Legal Question in Business Law in California

I had a business contract that has not been upheld and want to know my legal options.

I formed an S-Corp last year for my baking business in California to get my products distributed into grocery stores. I signed an agreement with a packaging and distribution company paying $3000 to have 3 products, packaged and distributed. The company is A la Carte, run by one man who outsources to specific people he works with for each part of the process such as manufactures and packaging etc. Things were going well until January. I got the run around about why the product packaging wasn't finished for almost two months and now I cannot get a hold of this man. The last communication I had from him was Feb. 24, 2014 Despite calling. This man has not responded and has basically disappeared. What are my legal options? Do I contact this person a last time to say I'm proceeding legally?


Asked on 5/22/14, 8:44 pm

2 Answers from Attorneys
Charles Perry Law Offices of Charles R. Perry

It is not absolutely necessary for you to contact him again for this purpose.

It seems like you will need to retain a lawyer to help you, if only to let the distributor know you are serious. It may be that a letter from a lawyer will have enough muscle to resolve the problem. If not, the lawyer can advise you of your options, and help you decide what option to follow.

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Answered on 5/23/14, 3:05 am
Frank Natoli Natoli-Legal, LLC

IF the amount in controversy here is no more than 5K, which appears to be the case and the defendant is also a CA resident, your best bet is to file a small claims court action against him. You will not need a lawyer to do this.

If the defendant is not in CA, check with the court and see if the out of state D can still be brought to SCC but I doubt that. This means you will likely have to sue where he is in SCC or you can sue in the CA state court, but will likely require an attorney.

Alternatively, you can hire a lawyer to conduct a case/matter analysis and issue a demand on him. This may work well or not at all and obviously you need to pay that lawyer as well.

I suggest that you consult with a lawyer in private and discuss your objectives in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with.

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

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Answered on 5/23/14, 5:25 am


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