal! 

Here is the response I got from one of their VP's:

The Pub Comp was factored into the original payment plan as a partial offset to what is owed to Lightning Source. The July pub comp balance, (paid in Oct) was $22.26.

Best,

Debbie

Debbie Jackson, CCE

Assistant Vice-President, Credit Services

Ingram Content Group

Here is my response:

Yes it was.  However, since you cancelled the agreement and have since hired local attorneys to represent your company for the full amount owed in the original agreement, plus an additional unknown sum, I am entitled to all funds owed to my company.

Therefore, failure to pay the funds in a timely manor as outlined in the contract that existed at time of said earnings, your company is not only in full violation of the contract, failure to pay is now considered thrift of service and is punishable by law.

Thus, you and your company have until 5 PM central time on Tuesday, November 27th 2012 to have the current amount owed to my company in my hands.

I suspect you will find every excuse possible to not pay it, which will add to my law suit against your company.

Their Attorney's Response:

Will you provide me with the name of your attorney to discuss this matter? 

Pursuant to Section I(C) of the Lightning Source POD Agreement, signed by you, "LSI reserves the right to offset any Client past due balances for services performed under this Agreement against any amounts LSI may owe Client."  You currently owe approximately $2500.00, of which $1600.00 in Publisher Compensation will be applied to the past due balance, leaving approximately $800.00 still owed to LSI and are past due.  These amounts may change if books are returned within 180 days of termination. 

As stated previously, I would like to resolve this issue as efficiently as possible and am interested in discussing with your attorney, or you if not represented.

Thank you,

Josh Dailey

Corporate Counsel

Ingram Content Group Inc.

My Response:

Dear Mr. Dailey,

I had sent you three emails to resolve this issue fairly, but you ignored my last two emails prior to today outlining a resolve.  Thus, I don't believe you are serious in your statements.

In addition, you can not hold my money or apply them to a balance owed when your company has hired outside legal representation to collect on the full balance, ($2,400) and an additional unknown amount.  Since the Austin law firm has been directed to collect on all funds, and since the agreement that I entered into willingly with your companies staff was cancelled by your staff, your company gave up all rights to any funds owed to me.

Therefore, I once again remind you that you have until 5 PM central time Tuesday, tomorrow to have the funds of $1,600 plus change in my hands before I file theft of service charges.  Granted it won't result on any one in your company being arrested, it will assist my case in federal court and most importantly the court of public opinion.

The fact that your company is trying to collect on an invoice that was issued after the repayment agreement was made, and which does not apply once the contract was cancelled is not acceptable.

Your companies continued support of the damage that Mr. Killebrew did to my company, and the resulting irrevocable damage done to my company because of his actions and lies is un-acceptable.

I continue to leave the door open to a fair and reasonable resolve of this situation up to the day that we file suit for damages.  However, it is clear that you can not stop your staff from continuing to add insult to injury to my company.

If you are sincere about resolving this issue, I strongly recommend that you create a reasonable and fair offer real soon.  Damages keep piling up against your company.

With Respect,

 

His Response:

 

I did not respond as reopening your account is not an available option, however I am serious about resolving your concerns.  LSI does not owe you any money, but you do owe approximately $800.00 after offset is taken in account to LSI.  Contracts do not dissolve simply because they are terminated.  Would you like a copy of the Agreement?  The Agreement between Food For Thought and LSI was to either, print the titles you had the rights to as you directed or to offer the titles available to retail channels.  Do you believe LSI did not honor one of these services pursuant to the Agreement?  I ask this question to ensure we both understand our side to this discussion.  You also mentioned the availability status of your titles changed, which I could not find any record of LSI making changes.  Availability may be changed by individual retailers we do not control and does not affect the availability LSI shows for your titles.

I do want to resolve this and hope you reconsider my previous offer as I believe it was fair and reasonable to both.  Is there another offer you propose? 

Thank you for your time,

 

 

My Response:

 

Dear Mr. Dailey;

 

I get that you want to keep referring back to the contract that was signed between myself and Lightning Source, you are betting that I am dumb enough to think it’s the holy grail as far as you are concerned.  Sorry, but you and I both know that when representatives of your company agree to do something in an email that act can alter the contract, and it becomes part of the contract.  In addition, when your financial team wrote out an agreement, and then altered it right after signing it, and then not notifying me at any time, that is a major legal issue.

 

I have a witness willing to testify that Lightning Source deliberately changed the status of my books that were listed for publication with your company.  That action caused harm to my company, plain and simple.  The damage done by Mr. Kilebrew along with other damages has forced us to close down our company.  This is all due to your company’s actions. 

 

In addition, the fact that your company closed out contracts with other companies that may or may not be related to this business, also indicates the intent to harm my business both directly and indirectly.

 

You can quote the contract all you want, but you and I both know those emails by every staff member of your company will be added to the contract and I will receive a very sweet judgment from your company.  So show me some respect and stop jerking me around.

 

I had offered you a settlement nearly a month ago that you should have taken then before your staff members continued to harm my company, but you choose not to.

 

It should also be noted the contradictions between you claiming I owe LSI $800, which is not correct due to the cancellation of the contract, and the fact you hired out side legal assistance and they demanded payment in full for an amount that is not accurate will not look well in the courts or juries mind set. 

 

LSI has screwed up big time.  Therefore, here is a finale offer to you:

 

LSI will wipe out all claims of money owed by Food for Thought Books, Inc.

LSI will pay out in a cashiers check made payable to a person of my choice for $5,800.  That’s double what your company is claiming I owe it and an extremely small settlement compared to what could be in the millions I will otherwise get.

You will cancel any and all agreements without side legal assistance and or bill collectors immediately. 

LSI will NOT show me or my company in default for any claims by LSI.

In exchange, I will sign an agreement that states that neither party knowingly did anything wrong, or how you had worded it last month.

 

I suspect you will laugh at the offer and that’s fine.  But, let me be very clear with you.  I have not discussed one critical item with you during these emails that guarantees a win for me.  If you are willing to spend thousands of dollars to defend your company and take a chance on winning your case, then go for it.  You will have to ask yourself, and discuss with your company officials, is it worth it?  Can this one unknown item cause so much public outcry that it could damage the reputation of LSI to a point that they will loose more money then what the payout will be?

 

The choice is yours.  You have until 5 PM CDT, Tuesday, November 27, 2012

 

With Respect,

Ok, I know enough to be dangerous, but not enough to really win the case in a court of law.  The reality for me, and this is MY reality, is that they are not serious about resolving the issue.  They screwed up several times, and they think they can Bully me into submission.  Sorry, I'm tired of that BS!  Their actions caused harm to my business and to my Authors. 

But, sadly, at this moment I don't have the money to sue them, so they win.  The only thing I can do is to post on here and hope people get the idea that you have to stand up for your rights.  We are the consumers, and we have the ability to demand respect, fair prices and quality products.  LSI and others jerk us around because they have the mindset that they can Bully us into submission by use of Attorney's and their legal wording.  They screwed up, and just like when I screw up as an individual or as a small business, I have to fix it and make it right.  They should too!

Life goes on...I go on