I have a small claims court question

[kkwis2]

I have a small business that deals with decorating for weddings. This is the first time I have a client who has not paid me yet. I require a deposit for 1/2 the estimated amount when the contract is signed. The remaining amount is $498. The wedding was September 28. I have e-mailed her four times (she responded once that she had been on her honeymoon and therefore hadn't responded) and called once. I have been very professional and polite thus far, but I am getting frustrated and simply want the money that is owed to me.

I have no idea how to proceed from here. My contract (which she signed) states that the client will pay all legal fees + a $50 penalty if not paid within 7 days of the event.

Do I contact a lawyer? Do you seek legal representation for a fairly small amount of money?

I know some things vary by state, but any general advice would be appreciated.

 

[davedmaine]

I have a small business that deals with decorating for weddings. This is the first time I have a client who has not paid me yet. I require a deposit for 1/2 the estimated amount when the contract is signed. The remaining amount is $498. The wedding was September 28. I have e-mailed her four times (she responded once that she had been on her honeymoon and therefore hadn't responded) and called once. I have been very professional and polite thus far, but I am getting frustrated and simply want the money that is owed to me.

I have no idea how to proceed from here. My contract (which she signed) states that the client will pay all legal fees + a $50 penalty if not paid within 7 days of the event.

Do I contact a lawyer? Do you seek legal representation for a fairly small amount of money?

I know some things vary by state, but any general advice would be appreciated.

If they have the money, yes, contact a lawyer. If they're poor white trash, don't bother. Not worth it.

 

[Kathi OD]

I feel for you...there will always be people who try to get away with something, and weddings seem to be rife with opportunities for this stuff.

Sadly, it works both ways. DD waited 3 years for her wedding album (which was completely paid for BEFORE the wedding).

I don't know that I would want to be bothered going to court over it, but I would definitely threaten to do so by sending a certified letter stating the facts and requesting final payment by a specific date. If the payment doesn't arrive, I'd file the complaint. In MN, it costs $80 to file, not that much and $400 in your pocket is better than the $0 you have now.

 

[Katlyn]

My Niece has a small side business and has had to deal with this at times. Like the PP stated, she sends a certified letter and if that doesn't get results she will file with the local magistrate. Usually the letter works and the people pay up. Filing fees around here are around 50.00. Good Luck

 

[Cheshire Figment]

Most small claims courts do not require an attorney unless it is a corporation involved.

You go to the Clerk of Court office and file your complaint, paying any fees at that time. Someone at the Clerk's office will be able to explain everything for you.

I would not contact an attorney, as the fees involved will probably be much more than you can recover.

 

[Kathi OD]

Forgot to add, as another PP said, no lawyer for small claims court. That's really the whole purpose for the court, so people who have smaller amounts of money to collect can do so without hiring a lawyer.

If you contact a lawyer, you'll end up paying them any monies you might recover.

 

[tvguy]

Well, it's only 30 days overdue. The reality these days for many folks is a bill really isn't overdue until 60 days after the due date.

 

[Handbag Lady]

Well, it's only 30 days overdue. The reality these days for many folks is a bill really isn't overdue until 60 days after the due date.

What are you thinking? It is overdue. Overdue is overdue, no matter what someone thinks.

 

[01spirit750]

Just an FYI
You letter must be sent certified letter and you must have proof they signed for it.

The official legal term for this letter is a "demand letter" which clearly states what you expect and exactly when you expect it.

example: I expect $x.xx by xx date or I will be taking xx action.
Also reference the signed contract.

You local small claims office or website should have a lot of information about the process.

Also remember that winning a judgment is different than actually collecting. collecting after you win is up to you. The court will not assist.

 

[meajuly5]

Small claims without a lawyer after sending the letter is your best bet.

 

[a742246]

I would keep calling and speak to the person instead of emailing. Use Small claims as a last resort (after 3 months). Hopefully they paid you by check and you have a copy of it. This way you know where they keep their money, in case you go to small claims and have to collect.

Verbal communications in a polite but firm manner works best.

