Legal Question in Credit and Debt Law in New York

Small Claims

Is it possible to take a person to small

claims court and have a reasonable

chance at winning the case for a

personal loan of $5000 that was

never paid back? My mistake was

that there was no written contract.

The loan agreement was verbal.

Additionally, there was some

discussion via email and aol instant

messenger. I would like to take legal

action, but want to know if I have a

viable case without the written

contract. Are there any other pieces

of evidence that would be considered

legitimate, ie. emails, aol instant

messenger transcripts, witnesses

who heard discussion of the loan b/t

the two parties?

Any advice would be very helpful.

Thank you.


Asked on 3/03/09, 8:00 pm

1 Answer from Attorneys
Avi Naveh

Re: Small Claims

My opinion, this will be an uphill battle to recover the personal loan without a written agreement, but not impossible. In New York, General Obligations Code � 5-701(b)(3) and (4) are where you would want to focus your attention first.

See link: http://caselaw.lp.findlaw.com/nycodes/GOB5-701TXGOB05-701.html

Electronic communication such as your IM transcripts and emails may provide the court sufficient proof of a loan contract. If you have any proof of prior payments, then that could also help your case. Verbal confirmation from witnesses may not work, but I would recommend using any and all evidence you can to prove your case.

You could also establish the claim if you file a case and the defendant inadvertently admits the existence of the loan.

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Answered on 3/04/09, 1:19 am


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