Legal Question in Business Law in California

In December of 2007, I took out a line of credit from Wells Fargo for my former employer because he was having cashflow problem with the business. I worked for him until December 2008 and I have been trying to get him to pay off the loan. We did not sign any agreement because it was only a verbal agreement. But I do have all the statements from the bank and also all the emails that states he would pay back.

The total amount is $5,000 plus all interest and fees. I searched for the company in the california state website that stated the company is Suspended, How can I get my money back from my former employer? He is not answering any emails. I also want to add that we recently settled a worker's compensation case. I believe this is why he doesn't want to pay me back. What are the chances in small claims court in california?

Thanks for all the help and advice


Asked on 10/07/09, 8:47 pm

1 Answer from Attorneys

This is a classic case for small claims. An oral agreement is enforceable and it seems you have evidence to back it up. So it's not just a battle of your word against the employer. Furthermore, even without a contract, there is an ancient common law cause of action called "indebitatus assumpsit," now known as a "Common Count for Money Had and Received," that allows a person who gives another money with the mutual expectation that it will be repaid, the legal right to get the money back without any formal agreement, written or oral. Both an oral contract and common counts must be sued on within two years, however, so you need to get something done right away.

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Answered on 10/07/09, 9:14 pm


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