Legal Question in Business Law in California

Re: Small Buisness Owed Money

I suggest a strong demand letter from an attorney. Sometimes a settlement without litigation can be reached. If no response, then a lawsuit should be filed. Please call me if you have any questions.

Re: Small Buisness Owed Money

Thirty-plus days delinquency is not nice, but it's not unusual, either. I suggest checking out the company's financial strength and payment history with Standard & Poor's or otherwise. There is a growing tendancy among 'high tech' companies to pay everything in 45 days even if the company is financially healthy.

Of course, the first thing to do is determine whether the company is asserting that it doesn't owe you, or is not paying promptly as a matter of policy, or because it is strapped for cash. Each of these "reasons" has a different appropriate response.

The dispute over the "unrelated" job may, nevertheless, be related to the reason or reasons why you aren't being paid for the first job.

In any event, I suggest you investigate and analyze before filing suit. When or if you do sue, consider Small Claims Court if the amount is under $7,500 or even if it is a little over. Also at 30 days late, an attorney letter is a bit premature. Phone calls requesting payment or the reason for non-payment would be more appropriate at this time unless you already know there is a dispute about your entitlement to the payment and that the company's position is legally unreasonable.