Legal Question in Business Law in California

My company entered into a contract with a company on the east coast. The contract did not specify the form of payment, but the company always requested us to use their paypal account. We fell behind in monthly payments for awhile, then caught up and made a lump sump payment of all past due amounts into their paypal account. The company is now suing us for the fees that paypal takes out of their account, claiming that they have not been fully paid. They are asking us to pay these amounts, past due interest, and their attorney's fees. Didn't they accept paypal fees when they asked us to make payments through their paypal account? Can they legally object to this now?


Asked on 10/14/12, 12:02 pm

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

First thing that comes to mind is whether you have anything in writing, even an e-mail, containing their request to be paid via PayPal. Second thing is the amount of PayPal's fees does not seem likely to be large enough to warrant an interstate lawsuit. I also would need some information about the lawsuit itself to be of much assistance. Have you been served with the lawsuit? In what court, state or Federal? At what location, in California or on the East Coast? If you have been served, you need to put up a defense or face a judgment by default against you. You probably should have a consultation with an attorney as soon as practical.

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Answered on 10/14/12, 12:22 pm


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