Legal Question in Business Law in California

Re: Loans

One of my clients had a similar case last year. We filed a complaint for breach of contract and fraud. The ex-boyfriend hired an attorney and the next thing we knew he had filed bankruptcy which stayed our civil action and discharged the claim.

Re: Loans

You can sue him for breach of your oral contract. Fraud is hard to prove and would need proof that he had no intent to pay you when he borrowed the money.

Re: Loans

You can sue for breach of a written contract. Having the signatures notarized was unnecessary, but perhaps adds a small measure of weight to the seriousness you felt about getting repaid, which might influence a judge or jury in your favor. Did the agreement call for interest? If so, and if the amount were over 10%, you might have a problem with the usury laws.

As for fraud, you can add a cause of action for promissory fraud on top of your cause of action for breach of contract, but fraud allegations must be pleaded very fully and precisely to survive a demurrer for failure to state a cause of action. If you retain a lawyer to prepare and file your suit, you'd have a better chance to succeed with the fraud charge.

If the amount you are owed is less than maybe about $10,000 - 12,000, you may be better off cutting your demand to $7,500 and filing in Small Claims Court on the breach of contract alone. You'll save attorney fees and get a much quicker judgment.

Re: Loans

You can sue him for breach of contract. If he works and you receive a judgment, you can execute against his wages. You can also execute against his bank account(s). I hope he's an ex-boyfriend by now.

Re: Loans

Fraud would be more difficult, but breach of contract easy, to prove. However, if he has no money or assets, indicated by the need for loan, how do you expect to collect? You can certainly get a judgment, that someday may be collectible, such as if he inherits, or he starts earning a living, or gets assets that can be levied against [like a large gambling win]. Feel free to contact me if serious about doing this, knowing the realities.

Re: Loans

You have the option of suing him for the money owed. If you're in my area, please feel free to call me.