Legal Question in Credit and Debt Law in New York

Best way to recover over $25K from NYC company ?

My NYC company provided services for particular NYC customer and several of his NYC companies for few years on 1 or 2 year contracts. Current dispute arose at the time when they wanted us to relocate services to their new office. 2-4 month prior to that time initial 2 year contract had auto-renewed as per contract: ''This Agreement shall automatically renew for successive period equal to the initial term, unless canceled 30 days prior to the renewal date''

Customer didn't send any cancellation notice and claims that he didn't received any notice of renewal from us and refuses to pay any monthly invoices after the initial contract term ends. But continued to use services for several month after disputing invoices.

Q1: Taking is consideration the contract terms above and NYC law in Sep/1999- Nov/2001 was the notice necessary and were law required it to be sent any particular way?

Total moneys owed by now is between $34K-$54K

Q2: What is a best way to recover money at this point?

(Partially agree with customer and consider each month after initial term of 2 years to be month-to-month and pursue each month in small claims court? Go for 25K limit in civil court or go for full amount in a supreme court ?)


Asked on 7/06/05, 6:24 am

1 Answer from Attorneys
Guy Lewit Guy Mitchell Lewit, Esq.

Re: Best way to recover over $25K from NYC company ?

I would take what's behind curtain number 2. Sue for $25 Grand in Civil Court. If you sue for $34 grand in Supreme odds are they'll kick you back down to Civil Court anyway. Courts sometimes have problems with auto renewing contracts...some areas forbid them. What might save you is the fact that the debtor used yhour services after the renewal...that to me would be a ratification of the agreement.

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Answered on 7/06/05, 11:19 am


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