What did my friend do wrong?

batich · #1 09-08-2006, 05:46 PM

Hi!

Here is my friend`s situation.
He came to Sosusa after several short-term visits with decision to stay permanantely.

He opened a real estate business. Mostly just to have some activity as the man is sufficiently well-off.

He rented an office and bought office furniture.

He found a man to work for him (or with him?). Also originally from his country so they could speak their native language.

Their agreement (oral, nothing was done on paper) was as follows: my friend finances the business, the other person works, and they split comission 50%-50% after each RE sale.

Sometimes my friend leaves for a month or two to his country for a change.

Before leaving last year he gave his partner about $15 000 for "operational expenses" (pay rent and any other exigencies).

By his return all the money were gone for casino and chikas.

My friend was not much angry about it and said - you`ll repay it from the first transaction.

But not a single transaction ever happened. There were two or three very good possible deals but his companion lost them all being drunk in the most important moments or just forgetting about appointments with clients.

Finally my friend realised that this business is not good for him and closed it along with his office and wanted just to enjoy the life. Also he was about to forget about those $15G that his "companion" owed him.

But...

THe other man initiated a legal claim against my friend for not paying him salary (amount of claim - $15 000).

There were several meetings with my friend`s lawyer and fiscal. A bit bothering but nothing serious.

THen my friend again left DR for a short time. In his absence he was summoned to police (or to fiscale) again, but was not able to show up as he was abroad. And for non-appearence now an arrest order is issued against him and he is afraid even to come back to DR not willing to go to jail.

What did he do wrong?

What can be done to resolve his situation so that he could return to DR peacefully safely and securely without ever thinking about any business activity in DR?

THank you!

Tamborista · #2 09-08-2006, 05:57 PM

A. He did not chose his friends very carefully.
B. He did not put the deal in writing.
C. He left the fox in charge of the hen house in his absence.

azabache · #3 09-08-2006, 06:04 PM

Quote:

Originally Posted by Tamborista

A. He did not chose his friends very carefully.
B. He did not put the deal in writing.
C. He left the fox in charge of the hen house in his absence.

D. He caused much happiness for an untold number of chicas.

batich · #4 09-08-2006, 06:21 PM

Yes, I know he is a bit big fat and stupid. But some help must be found for him. To bring him back. He is good. I miss him. I cannot drink by myself!

Eddy · #5 09-08-2006, 07:02 PM

Quote:

Originally Posted by batich

Yes, I know he is a bit big fat and stupid. But some help must be found for him. To bring him back. He is good. I miss him. I cannot drink by myself!

Get him to email a reputable lawyer "Yea I know" and find out if in fact he will have problems when he arrives. If not, no big deal. If yes, have the Lawyer sort it out. Should not be a major problem. I doubt very much the "Culprit" has done anything.

batich · #6 09-08-2006, 07:10 PM

His lawyer is sorting it out now. But I am not sure how reputable she is.

And what to do to stop that person`s harassment? During all their cooperation he took from my friend 500-1000 pesos practically every day for personal expenses.

We were told that DR law is always on the side of workers.

And because of this workers often demand money even if they were paid in full.

And either won in court or are paid what they want just to get rid of them.

Is it true?

MrMike · #7 09-08-2006, 11:08 PM

Everybody has to learn this the hard way doing business in the DR. Dominican workers are "the gift that keeps on giving". Fire them at the first sign of trouble and never look back.

The longer you keep them around the more its going to cost to get rid of them.

They always put their best foot forward too, so take a good look at it, if you don't like that foot trust me; the other one is worse.

Oh, and once you are being sued for liquidation you have already been screwed. 99 times out of a hundred you have to pay what the worker asks for, if you prolong the issue you may have to pay much more.

Definitely get a lawyer involved, but not to try to get out of the payment, just to make sure that's all you are going to have to pay.

batich · #8 09-09-2006, 04:30 PM

Now I understand why another friend of mine is bringing two handymen from his country in Europe to do renovation to his eight small appartments despite paying over 1000 each for air travel and other their living expenses.

Instead of dealing with any dominican construction company.

It was a mistery for me.

Is there any possible way for a gringo not to be defrauded by locals in this country?

Or the best just to keep low profile, to rent,to drive some basic Toyota or Honda and to communicate with few very close friends/girlfriends only?

I love this Forum! I see I had so many misconceptions about dominican people.

Thank you everybody for sharing your experience!!!!!!!!

DominicanScotty · #9 09-09-2006, 04:40 PM

It needs nutrition.....hmmmmmm just a suggestion?

MrMike · #10 09-09-2006, 04:44 PM

Your friend is not necessarily being defrauded. Rediculous liquidation costs are a legitimate hidden cost associated with cheap Dominican labor. If your friend was foolish enough to do business in a country without doing basic reseearch into the legalities involved then whatever he pays he will be getting off cheap.

I know how he feels, I was in his situation once, I paid. I learned, and even so I have often had to pay more than I felt I should.

I have about 30 employees currently and I make sure that all of them are at least worth what it would cost me to fire them before I decide to keep them around long enough for them to accumulate significant liquidation costs. (generally 90 days - but by now I can tell if someone is going to be worth it within a couple of weeks)