Who is jurisdiction in this case?

Question

I did business with a company in Oregon. I am in Missouri. They set my account up on a monthly autodraft and took 3 months worth of money out of my bank account. The problem is they never even delivered one months worth of goods. They kept telling me that they would "get caught up". After 2 months of that excuse, I had my account taken off autodraft, but they still aren't caught up. I found out this morning that they are out of business as of last week and the owner is declaring bankruptcy. Do I file a small claims court suit in Oregon, Missouri, or is the a federal small claims court since this is involving interstate commerce? As a disclaimer, I will not hold anybody accountable for any legal advice that they offer by answering this question. They owe me about $1530.

Answer 1

If they have already declared bankruptcy, you are legally enjoined from proceeding with any legal claims against them for business debts arising from before the bankruptcy. This is the principle of the "automatic stay" in bankruptcy cases. More information about that here: http://www.lawdog.com/bkrcy/bkcp7e.htm

Your only recourse is to join in the bankruptcy as a creditor. There are narrow circumstances where you can get relief from the stay and proceed against the company while the bankruptcy is going on, but from the facts you have given I don't see a court granting that. Contact a bankruptcy attorney that handles creditors' claims.

Answer 2

There is no federal small claims court.

You can file in Missouri, where you were harmed, or in Oregon, where the defendant is located.

Answer 3

As was already stated, you can file in either state. Pehaps talking to the bank you have your credit card or debit card through would be the best first step, claiming it was fraud. they many times have fraud protection.


Also, thanks for the disclaimer, but you couldn't prosecute anyone here, anyway. If you try, I will counter sue you. =o)