Legal Question in Business Law in California

Unpaid invoices

Customer received materials ordered by contractor from us--name removed--materials were drop-shipped by vendor who neglected to receive payment--name removed--COD order--name removed-- since then--name removed--customer has sold business to another operator--name removed--we are attempting to recover payment through Small Claims Court since no preliminary lien notice was ever sent--name removed-- Amount is approx--name removed--$5,000 including--name removed--late charges--name removed-- Contractor will be subpeoned as a witness for us--name removed--plaintiffs--name removed----name removed--Will new owner be responsible for this debt since he is enjoying the materials--name removed-- If and when we do receive a judgment--name removed--we would like to--name removed--tap the till--name removed--since this customer is a retail business--name removed-- Please advise.


Asked on 9/11/00, 1:54 pm

1 Answer from Attorneys
Ira Harris Law Offices of Ira James Harris

Unpaid Invoices

It depends on whether or not the new owner acquired the assets and liabilities of the old buisness. If he/she is running it under the same name, it is likely that they did. If they acquired the liabilities, then they have assumed the liabilities of the old company.

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Answered on 12/31/69, 7:00 pm


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