Legal Question in Business Law in California

Re: Promissory note agreement

This looks like a straightforward breach of contract matter, and if the facts are as you say and there are no other facts that support a different view of the matter, you should win.

The economics of bringing suit for $10,000 are not real favorable, however. The amount is twice the small-claims maximum and legal fees to sue in municipal court would eat deeply into that $5,000 difference unless the bonding company settled fairly promptly. I think the best advice is to get a free consultation with a local lawyer about fees to initiate some preliminary collection efforts on your behalf. Maybe they'll settle or at least you can flush out their defense theories.

Although the instrument they gave you is labeled a promissory note, it is somewhat unusual because of the conditional nature of the promise. Reward matters are handled as a type of contract and when you fulfill the conditions for earning the reward the party offering it can be sued and forced to pay under contract principles.

Re: Promissory note agreement

You need to obtain a certified copy of the arrest report from the department (i.e. city police or county sheriff's dept.) that did the intake when the fugitive was arrested. You should then write a demand letter to the bail bond company.

Do the following in your demand letter: 1) identify yourself and the bail bond company (legal name and owner if applicable). 2) Explain the agreement between the parties and refer to the promissory note (which you should make a copy of and attach as Exhibit A), 3) Briefly describe the details of the arrest report (and attach a photocopy of said report as Exhibit B), 4) Make your demand for the $10,000 and tell them when you want it (7-10 days is customary) and who you want it made out to (yourself most likely), how/where you want it paid (via wire transfer, cashier's check, company check, etc.). 5) Tell them what you will do if they do not pay by that time (i.e. sue them in Superior Court). Make sure that you act on this quickly as the statute of limitations began to toll on this matter when you learned that the bail bond company elected not to pay you.

One final bit of non-legal yet practical advice, be courteous and professional in your letter when dealing with the bail bond company. You helped identify the whereabouts of a fugitive. Be mindful and careful of this fact. It can get rough out there...

Please feel free to contact me should you have any questions or need any follow-up.

Best regards,

David Bolls