Legal Question in Credit and Debt Law in Alabama

non payment of services

I would like to know if: I sell a client space in a magazine , and they do not pay , and the company I work for then charges me back 3% of the total order, can I sue the non-paying client in small claims court for the charge back fee +lost commisions? EX: xxcompany places 4 ads totaling $16,000 dollars , they do not pay, my company then writes the amounts off the books and charges me a 3% fee and I receive no commisions (normally 6%) can I sue xx company in small claims for 3%of 16,000($480) and 6% of 16,000($960)? , And what would be my chances of success?


Asked on 7/29/03, 5:17 pm

1 Answer from Attorneys
Robert Kreitlein Robert Kreitlein, Attorney at Law

Re: non payment of services

The "charge-back" is a common practice in sales and dealer arrangements and I have handled many cases involving losses related to charge-backs. The question I would have is: is the company you work for not attempting collection of these amounts? These sound like large-dollar accounts and the proper plaintiff in this action would be the company. Any contract signed by your customer is going to be between them and your company. What sort of relationship do you have with your company? Are you considered an employee? Or a contract sales-person? I would need to know more details before being able to tell you definitively yes or no.

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Answered on 7/29/03, 5:55 pm


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