Legal Question in Business Law in Tennessee

Can small business (incorpororated) sue non-paying client in small claims court?

We are a small photo-finishing company with a non-paying client. He has not responded to multiple collection letters and phone calls. His account is over 160 days old. Can we as an incorporated business sue him in small claims court? If so can we do it in Tennessee if his business is located in SOuth Carlina? Or can we only turn him over to a collection agency? Can we report him to BBusiness Bureau and other organizations? Thanks for any help


Asked on 8/04/04, 3:59 pm

2 Answers from Attorneys
James R. Becker, Jr. Becker Law Firm

Re: Can small business (incorpororated) sue non-paying client in small claims co

You can sue him in general sessions court, but have to have an attorney to do it.

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Answered on 8/04/04, 4:06 pm
Dr. Michael A. S. Guth Tennessee Attorney at Law Assists Pro Se (without a lawyer) Parties

Re: Can small business (incorpororated) sue non-paying client in small claims co

Collection agencies are a complete waste of time. Yes, you can file suit against the firm or client in South Carolina under the TN Long Arm statute. Instead of trying to research how to write a complaint like that yourself, I recommend you go to http://riskmgmt.biz/prose.htm and pay $100 for a simple complaint to be drawn up for you.

With a little luck, you can add your attorney fees to the amount to be reimbursed -- although that is generally not allowed in civil litigation unless the other party was aware of the transfer of attorney fees at the start of the business transaction.

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Answered on 8/04/04, 4:53 pm


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