Legal Question in Business Law in New York
A film company we did sound for owes us $23,000
Round house music, inc completed over
380 hours of audio editing for
recording for One City Productions LLC
for a total of $23,500.
The production company failed to pay
30 days after the audio master was
delivered.
What can we do to recoup what is owed
if the production company has no real
assets?
6 Answers from Attorneys
Re: A film company we did sound for owes us $23,000
Either go home or sue them and try to get what is owed you. From a business decision point of view, the answer should be very clear.
Good Luck
RRG
Re: A film company we did sound for owes us $23,000
It sounds like you are putting the cart before the horse, not that looking toward the future is a bad thing. You first need to get a judgment against the production company before you can start executing on assets. That means suing them. However, if you know that they are thinly capitalized, and you have a legitimate basis to believe that they will be transferring or squandering assets, then you might be able to seek an order of attachment to freeze anything they do have while your lawsuit is pending. This is why it is always a good idea to try to get personal guaranties whenever you do business with a small company or LLC.
Hopefully you have a contract with them that provides that you can recover your reasonable attorneys' fees, costs and disbursements in the event they breach. Otherwise, if they have any reasonable defense requiring the case to go to trial, you could possibly spend $23,000 on lawyers.
Consult with an attorney to see if you can file a motion for summary judgment in lieu of complaint. If you can, that might be a shortcut to the judgment.
Re: A film company we did sound for owes us $23,000
When you say the production company "failed" to pay, are you saying that they are refusing to pay? Is there any basis for that refusal? Are they still in business? There are a number of questions to answer to get a better picture on the situation. Nevertheless, in the end, if they are in business and are unreasonably refusing to pay, you can sue the production company and obtain a judgment against them. At that time collection efforts can be started. In terms of "assets," they may have accounts receivable that you can attach. My firm handles these types of cases and I would be happy to discuss this further with you. Feel free to contact me at your convenience.
Re: A film company we did sound for owes us $23,000
If you have ever received a check from them,the records of that acount can be subpoenaed and in conjunction with an action to reover your fees, you can seek to attach the acount. Alternatively,
determine whether there are individuals who might be liable. If you wish to disuss this, feel free to contact me.
Re: A film company we did sound for owes us $23,000
The first step would be to initiate a lawsuit either via a summons and complaint or a motion for summary judgment. If the production co. does have minimal assets then you may want to seek an order of attachment as well. We happen to be right in the neighborhood and this area of law is our specialty, however, we would need some more information before making a complete and proper determination. You are welcome to contact us for a free consultation.
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Re: A film company we did sound for owes us $23,000
One of the first issues to consider is what business form was the company operating under. Depending on what type of company this was there are a variety of options.
You should contact my office for a further consultation on this matter. You can reach us by email at the email address provided below, you can visit our website at www.cgonzalezlawfirm.com or you can contact us directly at 2127098303
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