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14 Replies Last post: Nov 19, 2007 12:26 PM by marktingcoach

Small Claims Judgement In Our Favor and Still No Payment

Dec 7, 2008 2:20 PM

Click to view SOHOguru's profile Mogul SOHOguru 22 posts since
Dec 6, 2008
Thank God that we have dealt with people that have good business ethics over the years.....for the most part.

My company performed web work for a client that was very uncooperative. They did not provide material on time and after months of dragging out a contract that was then in breach because it had gone past our Scope of Work due to their inactivity, I simply closed the book on work until a new contract was negotiated and we were paid for the original contract. 6 months of missing material from them to work on, and the client called several times a week wanting other work not contracted for - well, it was just a really bad situation and quite frankly, I personally was relieved that I just turned my head concerning the $2500.00 still owed to us just to have this guy OUT of our lives! Yes - he was THAT miserable.

Much to my surprise, when I was about to open our door and send my young children off to school, the Sheriff knocked on my door and served papers on me in front of my tenderly young children. This guy had the nerve to file small claims against me for $400.00.

I am extremely meticulous when it comes to documenting work, so I counter-sued for the amount he owed us and marched into our court date with 180 pages of documenation, emails, timelines, correspondence with my programmers including access to my computer hard drive records for timestamp verification and validation of documents. He had 2 pages written out.

Needless to say, we won the counter-suit.

It is going on 2 years and he still has not paid the judgement. Does anyone have any nuggets of wisdom or experience in cases where you've won a judgement and the other party still refuses to pay? Of course, I always get referred to "talking to a lawyer", but that would just mean that the judgement would go to the lawyer instead of US ;-) <<<grin>>>

I've looked into the services that "buy" judgements for .50 cents on the dollar, but the ones I've found so far have a minimum of $5000.00 which discounts our collectible.

This whole incident just happened to cross my mind - I'm not terribly bent out of shape over it. I had written this guy off a long time ago even before the whole small claims insult and never expected to get the money due from our contract anyway. He didn't know exactly who he was dealing with though when he tried to pull the small claims against me!

Just thought I'd throw this out here in case anyone else is going to contract problems, experiences with clients and small claims judgement collection options.

Cheers!
Karen
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Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
1. Re: Small Claims Judgement In Our Favor and Still No Payment Dec 7, 2008 3:18 PM
in response to: SOHOguru
Every state has a different process, but most involve a judge ruling that one party owes the other money and/or property, and the issuance of an court order that the "loser" settle up with the "winner." If the loser doesn't, the winner has to take the next action -- which generally involves renewing the judgment in some way. This not only sets the stage for law enforcement to act on the winner's behalf, but in many states it allows a fairly sizable amount of interest to start accruing DAILY on the unpaid settlement.

Your profile says you're in NC -- here is a law firm's website explanation of the process there (scroll down to "OK, you won, but now what?"):

http://www.rmlawgroup.com/smallclaims/index.htm

Hope that helps. Good luck.
Click to view SOHOguru's profile Mogul SOHOguru 22 posts since
Dec 6, 2008
2. Re: Small Claims Judgement In Our Favor and Still No Payment Dec 7, 2008 4:08 PM
in response to: Lighthouse24

Thanks Lighthouse24. The small claims was filed and won in South Carolina and the "collection" circumstances are similar. In retrospect, I think I was just pondering where we are at with the situation and curious if anyone else has dealt with similar situations.
Click to view DSTREET1's profile Mogul DSTREET1 11 posts since
Dec 15, 2008
3. Re: Small Claims Judgement In Our Favor and Still No Payment Dec 15, 2008 6:14 PM
in response to: SOHOguru
This should be very helpful to you. www.smallbiztoolbox.info and click on " Watch Movie" link on the lower left side.

Good Luck.
For more info,
eyeteambenefits@yahoo.com

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