Does Someone Owe You Money?
Our law firm specializes in collecting money and debt that is owed to you for the hard work you put into a project or a service you have provided to a client. There are countless contractors, professionals, and businesses that provide a service or a product and then are not paid for it, which is fundamentally wrong. We are all entitled to the fruits of our labor. The following are answers to some common questions that we receive from our clients on a regular basis.
Do I Really Need an Attorney?
The short answer is that it really depends on the amount that you are owed. In California, small claims courts allow for people to go to court rather quickly (3-6 months) and obtain a judgment against the person that owes them money. However, if you do not prepare your documents correctly or do not properly serve the defendant, the court will throw out your case before it even considers whether you should win or not. This is one reason you should consult with an attorney to make sure you are doing everything correctly. While an attorney can help you prepare your paperwork for you and give you advice going into the trial, an attorney cannot attend the hearing (unless it is an appeal). Small claims courts are also limited to cases that are worth $10,000 or less. If the debt you are owed is worth more than $10,000, it is highly recommended that you hire an attorney to help you file your case and guide you through our very complex legal system. Cases that are worth between $10,000.01 and $25,000.00 fall under what we call a “limited” jurisdiction classification system that limits the amount of work and evidence that can be collected in the case with the hope of encouraging either an early settlement or a quick route to trial. The purpose is to reduce litigation costs for all involved. Even though the limited jurisdiction cases are less complicated, you should still hire an attorney to help you. Finally, if your case is worth more than $25,000.00, you will 100% need an attorney. These cases are typically very complex and involve a lot of money. There is a lot on the line to lose and you will need a professional going to bat for you.
How Quickly Can I Recover My Money?
If you filed a small claims suit, it typically takes 3-6 months to go to trial. If you win, the judge will enter a judgment in your favor and then you can begin to take serious action against people’s bank accounts, their real estate, garnishing their wages, etc. If your case falls within a limited jurisdiction case (less than $25,000), your case will typically go to trial within 12-14 months. If the debt you are owed is just slightly over $10,000 and you really need the money, you can lower the amount to fall within the small claims limits ($10,000). Otherwise, you will need an attorney to help you file your limited jurisdiction case. Finally, if the debt you are owed is worth more than $25,000, those cases will typically go to trial between 18-24 months. It also depends on whether each side requests a jury trial (which takes longer) or a bench trial (decided by the judge). Bench trials will go to trial much quicker. These are all things to think about before filing your case.
Can I Recover my Attorney’s Fees?
Unless you have a contract that allows you to recover attorney’s fees or there is some other statutory basis for you to recover attorney’s fees, you are generally not entitled to recover the money you pay to your attorney. California law does allow the recovery of $1,200.00 in debt collection cases even if your contract does not say you are entitled to attorney’s fees. Due to these limitations on attorney’s fees, we always recommend you come see us to prepare your service contracts to make sure you can recover all of your litigation fees if you win.
How Much Time Do I Have to Sue?
If a customer or client has breached your written service contract, you will need to sue within 4 years of the breach (failure to pay). You have 3 years to sue if the contract was verbal. If your case involves a statutory violation, you typically have 3 years to sue (with exceptions). You will need to consult with an attorney to confirm how much time you have to sue based on the unique facts and circumstances of your case. Navigating the law on how much time you have to sue can be very tricky so you need to talk to a professional to confirm.
If you have any questions about interpreting a contract or drafting one, please contact the Law Offices of Michael C. Murphy today at 818-558-3718 or email us at info@murphlaw.net.