Legal Question in Business Law in California

Stop Payment on Check

I received a check on a Saturday night from a woman whose company was an LLC in the amount of 3,000.00 for sound, lighting and video production prior to a concert at a club. She said she would cash it out at the end of the night. She did not have enough money at the end of the night and said she would cash it out on Monday when cash came in from her ticket outlets. By Wednesday she said it was not her responsinbility to cash it out and when i went to my bank to cash it they said, first, she did not have any money in her account and second, she had put a stop payment on the check the same Saturday night the check was given to us.

Later that week she filed a law suit against me in small calims court for non performance of services asking not only for the $ 3000.00 back that we never got but an additional $ 2,000.00 in damages. I immediately won in court but did not countersue because I had immediately turned her check over to the Bad Check Enforcement Unit in my city. They are now telling me, three months later, that they can not go after someone protected by an LLC. In court I already proved that this woman has commited fraud and proved that she had no money in her account when I supeonaed her bank account for my case.


Asked on 1/23/08, 5:14 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Stop Payment on Check

The bad check enforcement people should be going after the LLC, which is a legal person, not the natural person who affixed her signature. Well, actually, I think BOTH the LLC and the human signatory are responsible to you. I think this calls for a second small-claims suit, this one by you, naming both the LLC and the person and asking money damages for dishonor of the check. Your previous case does not seem to be a bar to the new suit because the issues are sufficiently different that, at least in Small Claims, the counterclaim was not mandatory nor were the issues already decided.

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Answered on 1/23/08, 8:45 pm


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