Legal Question in Business Law in California

We have a small trucking company. We haul for various brokers or trucking companies who can't cover all the loads they have and we deliver all over the US. Most companies state they will pay the invoice we submit in 30 days. Many of them are going over the 30 days. Can we charge a late fee? If yes, is there a set amount or limit? Can it be a percentage of the invoiced amount? If they take longer - 60, 90 days - can we charge a percentage of the new total? Is it notice enough to state the late charge fee on the invoice or do we have to sent out notices of out intent?


Asked on 4/29/10, 6:44 pm

2 Answers from Attorneys

Laws vary from state to state on this, and there may be ICC regulations on it, which I'm afraid I can't look up for you to answer a free question. In general, however, late fees are common and legal, and a percentage of the invoice is also common and legal in most jurisdictions. Most jurisdictions, however, prohibit charging interest or a percentage late fee on previous late fees.

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Answered on 5/05/10, 9:20 am
Bryan Becker Becker Attorneys

The key going forward will be to ensure your contracts clearly state the late fee policy. This may also be a good time to look at the contract as a whole. For example, does it include an attorney fee provision? As for those who are currently late, I suggest a series of demand letters reminding them of their payment obligations and setting a deadline for payment.

Regards,

Bryan Becker

Becker Attorneys

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Answered on 5/05/10, 10:43 am


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