 

[ready123go]

That's rotten.

We just had to file a small claims case against a client who wasn't paying. The court clerk (girl who answered the phones) was great. She gave me a lot of helpful information. I'm sure she's seen it all.

Many claims are settled before it gets to court, or sometimes right in the hall. Also, you may have to settle for a partial payment, IF they pay in cash/cashier check and they pay right then (this is more or less what we decided to do). It's not fun to have your labor and expertise devalued like that, but it will be less headache to collect that partial payment than garnishing someone's taxes, accounts, wages, etc.

Of course you know your typical client and this is your call, but I might consider changing your contract, so that you can collect the money the day of the ceremony. You might also consider upping your penalty. Again, based on how often you have to deal with this sort of thing.

Absolute best of luck to you.

 

[bumbershoot]

And this sort of thing is why all of the wedding vendors we used (and all that we didn't) required FULL payment 2 full weeks before the wedding. Except for our site (they were also the caterers and alcohol providers), which took our check AT the wedding.

One of the florists we met with required money before you even got a quote from her!

 

[kkwis2]

Thanks for all of the answers so far.

I try to be as accommodating as possible to my clients ~ it's just good business. My business relies on having an exact count of guests who will be attending the wedding and that number can fluctuate right up to the day of the wedding, so requiring payment in advance is difficult.

I should have said that while I did call the client, I was only able to leave a message as she didn't answer (surprise, surprise). I will definitely call again. I tried e-mail again since she had initially responded to that.

I will also take your advice and send a certified letter stating exactly what the contract says and what I expect from her (amount and deadline).

Thanks! I'm happy to read any other thoughts you have.

 

[ready123go]

I would not tip my hand and mention anything about to her about expecting a certified letter or that you're considering small claims. She will avoid the postal clerk and it's better (for your argument) to get a signature or a 'refusal to sign' status on the letter.

 

[NYCDiane]

You don't need an attorney for a Small Claims Court case and an attorney will cost you more than the $400+ you're seeking.

Just send a certified/return receipt letter to her (and/or whoever signed the contract) demanding payment and include a copy of the contract with the section regarding payment highlighted. Send it via regular mail as well.

Tell her if you do not receive payment IN FULL within 10 days of the date of your letter, you will be taking her to small claims court for the amount she owes PLUS court costs.

 

[tvguy]

What are you thinking? It is overdue. Overdue is overdue, no matter what someone thinks.

Just a reality check. Called "aging", and it is not uncommon, and it is an accepted business practice. I bring it up because of the discussion of going to small claims court. A very common standard in court is to not only look at the black and white of the contract, but what accepted practice is. This is why most creditors don't start action until a payment is more than 90 days past due. Court is fine, but given the payment is only 34 days later, in the courts view maybe the action was filed prematurely.

http://www.askdavetaylor.com/what_is_invoice_aging/

 

[ready123go]

Just a reality check. Called "aging", and it is not uncommon, and it is an accepted business practice. I bring it up because of the discussion of going to small claims court. A very common standard in court is to not only look at the black and white of the contract, but what accepted practice is. This is why most creditors don't start action until a payment is more than 90 days past due. Court is fine, but given the payment is only 34 days later, in the courts view maybe the action was filed prematurely.

http://www.askdavetaylor.com/what_is_invoice_aging/

Do you think the recipient's action (or in this case, inaction) would still be considered "aging", given that the contract states the terms of payment (within 7 days) and the billed party is an individual, not a business?

 

[j's m]

I would also mail of a copy of the demand letter by regular mail at the same time as the certified letter. Get a proof of mailing for the regular letter. That way if the certified letter is returned, you can show you mailed a regular letter was also sent.

We own a business and have had certified letters returned. We took someone to small claims court, won the judgement and had the person declare bankruptcy due to his business owing his mother.

We've had the most success sending a collector to their place of business.

 

[manning]

I did wedding photos years ago. The advanced payment covered my costs. That way if someone failed to pay the only loss was my time.

Also the advance payment could cover cost and a little profit.at least you make something.