How would you react?

I would call mom first.
Just causually mention that you plan on reporting it stolen in another hour or so.

Mom was way out of line and is so no respect for you or your husband.
 
I'm in the same boat. My cousin got out of the pen several months back, & is trying hard to make it "back into society." He has been a carpenter & contractor all of his life. He's struggling to get business going & my tools are needed to get him there. He returns them a month or so later when I tell him I need them, hence, to borrow them again & again. So far I've only got a few things that were never returned. Hopefully, someday he'll be back to "normal"
 
I have WHAT in my yard? :

And I am furious at her for hurting my husband.......... She had a key and the tractor was missing this morning.

I think you've got to put your foot down and file a report that it is missing, especially if the title is in your name.

You have too much to lose. If something happens and you haven't filed it as missing, you are the one that will have to pay. Not your MIL or the person she (without permission) "lent" it to.

What a horrible predicament she put you in. I'm so sorry.
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Yup she just told the guy to take it. It is back now and nothing happened to it, but the damage to their relationship will be profound. I am so sorry for them both, because I don't think she knows what she did was wrong, but MIL was waaaay out of line. I have my own opinions as to how I would handle it, but truly this is his battle and he must handle it as he sees fit.
 
from now on i would have a contract of some sort that if this guy needs to 'borrow' any equipment that he has to come to you and have you/dh perform said service with the equipment or be there as a supervisor. or he has to sign a contract that he is borrowing 'at his own expense' equipment belonging to another and any damage will be paid for by him and your family will not be held responsible.
 
Keeping in mind that we must have the same sort of MIL and I have learned that hints don't work. I also don't ever want to put my husband in the middle of my issues with TOB (The Old Bat). He has enough of his own.

So WWID? I would be on her so fast she would think someone used a propane torch on her. Take her key & let her know she is unwelcome to loan out anything I owned. The time for honoring your husbands mother is for a family holiday in this case. This is business and YOUR liability at risk.

But that's just me.
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