Legal Question in Business Law in California

Collecting debt for services and programming work

My husband and I have owned our hosting company for a little over 7 years. Three years ago we agreed to host websites for a website designer for a discount. The only thing we did differently with his accounts was he would pay for services already used instead of future services. My husband also did programming for some sites he was making. He has paid us in full for the past three years for all work done. This June when his account was due, he made a partial payment and then started to move his accounts to a new server. Once he was 3 weeks past due I turned off his accounts, (my TOS on my website says 10 days). I have tried contacting him several times, the last phone conversation we had he was trying to dispute the programming work when he verbally told my husband and I that the work was complete, he said the hosting prices were now too high (they haven't changed since the beginning) and he told me that he has NO intention of paying anything. My question, can I sue him for the debt owed? Can I sue for attorney and court fees if it is in my TOS on my website?


Asked on 8/01/05, 11:52 pm

3 Answers from Attorneys

Terry A. Nelson Nelson & Lawless

Re: Collecting debt for services and programming work

If he owes you money, you can sue. If the contract has a provision for attorney fees, then you can claim them if you use an attorney to sue. If there is a large enough debt to justify hiring an attorney, then contact me if interested in doing so.

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Answered on 8/02/05, 1:20 pm
Christopher M. Brainard, Esq. C. M. Brainard & Associates - (310) 266-4115

Re: Collecting debt for services and programming work

Maybe if you have clear assent to those terms. If they are just boilerplate, it may be a problem. If the case is for a medium to large dollar amount, give me a call.

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Answered on 8/02/05, 2:39 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Collecting debt for services and programming work

The basic answer is yes, of course, you can sue for breach of contract and perhaps other causes of action.

A fundamental question is whether the suit should be in Small Claims Court (max. $5000 plus costs) or in regular (Superior) court. You didn't provide enough information for me to advise on that score. Small Claims has definite advantages in terms of economy and speed if the claim fits within the limits. A larger claim can be voluntarily limited to fit within Small Claims jurisdictional limitations.

A significant economic issue in where and whether to sue is recoverability of attorney fees. In contract cases, attorney fees can be recovered by the prevailing party IF the contract contains an attorney-fee provision; otherwise, generally not.

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Answered on 8/02/05, 12:15 am


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