Legal Question in Business Law in California
Non Paying Customer
Owners of ''moving assistance'' company.Quoted customer price and moved.Storage facility was closed,storage facility confirms telling customer about closier.It was closed so we stored property/went back next day to unload.At end of move customer paid workers via check, tried to cash check,would not clear.Contacted customer who stated he was dissatisfied with move and was not quoted the amount he had to payso was not paying.At no point during move, during storage or at time of payment was dissatisfaction expressed.Lowered price to resolve matter/to satisfy customer.After discussions decided to meet at bank for payoff of agreed amount,he wanted original rubber check and would give me new one.Stated after new check for agreed amount cleared I would then give back old one,he could walk into bank with me,or better yet get cashiers check and do a simple exchange.When stated I wanted either cashiers check or for him to wait for new one to clear,he backed out.This person never had any intent of paying any amount.Can I take to small claims without being a licensed business.Was told I should write a letter giving 30days to pay and should ask for three times the amount of the billed amount since he wrote a bad check.Any suggestions?
3 Answers from Attorneys
Re: Non Paying Customer
You need to sue, under $5,000 is small claims. There are damages per law for the bounced check also.
Joel Selik
www.4thelaw.com
Re: Non Paying Customer
You've tried to work something out, so sue him in small claims court. You still may have some trouble collecting, but a judgment gives you much greater power for getting the money out of him and puts you ahead of creditors suing after you.
Re: Non Paying Customer
One more piece of advice. Figure out what licenses you need for your business and get them. Then you won't have to worry about whether you have standing to sue or lack of license can be raised as a defense.
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