Legal Question in Credit and Debt Law in Canada

Collection of Commercial Debt

A Canadian firm owes a remaining balance of $250K for services rendered in Sep. 2000. They have paid $500K out of $750K. What are my options to collect this money with a minimal amount of time and expense? I am the Director of an operating unit in California of a Delaware Corporation. Your advise is appreciated.


Asked on 3/08/01, 6:11 pm

3 Answers from Attorneys

Christopher Enge Law Offices of Christopher J. Enge

Re: Collection of Commercial Debt

You have several options, but the main factor will be the degree to which the Canadian company does business in California. It sounds like you may have to file suit to collect. There are rules governing whether the U.S. or state court has jurisdiction over a foreign company. You should also consider whether the Canadian company has assets here in the U.S. If not, you might have to go to Canada to enforce your U.S. judgment. Lastly, your rights may be different under Canadian law than under U.S. law, and it might be more advantageous to pursue the case in one country or the other. I have worked with Canadian lawyers on business cases like yours, and would be happy to take a look at your case.

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Answered on 5/17/01, 4:17 pm
Christopher Enge Law Offices of Christopher J. Enge

Re: Collection of Commercial Debt

One more thing. The law or the contract may limit the time within which you can file suit. If you are going to pursue your case, you should have a lawyer look at the case right away to make sure you do not waive any rights.

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Answered on 5/17/01, 4:19 pm

Re: Collection of Commercial Debt

There are several factors that will decide how to proceed. I presume that you have a written contract. Did the contract state where any dispute would be resolved, i.e., California, CAnada, Deleware? If so that is likely going to dictate where the suit should be filed.

Another factor is whether there are assets to recover. If so, where are the assets located and how easy or difficult will it be to collect on them?

I would be happy to discuss this matter in detail with you.

J. Caleb Donner

805-494-6557

We are LEGAL WARRIORSsm

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Answered on 5/17/01, 9:05 pm


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