Legal Question in Technology Law in California
Non-Payment for services rendered
I own a web hosting company located in California. I have a large client located in Boston that has not paid for services rendered for several months, every attempt to get collect what they owe I am given promises that payment is on the way. After several months of negotiations to get their balance paid, I turned their site off until the balance was paid in full. Now the client is non-responsive to any attempts to any communications to resolve the eleven thousand dollar balance. What avenues can I take? Are the investors that own shares liable for any of this? How do I proceed?
3 Answers from Attorneys
Re: Non-Payment for services rendered
you must file a lawsuit for breach of contract against the company, not the investors.
Re: Non-Payment for services rendered
You need to weigh whether it is worthwhile to file suit against an out-of-state company that may not have the ability to satisfy judgment.
If your contract specifies that the prevailing party in a lawsuit will collect attorneys' fees then it may be worthwhile. Don't count on an easy win, though, because the defendant could have business insurance that would provide attorneys to defend the claim even if they don't have to pay you when you win.
If you want more information about what you are in for in litigation, please feel free to give me a call or send email.
Re: Non-Payment for services rendered
The only way that you can sue investors is if they signed a personal guarantee for you, or if they have not operated their corporation properly, based on their state corporation laws.
This won't be easy for you.
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