Legal Question in Credit and Debt Law in Massachusetts
Non-payment for services
What recourse do I have to go after a client that now refuses to pay over $35,000 in invoices? His contract for public relations services expired in 11/07 and at that point he requested we continue on at the same rate ($7K). He kept current through November. As time went on we were told his Venture Cap funding (he's in the tech indust) was very delayed and when we expressed concern he assured us the money was coming. After 5 months of ''it's coming'' and one good faith pmt of $3,500 in Feb 08 we have severed services. He now refuses to pay the balance of what is owed. He is based in MA. I would like to sue for the amount! Is there a provision for damages in MA as well? We are a two person agency and this amount represents 30% of my entire annual income!
4 Answers from Attorneys
Re: Non-payment for services
You should retain a Massachusetts attorney immediately and send them the contract and all correspondence and invoices after it expired in November, along with any information about assets, especially any real estate, owned by the debtor, so that an appropriate action might be started to recover what is due to you.
Re: Non-payment for services
Given the amount in controversy in this dispute, I would recommend retaining a local attorney.
You will want to provide your attorney with the contract at issue, any relevant correspondence, invoices, proof of payments made, etc. Many of the details you seek in your question can probably be answered by a thorough examination of the terms of the contract and other documents.
It would be advisable in an action like this to seek an attachment of the other party's property, if any is available.
Re: Non-payment for services
I would agree with the above responses. Cases of this type are often handled on a "contingency fee" basis, which means you pay little or no legal fees until there is a successful recovery.
It should be noted that if the debtor corporation is insolvent, you may have difficulty recovering.
Feel free to call/email with further questions.
Re: Non-payment for services
Assuming you performed the bargained for services, you have a right to bring an action to recover any and all amounts owed. There is a provision for damages under Massachusetts law which generally is the contract price less any payments credited to the breaching party. The particulars would be governed by the terms and provisions of the agreement (whether oral or written). As an example, there might be a provision in a written agreement for reasonable attorney fees, or there might be a clause limiting damages to a specified amount etc.. Please feel free to contact my office for a free initial consult based on the facts of your specific situation.