Legal Question in Credit and Debt Law in California

Seeking Advice about civil suit

I have a Furniture Store, now virtually closed due I lost my lease and moved from previous location. In the past three years we had home financing to customers, documenting sales thru security agreements.

some of those agreements, (sales) were transfered with recourse to one acceptance company, receiving advance for those transactions.

Because customers did not pay the amounts agreed, now that acceptance company have entered a civil suit against me as a guarantor for about $ 17,000, but the current amount due to such company is about $ 12,000.

My question: is it legal to suit for a higher amount than currently owed and if we can fight that action at court

thanks.


Asked on 2/12/06, 2:55 pm

2 Answers from Attorneys
Douglas A. Crowder Crowder Law Center

Re: Seeking Advice about civil suit

It is common for creditors to sue for more than what the defendant thinks is owed. Sometimes they add in interest, attorney fees, penalties, and other charges. In any event, most lawsuits settle for less than the amount originally asked for.

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Answered on 2/13/06, 1:48 am
Carl Starrett Law Offices of Carl H. Starrett II

Re: Seeking Advice about civil suit

The allegations made in a civil suit are simply that: allegations. The amount of the claim is not evidence and the pleadings can be amended to reflect the claim amount, up or down, at almost any time during litigation.

During the course of any lawsuit, the parties engage in discovery to investigate the nature and validity of the claims. If the matter goes to trial, the judge or jury will make its ruling based on the evidence and not the allegations of the complaint.

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Answered on 2/12/06, 3:15 pm


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