I have a problem, customer X owes me XXXX amount of money and he wont pay me back. He is past due on his terms it was a 45 day term, and he turned it into a 120 day term as of now well more. He has made small payments few thousand here, few hundred here. His payment schedule isnt realiable. A month will go without payment. He isnt paying interest on the merchandise that most of it has already been sold. We dont want to use a debt collector because they will take a 25% cut and it wont be resolved asap. Any advice? He does about 8K in sales a day and claims he has no money to pay me.

thanks

 

Did you have him sign some type of working agreement for you two to do business in the first place? If so that could really be beneficial.
Send him a certified letter giving him a certain amount of time (20/30 days) to pay the remaining balance off and if not he will be charged the surcharge that a collections agency will charge to collect his 120 day past due account.
If you know he will pay you should really send him some type of payment plan. Something in writing to show that he is breaching the agreement.
Is his business worth all these problems? Sometimes it is. You have to acknowledge that some people work that way, they will pay in their own sweet time. Thats the bad part of business. At least he his attempting to make payments... Too bad it's taking so long.

Good luck

 

call up Guido.

 

What are the jurisdictional limitations of the Small Claims Court where you live? My thought is that if your claim against him does not exceed the amount that could be awarded in a small claims action, file it yourself.

 

sorry, if i did that i would get arrested for assault!
then not only i will be in jail, i would be still out my $$$$$

 

[QUOTE]Originally posted by altamoreaf
[B]What are the jurisdictional limitations of the Small Claims Court where you live?

 

[QUOTE]Originally posted by EVAN_In_A_SPA
[B]Did you have him sign some type of working agreement for you two to do business in the first place?

 

Another thought. I don't know what other lawyers might think of this but it might put a lot of pressure on him to pay you. You could threaten to publicize the fact that the guy/business is a piker. (Industry publications, your local paper, etc. He has had the benefit of selling your stuff and yet he has not passed on to you what you have earned. If I recall, if you don't have a written contract, in general, your relationship has created a legally enforceable contract, and its terms are for payment within a reasonable time, consistent with industry practice. If all you say is true, then he couldn't sue you for defamation. A reputation often is worth making prompt payment. Of course, you'd never do business with him again, but that could be a good thing.

Marc

 

uh I wouldn't do that, seems like you are opening yourself up to liability marclw

I don't think this is a good forum to provide or seek legal advice, and my opinion is just a personal opinion. My thoughts are if the guy has provable assets, you have made clear attempts of collecting and he has not been forthcoming, and it's a significant amount, I would consider it taking to trial if just to get a list of his assets and put pressure on him. You might be able to settle it without the need for the case, and you'll have the writ that you can use to have law enforcement seize assets for you or sell the judgement to a collection agency. But if you point out the court costs, possible damages (even trebble if he has been attempted to collect on and keeps ignoring), and the owed amount, he might see it's in his favor to settle for less than the 25% cut collections would take.
Sounds like a sales of goods contract? or is it a split contract?
more information would be useful, but I'm presuming there is a signed contract and it's a valid contract.

I think someone else said it, but I would have an attorney draft a letter indicating payment is expected and see if that gets his attention first.

 

Some facts which would have a bearing:


Is the debtor also in CA or is he in another state?

Where was the "contract" made - for jurisdiction purposes?

Have any documentation that will demonstrate the sales and payments?

Does your course of business w/ him show what the payment terms were of the "contract"?

Will the state in which you might sue (either CA, where you are, or some other state, where he might be) allow attorney fees? Some states (relatively few) do allow fees. That would put an entirely different light on the feasibility of bring suit.

Obviously, as was previously posted, the contract might be silent as to payment terms, but it would be viewed as requiring payment w/in a "reasonable" time.

If your documentation is sufficient, you probably would never reach trial, but would prevail in a motion for summary judgment.

Once you get the judgment, actually collecting on it might be a totally different matter.

Good luck to you.