The contract states that TX law applies. Independent contractor agreement to do inspection work for banks on delinquent/foreclosed properties in my state(not TX). Firm has applied actions to me that are not among the rights they have per the contract and kept nearly $3K that I have earned. Firm also is trying to charge-back for work that was clearly never assigned to me and when I ask about this, I get no reply. Contract contains broad indemnity clause. I am concerned about this indemnity clause causing problems because now I believe I will need to take the company to small claims court(breach of contract, conversion) to recover the money they refuse to pay for work already done. Is this kind of clause actually enforceable in TX today?
Hard to say without seeing the clause... but it likely applies to protect the company from third parties to which you might be liable. Read the contract again, consider getting an opinion from an attorney. Texas JP Courts have jurisdiction for controversies up to $10k.
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Without seeing the clause, the Avvo lawyers would merely be looking into their crystal balls, so best to scan it and email it to one of the local lawyers offering free consultations so you can get a meaningful answer. Avvo has a terrific lawyer finder tool to locate an attorney close to your home.
Your question is fact specific and you should talk to a lawyer. The indemnity clause usually protects the company against third party claims related to your actions/inactions in connection with the agreement. Because you mention charge backs and the company retaining some fees, it sound like the bank/servicers/customer has raised an issue with service provider in connection with your services and the service provider is now looking to you to cover any costs they incurred in association with remedying the issue.
Again, you should speak with an attorney to determine your options. Also, makes sure you have reviewed the entire contract and all additional documentation your services may be subject to under the agreement. In your line of work, service providers usually require their vendors to comply with the service providers manuals, guidelines and SLAs. Good luck.
My response is for general information, does not constitute legal advice and may not be relied upon by anyone for any purpose Additionally, my response does not constitute an attorney/client relationship or an offer to form any such relationship.
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