Have to Take Customer to Small Claims Court for $5,000 - Any Suggestions ?

by flipper 14 Replies latest jw friends

  • flipper
    flipper

    Well, it's actually $ 4,800 to be exact, but it might as well be $ 5,000 . So any of you had experience taking a customer to court before ? or have to take someone to small claims court ? Your comments and observations would be appreciated.

    I had this client ( architects office ) as one of my commercial janitorial customers for a year and a half. When the construction industry started going south they got a bit behind in their monthly payments to me . They claimed they had one million owed to them by contractors who refused to pay them . First a month behind , then when they got 2 months bhind they cleared up the first month. So I worked with them since June trying to get them caught up. But by mid-November they started falling not just 60 days behind but 90 days behind - that's when I said - enough is enough !

    So December 1st , I officially gave them a notice indicating I'd suspend services until they caught up the current debt. I gave them until December 15th. They didn't meet the deadline so I terminated them permanently , deciding to take them to small claims court. Interestingly, the accountant lady kept telling me to come in these last 2 weeks and see if they got any checks in - and she'd try to leave me my check. Never happened. But I noticed on her desk Dec. 10th another proposal from a janitorial company to clean their office - $ 150.00 less per month. So when I turned my keys into her on Dec. 16th I asked her , " What are you folks doing about a janitorial service ? " She said, " Oh, we just are emptying our own trashes . " I said, " You aren't looking to hire another janitorial service ? " she said, " No we aren't . " I said , " Well, I happened to notice on your desk a proposal from a rival company " She said, " That's none of your business. It's private information if it was sitting on my desk ! It doesn't concern you ! " I replied, " Well, yes, it does concern me because you are still under contract with me , and I never received a written termination notice indicating you wanted to end my service. You are in breach of contract not only for being 3 months behind , but for trying to hire another service while you are under contract with me . How do you expect to pay this new service, if you haven't paid me ? " She said, " Well, that's our business. " So I bid her a good day , and told her I'd see her later and that I'd have to pursue other solutions to this. The lady was definitely pissed off I caught her in a lie .

    So I've gotten my paper work together. My bank statements and their checks written to me indicating late payments . Also a copy of the contract indicating each party gives 30 days notice before termination. My court date is Feb. 2nd , 2009 in small claims court. So any of you gone through this with customers before ? How did it turn out for you ? Any suggestions for me ? My ears and eyes are all open here. Your takes are much appreciated. Look forward to hearing from you

  • nsrn
    nsrn

    Dear Flipper,

    I took a former tenant to small claims just 2 wk ago. It was a new experience for me. The courtroom was small (maybe 40 chairs in the congregation). The judge would call each case, the involved persons stood at their seat, and he asked the defendants if they disputed the claim. If so, he made a future date to hear arguments... If the defendant does not contest the claim, then the judge called the parties up to the bench and he helped mediate a payment plan. Some folks had an attorney present, so the judge called those cases first so the attorney's valuable time (and client's money) would not be wasted. There were people (defendants) literally in their pajamas and slippers there, but I dressed nice for my own confidence. Be on time, no children allowed in the room, and carry in as little as possible, as the courthouse security thinks it's an airport.

    I understood that if the defendant contests the claim, that in the next court date you would need to bring all documentation to support your position. I had all that with me for the first hearing, but since my former tenants did not dispute, I did not need to present these. He just approved the payment plan I suggested. Then tenants agreed. The monthly payment goes through the courts to me, so if they do not pay, they are in contempt of court.

    If the defendant doesn't show, but had been served notice personally of the hearing, then it is an automatic default. But I'm not sure how they enforce payment.

    don't know if this helps you any. I'm sure you have a lot more experience in business dealing than I have.

    Nancy

  • SnakesInTheTower
    SnakesInTheTower

    Mr. Flipper...

    Presuming that California (listed on your profile) is your state, here is a link for you: http://www.courtinfo.ca.gov/selfhelp/smallclaims/

    Snakes ()

  • OUTLAW
    OUTLAW

    Flipper.. So December 1st , I officially gave them a notice indicating I'd suspend services until they caught up the current debt. I gave them until December 15th. They didn't meet the deadline "So I Terminated Them Permanently" , deciding to take them to small claims court ......AND....."Well, yes, it does concern me because "You Are Still Under Contract With Me" , and I never received a written termination notice indicating you wanted to end my service. You are in breach of contract not only for being 3 months behind , but for trying to hire another service while you are under contract with me."............................Flipper,you have 2 conflicting statements here..They may owe you money,but you have no contract with them..You terminated it!.....I would keep trying to collect in a friendly manner,until the court date..You may not have to go to court.....If you do end up in court..You can`t go to the Judge with two conflicting statements..So..Get the language in which you intend to present your case,Straight..................Clint Eastwood...OUTLAW

  • SnakesInTheTower
    SnakesInTheTower

    hey...

