Legal Issue Escalation Process
Purpose
Defines how Spartan identifies, escalates, and responds to legal issues — from unpaid invoices to customer disputes, employee claims, and any situation that may require legal counsel. ## Who This Applies To
Josh (owner) as ultimate decision-maker. All team members who may encounter a legal trigger. ## Legal Trigger Categories and First Responders
| Trigger | First Responder | Escalate to Josh When |
|---|---|---|
| Unpaid invoice (30+ days) | the Operations Manager (collections) | Invoice exceeds $1,000 or 90+ days |
| Customer threatening lawsuit | Office | Immediately |
| Property damage claim | Office + Josh | Any dollar amount |
| Employee injury claim | Josh + workers comp carrier | Immediately |
| POA / authorization dispute | Office | Anytime POA documentation is unclear |
| Harassment or discrimination claim | Josh | Immediately |
| Contract dispute with subcontractor | Josh + the Production Concierge | Immediately |
## Unpaid Invoice Escalation
From Slack: For invoices unpaid after 90+ days, the process involves:
1. Contact the customer directly to request payment
2. Inform them of potential legal action (mechanic's lien on property)
3. Escalate to Spartan's attorney for lien filing or collections action
A mechanic's lien is a powerful tool for plumbing contractors in Ohio — it attaches to the property and must be resolved before sale. Do not threaten a lien without intent to follow through. ## Property Damage — Customer Disputes
1. Do not admit liability without Josh's review. 2. Document everything: photos, ServiceTitan job record, all communications. 3. Notify the GL insurance carrier within 24 hours of the claim. 4. If the customer files a complaint with a state licensing board, notify Josh immediately. ## Power of Attorney (POA) Situations
From Slack: Proof of POA is required before performing any work for a client acting on behalf of another person. Without documented POA authorization, Spartan has no authorization to proceed — proceeding without it creates legal exposure. ## Employee Legal Issues
- All harassment, discrimination, or hostile workplace complaints go to Josh immediately — do not investigate at the manager level. - Workers comp disputes are handled through the workers comp carrier — do not negotiate independently. - If a current or former employee threatens legal action regarding pay, classification, or wrongful termination: notify Josh and consult an employment attorney before responding. ## Recovering Company Property from Ex-Employees
From Slack: send a written notice giving the former employee 10 days to return company property (e. g. , uniforms, tools). If not returned: issue a bill, then pursue legal action coordinated with Spartan's attorney. ## Important Notes
- When in doubt, consult an attorney BEFORE responding. A wrong response to a legal threat can waive rights or create additional liability. - Document everything, always. Courts decide based on records, not recollections. - Spartan's attorney contact should be known to Josh and the Operations Manager. Keep it current. ## Related SOPs
- Billing & Accounting — collections for unpaid invoices
- On-the-Job Injury Response — workers comp trigger
- Anti-Harassment & Equal Opportunity — harassment complaint process
- Contractor & Subcontractor Agreements — subcontractor disputes