Can I safely complain in public that a company owes my company money?

[LegalEaze]

What is the name of your state (only U.S. law)? Indiana

My company has an outstanding Accounts Receivable which has become apparent that the debtor is not going to pay. The money is owed to my company for services performed, and I have sent a demand letter via certified mail with no response within the given timeframe. It's clear that this company is not going to pay.

They are a well-know company in the industry that we both participate in.

My question is, can I safely (legally) state that fact in public, either orally or in writing?

In other words, if it's a true statement, is there still any opening for them to claim slander/libel?

I won't say anything other than the simple fact that, "Company X, owes my Company Y money".

What say you?

Thanks for any input!

 

[Zigner]

What is the name of your state (only U.S. law)? Indiana

My company has an outstanding Accounts Receivable which has become apparent that the debtor is not going to pay. The money is owed to my company for services performed, and I have sent a demand letter via certified mail with no response within the given timeframe. It's clear that this company is not going to pay.

They are a well-know company in the industry that we both participate in.

My question is, can I safely (legally) state that fact in public, either orally or in writing?

In other words, if it's a true statement, is there still any opening for them to claim slander/libel?

I won't say anything other than the simple fact that, "Company X, owes my Company Y money".

What say you?

Thanks for any input!

This will only make your company look bad. Pros would simply sue.

 

[LegalEaze]

This will only make your company look bad. Pros would simply sue.

Thanks for the quick reply. I do get where you are coming from. However, there is a large geographic distance between us, and the amount is not a lot of money. So, I'm not sure what options are available.

Believe me, I've thought about getting on a plane and taking it to small claims locally to them. It's not even about the money now. It's about the audacity to think that they can stiff a small vendor, when the rest of the industry isn't the wiser. But, since I couldn't gaurantee the court date wouldn't be postponed, that is probably out of the question.

Open to any suggestions. I'm not a legal eagle. I've been in business for over 20 years, dealt with dozens and dozens of customers, and have never had an issue. Lucky I guess.

Regards.

 

[Zigner]

Sue them or write it off and move on.

 

[quincy]

Thanks for the quick reply. I do get where you are coming from. However, there is a large geographic distance between us, and the amount is not a lot of money. So, I'm not sure what options are available.

Believe me, I've thought about getting on a plane and taking it to small claims locally to them. It's not even about the money now. It's about the audacity to think that they can stiff a small vendor, when the rest of the industry isn't the wiser. But, since I couldn't gaurantee the court date wouldn't be postponed, that is probably out of the question.

Open to any suggestions. I'm not a legal eagle. I've been in business for over 20 years, dealt with dozens and dozens of customers, and have never had an issue. Lucky I guess.

Regards.

I agree with Zigner but you have one other option between suing and writing the debt off and that is to have an attorney send the company a demand letter, threatening a lawsuit if they do not pay the balance owing on the account. If an attorney sends the demand letter, the company is made aware that you have consulted with a lawyer and are taking the matter seriously. The company might pay to avoid a suit.

Of course, if the company ignores the demand letter, you are left with Zigner's options - sue or move on. I would not consider writing a negative review an option that will help your company and it could, as Zigner noted, make your company look unprofessional.

I agree with you that, if in 20 years you have never had a customer issue, you have been very lucky.

 

[Zigner]

I agree with Zigner but you have one other option between suing and writing the debt off and that is to have an attorney send the company a demand letter, threatening a lawsuit if they do not pay the balance owing on the account. If an attorney sends the demand letter, the company is made aware that you have consulted with a lawyer and are taking the matter seriously. The company might pay to avoid a suit.

Of course, if the company ignores the demand letter, you are left with Zigner's options - sue or move on. I would not consider writing a negative review an option that will help your company and it could, as Zigner noted, make your company look unprofessional.

I agree with you that, if in 20 years you have never had a customer issue, you have been very lucky.

The demand letter is a very good suggestion, if the amount in question warrants it.

 

[quincy]

The demand letter is a very good suggestion, if the amount in question warrants it.

True. A general practice attorney can probably review the facts and draft a letter at relatively little cost to LegalEaze but, if the amount owed LegalEaze is also relatively little, it hardly seems worth doing anything but writing off the debt.

If asked specifically by someone for his opinion of this other company, LegalEaze can be honest and say the company did not pay for services performed. For LegalEaze to go out of his way to speak negatively about the other company, on the other hand, would reflect poorly on him and his own company's professionalism.

 

[LegalEaze]

If asked specifically by someone for his opinion of this other company, LegalEaze can be honest and say the company did not pay for services performed. For LegalEaze to go out of his way to speak negatively about the other company, on the other hand, would reflect poorly on him and his own company's professionalism.

I do appreciate all the input. My understanding of what you've said though, is that it IS within my legal right to state the simple truth as long as I don't embellish anything? I get that whether I should do that, or not, is up for debate in regards to how it will reflect on me and/or my business. However, just to be clear, I'm looking for legal fact, not business or etiquette advice.

The industry in question if full of alpha dogs. So, there is a lot of posturing that goes on anyway. Although, I normally try not to get caught up in that. This particular situation is simply the last straw with me because the company has told me on more than one occasion to submit the invoice. The people that I do business with will not think ill of me for taking a stand. I will probably be heralded for calling out this financial bully.

My guess is that a letter from an attorney will be met with a non-reply as well. I honestly think they are trying to "run out the clock" with me. To see if I will blink first.

BTW, the amount is just over a grand. So, I don't know if that qualifies as "worth it" or not. To be honest, I'm willing to continue pursuit of the debt, just to be a thorn in their side. I do not however, want to be accused of harassment, slander, or libel.

I like to think of myself as a fairly rational person though. So, if the consensus is to move on, I'll bite.

Thanks again!