Legal Question in Business Law in California

Re: Out of State Collection of a Bill

I agree with the prior answer.

However, once it becomes clear that they will not voluntarily pay you, you do have additional options.

I recommend that if the amount involved is over $7,500.00 you refer the matter to a collection agency or collection attorney for collection.

If that is not successful, a lawsuit may be the only way to recover. There are different options: your collection lawyer can sue here in California, and then have counsel in the other state enter the California judgment. Alternatively, you can have suit filed in the other state. The downside to this option is the possibility that you might have to travel to that state for discovery and/or trial.

Research fully what you want to do before hiring collection agencies or collection attorneys.

Hiring profession collection counsel or a collection agency is never guaranteed, but can often be the best chance of recovery. However, keep in mind that if you have a collection agency proceed with collection and they are unsuccessful, they will have to hire a collection lawyer to file suit. Therefore, it may be in your best interest to skip the middleman and retain a collection lawyer yourself.

Re: Out of State Collection of a Bill

If the bill is over $ 10K then you can have federal court jurisdiction, Otherwise gaining jurisdiction over them in California may be difficult. Contact me direclty.

Re: Out of State Collection of a Bill

There is not much to add after the other attorneys have answered, however I would note that this matter may be solved quickly and affordably with a well written demand letter to the out of state company by a local lawyer. This would help bring their attention to the matter and help them to better appreciate your intention is to be paid. Our office prepares this type of letter routinely. We are located in downtown San Diego. Contact me to discuss at your convenience. 877*201*8728 or [email protected]

-Bryan Becker

Re: Out of State Collection of a Bill

Do have a written contract? If so, its terms may dictate where and how to seek relief. If you don't have a contract -- or if you do but it has no such provisions -- you should be able to sue the company here in California.

If the amount in dispute is $7,500 or less, you can sue in small claims court and take advantage of its simplified procedures. Even if the amount is somewhat more than $7,500, it may be wise to waive the additional charges and bring a small claims action in order to save money on attorney fees (parties are not allowed to hire attorneys in small claims court) and avoid most of the hassles of litigation.

Having said all this, I note that four weeks is not a very long time to wait for payment. You should probably just give them a bit more time unless you think the company is about to file for bankruptcy or take other steps in order to get around its obligation to you. A little patience is likely to yield a better result than is going to court.