Legal Question in Credit and Debt Law in California

Re: How can I collect $21,000.00 from a client in California without extensive l

a corporation is not allowed to file a lawsuit unless it is represented by an attorney. an individual my represent himself but a corporation may not.

Re: How can I collect $21,000.00 from a client in California without extensive l

So, what Mr. Koury was saying is that if your company is a corporation, you will need to hire an attorney. If not, you could file "Pro Per".

You could file by fax, but there are a number of forms that need to be filed, and eventually you will need to make a trip out here.

Does your contract provide for payment of attorney fees in case of a breach? In that case, if you do need to file a lawsuit, you could recover your expenses.

At this point, you have a couple of choices. You could turn the matter over to a collection agency, who would retain a percentage of anything collected, while charging you nothing if they do not collect. This could be anywhere from 25-45%.

You could pay a few hundred dollars to have an attorney draft a strong demand letter on your behalf, threatening legal action if acceptable arrangements are not met.

The final option would be the lawsuit.

Let me know if I can help.

Re: How can I collect $21,000.00 from a client in California without extensive l

Because you are seeking more than $5,000, a small claims lawsuit (where you represent yourself) is not possible.

You need an attorney to write a demand letter for payment. If that does not work, you need to file a lawsuit in state court in the district where the California company is based.

I will be happy to speak further about this. You can see my bio at http://www.schinner.com/html/the_schinner_law_group_-_d__al.html

Re: How can I collect $21,000.00 from a client in California without extensive l

If you are a corporation, you have to hire a lawyer since California limit is $5000. I would be happy to provide you with free consultation if you fax me copies of your contract and invoice to 714 363 0229. This matter may be handled by a simple letter or phone call from an attorney.

Re: How can I collect $21,000.00 from a client in California without extensive l

You cannot file an action for a corporation without a lawyer in California. No, a corporation cannot appear in pro. per, as someone suggested. Even if you could, just imagine the need to appear at every and any motion filed by the other side. It could be very costly, and might become a tactic the debtor's attorney adopts to wear you down. Hiring an attorney may be provided for in your agreement with you debtor. If so, you will get an additional amount for "reasonable attorneys' fees," however, what judges and attorneys think are "reasonable attorneys' fees" varies greatly. You can retain counsel for less than hiring a collection agency. Your matter could be handled for a fee of one third if settled prior to filing an action, or forty per cent, once an action is filed. The increase being timed to additional work required.

The "reasonable attorneys' fee" will reduce the amount you will have to pay a lawyer upon collection. It will also move the case along much faster, if you have an attorney involved.

Re: How can I collect $21,000.00 from a client in California without extensive l

If the contract provides for it, and probably even if it does not require disputes to be filed in CA, you could file suit in Maryland. The forum, i.e. where to file, is a separate issue from whether there are attorneys fees provisions in the contract. If you get an attorney to write a demand letter, both you and the attorney should be prepared to go forward and file suit if the letter does not get the intended result.

Re: How can I collect $21,000.00 from a client in California without extensive l

Unless the contract provides to the contrary, you can almost certainly sue in MD, since they did business with you in MD. We handle this type of case on a regular basis, and in commercial cases we NEVER file based on where the defendant is unless the contract provides for that exclusive venue, or unless they did not have sufficient contact with the plaintiff at its location. If you are a corporation, you do need a lawyer in MD as well, but this sort of case is usually handled on a contingent (percentage) fee.