Legal Question in Business Law in California

The cap is $7,500.

There is the single action rule, which tends to say that you cannot split a single wrong into two causes of action. Since this apears to be two wrongs, you should be able to file two differnet lawsuits.

What you "know" is wrong. $7500 limit in small claims.

The cap is $7,500. You can't split your claim. Suit on any part bars a later suit on the balance. "We believe the fact situation before us is governed by the general rule against splitting a single cause of action. It is axiomatic that an entire claim cannot be divided and made the basis of several suits." (Lekse v. Municipal Court (1982) 138 Cal.App.3d. 188, 194.)

No court in its right mind would believe this was two separate lawsuits. You have to make the decision whether to waive the balance over $7,500, or file a limited civil action in the superior court for the full amount.

As others have noted, each separate small-claims case has a $7,500 limit and you can't split a claim into multiple pieces in order to get around that limit. Whether you have a single claim against this client or multiple claims will depend upon the facts of the case. You have not given us enough facts to answer one way or the other.

Well, the issue will turn on whether or not the transaction was a "single" transaction with seperate payment schedules or whether it was a divisible contract, with seperate "services rendered" and "payments made". So, this is one example of where you will want to select an attorney who will quickly review the facts and documents to give you a useful answer.

By Grace...

Shawn Jackson ESQ. (707) 584-4529

Business Development Attorney EMAIL: [email protected]

www.CaliforniaBusinessDevelopmentAttorneys.com

www.CaliforniaBusinessDevelopmentCenter.com

www.CaliforniaBusinessDevelopmentPlans.com

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You will almost certainly be better off asking for $7,500 in a single small-claims suit than asking for $10,000 in a single Superior Court suit, based on time required and costs you will incur.

As a Franchise Attorney I can only add the following, and it's a question. Do you have a written contract with your client and does it have an attorneys fee provision? If the answer to both is yes, then you are in a very strong negotiating position because your client is suddenly facing both the payment amount and attorneys fees - which will likely be a much greater amount. If not, then you need to develop a good contract asap. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

Just to complete the answer, your claim cannot be for more than $7,500 if you are a natural person. If you are filing on behalf of a business, the limit of your claim may not exceed $5,000. You may file as many claims as you wish for up to $2,500 in small claims court but are limited to 2 claims for up to $5,000 each calendar year.