Legal Question in Business Law in New Jersey

Any attorney will say to contact the customer and try to get paid in full. Failing that, your recourse is to sue, possibly in small claims court. Consult with a good business attorney in your area for specific advice.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

Yes, you can sue (either in small claims court up to $3,000 or Special Civil Part up to $15,000). However, knowingly passing a bad check in order to obtain goods or services is a crime. If you notify the customer that the check bounced, and they don't make good on it within a short period of time, there is a presumption that they intentionally gave you a bad check. If your customer does not make good right away, then go to the police (in the town where they gave you the bad check) and file criminal charges for passing a bad check. When they receive the criminal summons, that will most certainly get their attention. This is not a lawsuit. It is a criminal complaint by the state, with you being the state's witness. Most likely, they will rush to pay you even before court. You will still need to appear in court if summoned. If they don't pay you before court, most likely the prosecutor will tell them that the charges will be dismissed if they pay you. That will likely get you paid. If you don't wish to bring criminal charges, then proceed to a lawsuit if you can't work it out. However, criminal charges may move this along faster for you. What your customer did is no different than stealing.

Jeffrey has summed up the law quite well. The problem, if any, is that you say you are in NJ, but do not say where the customer resides, NJ or another state? To get jurisdiction over the customer who resides outside NJ, be it civilly or criminally, might require starting suit where the customer lives.