    I just thought about this...

    ....you could offer to do one more buff and shine job for them...... and leave really really dark swirly marks on their tile....or melt those suckers down to concrete... esp if you have a propane buffer..those things will make puddles out of tile in no time... (not that I ever personally did that...lol)

    Snakes ()

  • musky
    musky

    I have not had experience with small claims, But I believe the loser pays court fees. Maybe if you told your customer that you were taking them to small claims, then they would pay. Also, could you call the company that they are getting the bid on and explain your situation? They may be interested in knowing?

  • Homerovah the Almighty
    Homerovah the Almighty

    Hi Flipper, just to set things straight , you have a signed legal contract with this company stating the particulars of non-payment and so forth

    and was there a length of time for this agreement ?

  • jamiebowers
    jamiebowers

    When my dad had his own plumbin business, I filed paper for him in small claims court against a real estate development firm. They paid up as soon as they were notified of a court date. I hope the same happens fo you.

  • SnakesInTheTower
    SnakesInTheTower

    Here is my commercial collections story.... maybe it will provide ideas (or at least a laugh)...

    I once worked for a roofing inspection and design company as a PT bookeeper/receptionist/lackey. When I got there the books were a mess. I found over $50K in outstanding recievables. About $30K was actually just accounting errors (things not recorded)..but another $20K was legit... including about $8500 receivable owed by one real estate developer (I wont say who it is, but the owner is married to a "wallyworld" heiress..lol) that had contracted 2.5 years early for inspections of various properties... a mere few hundred bucks on each. I called their accounts payable department about it and they said..."that seems kinda old....if you can even prove we owe it." I faxed the proof of contracts (multiple properties, fortunately individual contracts) and said "now you prove you paid us." I got no call backs after a couple of weeks.

    I called them on a Tuesday and said: "I know you all can afford to pay this. I know who your owner is married to. If I dont have a check for the full amount by Friday, I will file liens against each property separately and small claims against each property separately next Monday in *** County Court." I got a call back from their A/P (accounts payable) person the next day ..they cried uncle and said .."for a payment this large, we need 2 signatures and the principles are out of state until next week." I told them: "You have had 2.5 years to pay...this is why god created FedEx envelopes.... Friday noon...or small claims court Monday.." I hung up on them. {click}. Friday morning, I get a call..they are going to mail a check for the balance... I said... "ummm...no... I think the check has been 'in the mail' for 2.5 years.....how about I show up at your office and pick that up?" I drove through rush hour traffic and when I got there..I heard over the PA.... "Mr. {Snakes} is here for the pickup." They got me in and out like I had the plague...LOL

    Meanwhile, my boss had just got back in town, our company is financially in trouble.....he was pissed that I wasnt in the office working on his reports. Instead, I had prepared payroll and put the checks on his desk....mine on top. When I got back, he said, "I dont know if we can do this now...the account is almost empty...."

    I laid the check for $8500 on top of the paychecks...and said... "hmmm.....you damn well better sign my paycheck...and buy me a new printer why you are at it....the one I am using sucks." (he did on both counts)

    The look of shock on my boss' face was precious... he never expected to collect that big account... he was afraid of their lawyers. I told him I eat lawyers for lunch. edited to add...of course "eating lawyers for lunch" is hyperbole..i did tell him that...I am not afraid of lawyers...but he really was afraid of their lawyers..he had told me to leave it alone..i ignored him..i needed to get paid... They just have a fancier piece of paper than me. I only have to be a tiny bit smarter than them... hell...that check was pocket change for that guy. The paperwork probably did get lost...on our end ....long before I got there the company had a fool for a bookeeper...excellent at solitaire.... lousy at doing her job.

    Point is...and there really was one to this story..... you just have to be a tiny bit smarter than them. Good luck collecting that account Mr. Flipper...

    Snakes ()

  • jaguarbass
    jaguarbass

    When I first started my work life I had a roofing business back in Cleveland.

    I ran into a dead beat family who stiffed me.

    I took them to small claims court.

    I didnt really have a signed contract this was like 1972, I had a work order with the price on it.

    The judge gave me the judgement. No problem or hesitation.

    I spent a week putting the roof on and they had the roof, I guess that was contract enough.

    Once I got the judgement. I got my first suprise.

    I still had to collect.

    The judgement gave me a right to file a lean on the house which cost money.

    And then I had to wait until they sold their house which may not have been in my life time.

    Or I could spend even more money and foreclose. I was just starting out my working life and I didnt have money for that.

    So having read your post reminds me that somewhere back in Cleveland I have a lean on a house owned by J. Alle on Ira ave. in Brooklyn, Cleveland.

    I wonder if the courts tried to find me by posting those little adds in the classified section.

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