Legal Question in Business Law in Oregon
I was the owner of a company that failed and was dissolved under Oregon Law. One of our vendors has sued me personally in small claims court as I had signed a personal guarantee. However, the vendor never contacted me in any way regarding this manner or their intent to go after the personal guarantee. I am going to have to pay the original bill, but they have added $440 to the bill for court costs etc. Am I liable for that cost? It is printed in the instructions to plaintiffs that they "must have made a bona fide effort to collect the claim from the defendant." Since I am the defendant, not the business, am I still liable for that charge?
1 Answer from Attorneys
Tell the Court that the vendor never contacted you about you personally paying the debt. The first you heard that the vendor was seeking to have you personally pay the debt was the lawsuit filed in small claims court. The Court will likely not require you to pay the $440 for court costs, etc., but there is no guarantee of that.
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