Legal Question in Disability Law in California
relative owes me 20,0000 but refuse to pay we have no written agreement all i have are two cancel checks.
thanks
vince
2 Answers from Attorneys
Sue them. An agreement is an agreement unless it was for an agreement regarding marriage, to be completed in more than one year, land, executor, guarantor, or sale of goods $500.
The problem is proving it if it was not in writing. Probably have to have a trial on the factual issue.
If there was an agreement to repay the money, then the agreement can be enforced by filing a lawsuit against your relative. However, you risk a couple of things. First, the relative will probably argue that it was not a loan, but was instead a gift.
If a gift the court will not make them repay it. If the money was a loan, then the court will likely find in your favor. There is also the potential problem of what affect filing a lawsuit will have on your other family members.
Depending on when the loan was made you may have an issue regarding the "statute of limitations". This statute requires that you file a lawsuit within a certain amount of time. For an agreement not in writing the time is generally two years from the date that payment was supposed to be made but was not, i.e., date of breach of the agreement.
If the money was made all in the same year you may have potential tax liability for making a gift in excess of the annual exemption amount.
Finally, even if you get a judgment, the question arises as to whether the relative has the money to pay you back.
J. Caleb Donner
DONNER & DONNER
LEGAL WARRRIORS�
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