Small Claims Court - info

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mjk

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Hello,

It looks like I am going to have to go to Small Claims Court soon. I have absolutely no experience, and am reaching out to see if I can get some general information.

Details:
A local business shuttered its doors, and owes me money for services not rendered. I was fortunate enough to have made a contact with the MN AG office, and they have pursued this person to mediate a settlement. This person has not responded to any inquiries from the AG, and there is concern that this party may not even be around anymore. This person is from Russia, and apparently has had several issues conducting business within this state before (this came directly from the AG's office).

Since they can't locate her, the next step would be to pursue her in Court. So, what happens if she does not appear in court? Does this become a waste of my time and court costs?

I appreciate any input.
 
if she is not in the state(MN) or country(USA) anymore, then not much help.
but:
go to google translate and try to get her name in kyrilic/russian letters, then google/facebook that to see some whereabouts. also google/facebook the english letters name...

the idea is if you can't recover the money now, to tack a judgement to her credit/SSN so when she comes back she will have to contact you to settle her debt if she wants access to credit. i think each state has rules how long a judgment is valid/resets (6/8/10 years)

you may have to move to a cash/pay-on-the-spot policy with new businesses(not older then 2 years).....
 
Here in Florida, a small claims victory is not truly binding. In other words, no action will be taken to collect a financial payout.

I had a drunk guy punch, kick and damage my car, about $1500 worth of damage. I learned that he could simply walk out of the courtroom, without paying, and never pay. My only recourse would be to then go before a judge again, and hope the judge allows me to place a lien on his property. That property is something which I MUST have information about, I could not place a lien on a leased car for example. At which point, "IF" he sells said property, I'd be among the first to get paid.

For example, a lien against his car, would place me in line to be paid, after the bank loan. If, for example, he keeps his car until it has low value or is totalled, I don't get paid the full amount. If I place a lien against his home, he could keep it for 30 years and I'd be dead and buried before I get my money.

Not exactly a simple or worthwhile process for $1500. And most scam artists know this.

By the way, my car remains un-repaired.
 
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I appreciate the responses thus far. The little I know about the matter, would be applying a lien on her property. So what you have responded with seems to fall in line.

What a screwed up world we live in. To make a point, yes she is a Scam Artist. She allegedly stole over 40k from a non-profit she was involved in, prior to this business venture.

I'm not even sure this is worth my time, as it is under 1,000.00. Money is money, though.
 
Was the person running the business as a Sole Proprietorship or Corporation? Did they file for bankruptcy?

Go to the courts website for your area and they should have a page just for small claims. They will tell you all the rules and what is and is not allowed. In some states you can't sue a business in SCC but in many others you can.
Do you have an address for the person? The court wants you to be able to serve her, usually by certified mail.


If you do get to court make sure you have 3 copies of anything you want the judge to see (1 for judge, you, and other party). Keep it very dry and to the facts. No he called me a name or might have done etc... Do not interrupt anybody. Wait your turn and behave like an adult. This sounds like common sense but I have seen so much drama in SCC its comical.
 
I won a small claims case in NJ, and the defendant did not pay. I had to file with the Superior Court to register a lien. I still never got my money.
 
Originally Posted By: Jimzz
Was the person running the business as a Sole Proprietorship or Corporation? Did they file for bankruptcy?

Go to the courts website for your area and they should have a page just for small claims. They will tell you all the rules and what is and is not allowed. In some states you can't sue a business in SCC but in many others you can.
Do you have an address for the person? The court wants you to be able to serve her, usually by certified mail.


If you do get to court make sure you have 3 copies of anything you want the judge to see (1 for judge, you, and other party). Keep it very dry and to the facts. No he called me a name or might have done etc... Do not interrupt anybody. Wait your turn and behave like an adult. This sounds like common sense but I have seen so much drama in SCC its comical.
You know business is slow when you see two of the "brothers" fighting it out over a 1000 bucks in small claims.
 
Originally Posted By: pandus13
if she is not in the state(MN) or country(USA) anymore, then not much help.
but:
go to google translate and try to get her name in kyrilic/russian letters, then google/facebook that to see some whereabouts. also google/facebook the english letters name...

the idea is if you can't recover the money now, to tack a judgement to her credit/SSN so when she comes back she will have to contact you to settle her debt if she wants access to credit. i think each state has rules how long a judgment is valid/resets (6/8/10 years)

you may have to move to a cash/pay-on-the-spot policy with new businesses(not older then 2 years).....
Please tell us how you "tack a judgement" on her SSN". Hereabouts you need an "execution" to do anything.
 
