Non Payment From Client, How Long To Wait For Small Claims Court?

Question

I have a client who owes me over $1000.00. It's been well over 45 days, the work (graphics for 20ft banner & web design work) was turned over to them in good faith and I have emails to confirm they received everything. There was a time crunch due to a convention they were attending. In the past they have paid me on time, now they won't even return my emails or calls.

I am being patient and have sent them the invoice 3 times. I'm wondering at what point would be a good time to file a small claims lawsuit against them to collect the money owed. Also, I would like to know if I can include time spent putting the paperword together in the claim. It will take me about an hour and a half to make put everything together. Any other suggestions?

Thanks for your help..

It's worth it. I work from home so it won't interrupt anything. It's over $1000.. That's worth it to me considering I don't get a paycheck every week. I have to rely on my clients paying me on time.

I've already advised them, I will not take anymore projects from them unless paid upfront so losing them is not an issue.

My invoices state that payment must be made within 5 business days of work being turned over.

I have well over 20 clients who all pay on time and most pay before I even start. There are about 20 employees all together. My reputation is not on the line here, there inability to pay for work completed is the problem.

My intentions were to wait until March 1st of next year to do anything.

Last thing.. I'd rather lose the $1000 than give it to a collection agency to collect on my behalf. If that were my only alternative, I'd negotiate a payment from them myself.

Answer 1

#1. Send them a certified, return receipt letter demanding payment to be made giving 2 weeks after receipt of letter (specify date)

#2. If they do not respond, then send them another certified, return receipt letter stating you will take them to small claims court on such and such date if they do not respond. In letter also state that they will be held liable for all court costs and fees along with any balances owed you for work performed.

#3. File complaint at small claims court and take copies and receipts of certified letters, invoices and all contracts.

The more documentation you have on your behalf the better chance of winning the case. In small claims they require you to send certified letters.....get cracking honey and good luck!

Yes, you can add hours to the filing of claim for undue stress (i.e. punitive damages). Small claims court is for cases $5000 and less and costs around $50 to file complaint and around another $25 to serve notice to person via sheriff (always good idea as sheriff gets signature and proof of delivery).

http://www.jud10.org/CountyCourt/SmallClaims/claims.htm

Answer 2

First question I have is what terms did you give them. Was it cash on delivery or payment in 30 days. Most credit insurers or banks would not consider the payment suspect until it is over 90 days old.

Is it a large company. Most large companies have 45 to 60 payment terms or expectations. Can you talk with your contact at the company and explain your situation that you require payment soon. They may be willing to work with their A/P department.

Small claims court should be last result. It does cost, but what cost more is your ability to do work for them in the future. Take them to court over a 45 day past due and you will soon find you won't have any work from anyone.

Answer 3

Small claims court in one way, but make sure you have all your i's dotted and t's crossed. There are certain steps in you must take before you can go to small claims court. It varys in each state, proly even county. Just remember, going to small claims court and sending them to a creditor will more thnak likely end "good terms" with this client. That might be for the better though. Good luck!

Answer 4

Well, if you consider the time and energy it will take you to take these people to small claims court, it might not be worth your time.

An alternative is to turn them over to a collection agency. Let the collection agency try to get the money from them. If that fails, then try small claims court.