Legal Question in Credit and Debt Law in California

Hi, I have a vegetable wholesale business, which is set up as a corporate company. Last year, I have a customer (a restaurant business LLC) that accrued a debt of a little over $11,000. The former owner avoided because he was in the middle of selling his business. He said the new owner will be responsible for the balance due, which the owner agreed upon via text directly to me. After the acquisition, the new owner stopped responding and will not pay the balance. He has set up a new business name, but still the same restaurant name. I don't want to take it to small claims court because it would be I have to forfeit over $6,000. Is civil court the only other option for me? Would a demand letter help in this case? What would be the best course of action to ensure they will pay me. Thank you for answering my question!


Asked on 4/06/21, 1:42 pm

1 Answer from Attorneys

Timothy McCormick Law Offices of Timothy McCormick

Unfortunately you are stuck in a gaping hole in the legal system, between the $5,000 Small Claims cap, and the roughly $50,000 it takes for cases to be worth suing over in Superior Court, and that's if there is an attorneys' fees clause, make it more like $150,000 otherwise. And to make matters worse, as a corporation you cannot represent yourself in Superior Court. The only thing I can suggest is hiring a lawyer for a few hours to "rattle the sabers" at the debtor and see if that shakes some money loose.

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Answered on 4/06/21, 2:51 pm


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