Legal Question in Civil Litigation in Maryland

Re: Small Claims Court

You can continue, but it may be a long road

at the end of which is an uncollectable judgment. You

should decide how much your time and effort

is worth versus the amount of the check (not mentioned).

It seems the person or agent for the company,

is evading service of process. He figures if he is not formally served,

his company cannot be formally sued. But there are ways

around this. Go to a law library (or a good local library)

for a copy of Maryland Rules. In Vol. 1 there

are rules for service of process.

District Court Rule is 3-121(b)&(c). These

rules say if a person evades service, you can

file an affidavit on it, and ask the court

to allow "substituted service." That is the old-style

"service" by posting on courthouse door, ad in a newspaper

where defendant last resided, leaving a copy of suit where

the defendant last resided, etc.

If the court OKS "substituted service"

then once requirements are met, your case

can proceed. You get your judgment

against the defendant "in abstensia." (For

"judgment on affidavit" in District Court,

see Rule 3-306).

Then you have to collect. You may want to talk to

an attorney who does collection work to advise you.

See Rules 3-621 to 3-633. If defendant is in another State,

you may need to enter the judgment in a court there and

collect under their procedures. Or you could try

to attach or place a lien on any property held by

the corporation in Maryland, but that will require

research and perhaps other delays.

The defendant could attack the judgment as issued without his

knowledge (but you note substituted service was permitted by the court),

or file other challenges. Or, the company could declare bankruptcy.

And that would be that. Even if you had a judgment by then, you are

likely not to collect much. If the defendant or his company

is broke, you may face the same result even without bankruptcy. The best you might get is a defendant

who you can find, accepts judgment, and offers settlement.

You could settle (hint: don't take a check) and call it even.

Wheels of justice turn slowly. If you persist

and follow the Rules, you might have a judgment

of value, and could put the defendant in a position of

having to pay up or go through the trap door.

I would try "substituted service" and take your case to judgment.

Then, you can decide on collection. A judgment lasts for years and

earns interest. The sooner you move to collection,

the better your chances.

A judgment against corporation is not a judgment against the

president or owner. If the corporation has no

assets but the person does, you cannot move against

the person unless you show he drained corporation of assets

to avoid judgment (fraud against creditors). But that

is a whole other story...