Legal Question in Business Law in California
Payment for services rendered
I live in washington state but work as an independent contractor for a company based in San Francisco California.
I use the internet to both interact with clients and to correspond with the company in california.
I have a contract with them which specifies the manner of their payment for my services.
I have worked with them for the past 10 months with no problem untill now. I submitted the invoice for June as specified by them, but have recieved no payment. They do not answer my inquiries by telephone or e-mail.
Noramlly, I recieve payment via regular post within 3 days of their recipt of my invoice. I recieved confirmation that they recieved my invoice back on July 2, 2002.
My question is, what recourse do I have for collecting payment, since I live in another state?
Total invoiced request for June payment is $1487.00. There is approximately $600.00 in July which I have not yet invoiced for.
4 Answers from Attorneys
Re: Payment for services rendered
This is an ordinary slow-pay/no-pay collection matter, and a lot will depend upon the reason for non-payment. The facts you give suggest the company is in financial difficulties. If they merely had a beef with your services or billing, they'd be more likely to discuss it with you.
At this stage, I would try to find out about their financial situation. Maybe there is another person at the company, or another supplier, who would give you some information, or comb the Web for news about them.
If they're broke and about to file bankruptcy, it won't be worth bringing suit in California small claims court, but otherwise this is what you should consider. Obtain a book on California small claims procedure somehow, and handle as much as possible by mail. At trial, you would have to appear personally.
Re: Payment for services rendered
While you may have grounds to file a small claims suit in your state, the judgment would be difficult to collect if the company has no assets in Washington. Thus, you're better off trying to collect in California.
Re: Payment for services rendered
Send your 2nd invoice. 2-3 days thereafter, send them a letter requesting payment. Let them know that you will be filing suit if payment is not recieved in 5 business day. If payment is not received, file a suit in small claims court. You will need to have the registered agent for the company served with process. The court clerk can walk you through this process. Then you get to try to collect...
Re: Payment for services rendered
Unless the contract says otherwise, you should be able to take legal action in your local courts, provided that the company knew where you were based when it entered into the contract.
However, it has barely been two weeks since you submitted your invoice. The fact that they have paid more quickly in the past does not, by itself, obligate them to pay as quickly now. Maybe you should be a bit more patient with them before contemplating legal action.
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