Legal Question in Business Law in California

Re: Cust. received manicure service, then cancel her check when she got home

1. File in small claims for damages.

2. Contact the District Attorney, bad check division.

3. Change your store policy - post a sign that says something like "A $25 charge will be added to all canceled and voided payments".

If you would like additional information, or assistance in a other aspects of your business (such as employment contracts, anti-competition agreements, etc.) please feel free to contact me at my office directly at 626-578-0708, extension 4 or through my web site at www.RulesofEmployment.com

Scott

Re: Cust. received manicure service, then cancel her check when she got home

It is against the law to cancel a check or to place a stop payment order on any draft over a dispute. The only way a customer can dispute service is by going to court, in this case, small claims court. You can turn this person over to the district attorney for your county to prosecute. Here in LA County, the DA has their own special division just for this. You may be allowed statutory damages up to three times ( I have to check the code but I believe it is 3 time)the value of the check plus fees. But since three times the value is still less than the value of your time, you should probably let the DA get the money.

But, it is sounds like you are out to prove a point, so maybe small claims is the answer. But do watch out in small claims, you rarely get damages in small claims. Only for really bad cases, and unless the client shows with a really bad attitude, do not expect very much for your time.

Re: Cust. received manicure service, then cancel her check when she got home

This is a situation where you may have to bite the bullet. You can report this person to the DA since canceling a check is a crime. However, you must think through the weights and balances in order to measure the worth of your time.

This battle can be fought in small claims court, but you must keep in mind the following:

1. Plaintiffs cannot appeal. If you lose the case is over since the plaintiff agrees to waive their right to appeal. This is an economic device to help keep the cases moving through the court system.

2. Plaintiffs must prove their case by a preponderance of the evidence in order to win.

3. Some judges do not like to split the baby if it's a 50/50 battle. Instead, they'll give the defendant the benefit of the doubt.

In sum, there are three prejudices against the plaintiff in a small claims action before the matter is even heard.

And last, I do not feel your time weighted against the above disadvantages will be worth it. Therefore, your best bet would be to contact the DA and/or bite the bullet and move on.

Re: Cust. received manicure service, then cancel her check when she got home

If I were you I would get a sign that says, "No Checks Accepted."