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The odds are very poor for collecting a dime. I've been through similar situations and despite my best efforts, all I did was waste my time and raise my blood pressure. A neighbor down the street refused to pay several contractors for $thousands of dollars of work on her home. My son was one of those. She just didn't pay. As far as I know, none of them ever got paid and she continues to live there with her 700 ft2 house remodeled for close to free.
 
I wouldn't waste my time if I were You. I went through this with a contractor and when it came time to pay me he closed the doors and left town. People like this don't care about a credit report and will just skip out on any judgment.
 
Originally Posted By: ET16
I won a small claims case in NJ, and the defendant did not pay. I had to file with the Superior Court to register a lien. I still never got my money.


That's how it is in Florida. As annoying as such losses are, it's often better to consider the loss a "cost" of education in the school of reality.

In some circumstances, it's possible to deduct crime and theft losses on federal and/or state income taxes. https://www.irs.gov/taxtopics/tc515.html


EDIT: Some time ago, I needed advice on building and financing a home. At the time, there were all sorts of attractive financing options, including the possibility of borrowing, at a very good rate, from my boss. I talked to my billionaire boss' accountant. He gave me the best advice I've ever gotten in my life: "In all things, go conventional". By that he meant using the conservative, proven, mainstream and normal loan with a well respected firm that is unlikely to be bought out. But it also applies to financial transactions of all sorts, including purchases and business deals.

I avoided massive heartache by doing so!
 
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Decades ago I would file against deadbeat customers in small claims court, often with the same results as other posters. A waste of time, mostly because these types of people are experts at being evasive to avoid paying.

The process is a little foggy of details but as I recall you first file in small claims but you have to serve the defendant so they're aware they're even being sued. The papers must be served by someone who is not a party to the action; we usually used marshalls. The problem is, they're not going to go hunt someone down, the marshalls or whoever you use is just going to go knock at the address you provide and if nobody answers, they leave. They'll make a few attempts but after that they just return the papers unserved and you're dead in the water.

If you're able to get the papers served, you show up in court. If they don't show up you're awarded a judgement, otherwise you both tell your story and the judge decides. So, now you've got your judgement but the court isn't going to do anything for you. You have to execute the judgement to collect. We would get them to fill out a form stating their employment information and bank accounts but they often play games there too.

Best case is you have accurate information and get lucky on payday trying to collect. Often they close the account and you spend more effort trying to track them down. Also, almost every step requres a fee, so you're usually out a bunch of fees for nothing but lost time and aggravation.
 
Originally Posted By: crazyoildude
Depending on the State you are not wasting your time.. You just need to know the ins and outs and you are in.


To piggy back this one. I sued a customer once for not paying his auto repair bill. I won but he did not pay. So I went to the court and for a small fee the sheriff would go to their house and serve them the final judgment after the appeals date ran out and also put their name in the system as having a outstanding debt so if they got a credit/back ground check it would come up.

Well did not hear back until maybe 12 years later I was looking at the unclaimed property for NC and saw my name. When I was filling it out it said something about money from the court house. I'm guessing he applied for a job or loan/mortgage and it came up. So instead of getting $400 or so for the bill and court cost I got over double as the courts automatically add interest and they made him pay the full amount plus the compounding interest.

So yea it can be hard to get money after winning but if you follow the proper procedures and don't let emotions get the best of you then you can get paid many times.
 
In many states the only way to enforce a small claims judgement is through Civil Action (When the other party doesn't pay). Most small claim amounts can't justify the expense of a civil action.
 
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If the business is a LLC or similar there are papers on file with the state that include the address (lawyers office) where you can serve papers during business hours.

They may also have to have a surety bond which you can pursue.

Don't get your hopes up but they may play poverty while having hidden assets.
 
Typical responses for this group. Be scared, it might not work out, this could happen that could happen, it's best to stay secure in your shell, be careful don't take any chances. Blah blah blah

I guess the meek will inherit the earth.



Me. I'm sueing the thorn that hit my car. And I'm going to have fun with it.
 
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