Q: Client from out of state won't pay first invoice. Can I take him to small claims in CA?
Found out two other contractors were unpaid who live in different states. I feel he is going to defraud other people and not pay them. It seems like it is a bigger problem than just my case. We have a contract outlining he will pay at the end of the month, but I found out after a team meeting that he had wont unless some arbitrary criteria was met months later (not part of the contract). I quit after doing work for him which he is benefiting from. He owes me over 4,000 after working for him for 9 days. He refused to pay the invoice. The contract has some clauses that make it seem like he is trying to avoid consequences, but I feel a breach of contract nullifies them.
What are my options?
He lives in Bowling Green, KY. The address on the contract that he uses is for his family meat packing business.
A:
Based on the details provided, here are a few key things to consider regarding your options for getting paid and taking legal action:
- Small claims court is handled at the state level, so you would need to file suit in the defendant's state (Kentucky in this case). You generally cannot file a small claims case in California against an out-of-state defendant.
- However, some states allow you to file in regular civil court (not small claims) even if the defendant lives elsewhere. The amount here might qualify to file a civil lawsuit in California.
- If the contract specified terms related to governing law and jurisdiction, those may dictate where and how any disputes must be handled legally.
- If you have evidence the client committed fraud or deceived you regarding payment, that would strengthen a case filed in either state. Breach of written contract terms would also merit damages.
- Rather than court, you could consult a collections agency to pursue payment on your behalf across state lines. Or negotiate directly and firmly insist on full payment, referring to the signed contract.
- If others were also defrauded, you may be able to organize collectively or alerts authorities. But from a legal perspective, focus initially on collecting for your own services rendered based on your contract and invoices.
In summary - small claims likely requires his home state, but other options like civil suit or collections could be initiated from California. The contract terms, evidence, and amount owed would determine your prospects. Consulting a business or contracts attorney for advice would also be recommended given the interstate issues.
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