Owner entered into contract with client to have guard on premises for certain days. Owner told manager to get Contractor guard to perform services. Manager said they did that and that contractor performed the guard services. Manager paid Contractor and demands reimbursement from owner. Client says guard not there and refuses to pay invoice. Cameras on premises back up client's claim. Manager cannot produce any verification that guard worked and guard did not sign time sheet.
Manager tells Owner "pay me or I will sue you". Who is responsible? Who takes the monetary loss? Can owner claim loss on income taxes?

  • Owner, Client, Guard, Contractor, Manager are some of these the same people? Please simplify your question. Commented Mar 30, 2023 at 5:56
  • NO. The Owner is the Owner (A). The Client is the Client (B) who wants a guard. The Contractor Guard is the Guard, (C) and they are a Contractor not any Employee. The Manager (D) is the Manager of the Contractor Guard. The Owner supervises the Manager. The Manager supervises the Contractor Guard.
    – user139376
    Commented Mar 30, 2023 at 7:13
  • 2
    Why does the manager need to get reimbursed? Do they pay company expenses out of their own packet? Why don't they sue the guard, instead of each other on who to eat the loss?
    – nvoigt
    Commented Mar 30, 2023 at 7:16
  • Hi, and welcome to workplace.SE! Unfortunately, your question is unclear and will likely be closed shortly. Please edit to add the details requested in comments. Also, try to give some context - what type of company is involved, relationship between owner and manager, etc.
    – sleske
    Commented Mar 30, 2023 at 8:32
  • Owner pays Mgr Annual Salary to handle all Employee & Contractor Guards for Owner. Both Owner & Mgr have their own separate Guard Companies. Mgr also works for Owner. Mgr often pays Contractor Guards who worked for Owner, & is then reimbursed by Owner, as convenience. Guard is Contractor Guard w/little $. Suing him would be futile. Owner says it was Mgr's fault because he paid Contractor Guard before the Client got the Invoice. Mgr says it's Owners problem because he was paying Contractor Guard as a courtesy to Owner, & he wants to be reimbursed.
    – user139376
    Commented Mar 30, 2023 at 9:53

1 Answer 1


Who is responsible is a legal question.

Typically, these questions are answered on a balance of probabilities.

If one party can provide evidence that supports their claim, and the other party cannot, then a judge is more likely to agree with the first party.

Note that in most situations, the party without any evidence supporting their claim will instead decide to pay rather than face an expensive legal battle.

In this particular instance, distilling it all down, you have:

BusinessA <-> BusinessB <-> BusinessC

If BusinessC didn't fulfil their obligations, then BusinessB has breached its contract with BusinessA, as BusinessC has breached its contract with BusinessB.

Ultimately in such a situation, BusinessC would be responsible. Because they have already been paid, BusinessB would want to press them to repay.

Typically BusinessA would have no interest in the business relationships between BusinessB and BusinessC. From their perspective, BusinessB has not performed according to contract.

  • I'm not sure that there are three businesses involved, though I'm also not sure why an employee would have paid for a contractor out of their pocket and then threatened their employer with a lawsuit over it...
    – nick012000
    Commented Mar 30, 2023 at 7:22
  • Thank you all for helping with your answers. Sorry that it's so convoluted. But you have been helpful.
    – user139376
    Commented Mar 30, 2023 at 10:01

Not the answer you're looking for? Browse other questions tagged .