Foreign company sue supplier in California?

[jfffre]

Hi this is the first time my company doing business with a company from United States.

This supplier recieved our deposit and making up crazy stories for more than half year before we found out.

After we found out the lies, the supplier promised to give the money back on a certain date e.g. November 10th.

We have no trust in that at all. So we need a backup plan.
1. Sue the supplier. Lawyer cost? Any recommendation?
2. Other better ways can get the monies back?

Thanks!
John

 

[FlyingRon]

A lawyer is your best answer, unless you want to come to California for a protracted period this is not a self-help situation.
We don't do lawyer referalls here. There are links all over these pages to find an attorney.

 

[quincy]

Hi this is the first time my company doing business with a company from United States.

This supplier recieved our deposit and making up crazy stories for more than half year before we found out.

After we found out the lies, the supplier promised to give the money back on a certain date e.g. November 10th.

We have no trust in that at all. So we need a backup plan.
1. Sue the supplier. Lawyer cost? Any recommendation?
2. Other better ways can get the monies back?

Thanks!
John

What country are you posting from, John?

What you are able to do depends in large part on the contract you formed with the company in California.

You can have an attorney in your part of the world review the terms of the contract to determine better what your options might be, should the company not live up to the promise made.

Suing the company in California (if that is the state where the company is based) could potentially be one option. Lawyer costs vary widely so there is no way to tell you what you will have to pay for one to represent you.

A demand letter sent from an attorney to the company is potentially one other option that could be considered prior to taking legal action.

 

[jfffre]

A lawyer is your best answer, unless you want to come to California for a protracted period this is not a self-help situation.
We don't do lawyer referalls here. There are links all over these pages to find an attorney.

Thank you for the advice!

 

[jfffre]

What country are you posting from, John?

What you are able to do depends in large part on the contract you formed with the company in California.

You can have an attorney in your part of the world review the terms of the contract to determine better what your options might be, should the company not live up to the promise made.

Suing the company in California (if that is the state where the company is based) could potentially be one option. Lawyer costs vary widely so there is no way to tell you what you will have to pay for one to represent you.

A demand letter sent from an attorney to the company is potentially one other option that could be considered prior to taking legal action.

Thanks for your advice. I am from South Korea.

 

[quincy]

Thanks for your advice. I am from South Korea.

Thank you for providing the name of your country, jfffre.

Does the company in California have an office or an agent in South Korea? Probably not, but this is something you might want to check out. It could make taking any legal action against the California company easier (if a legal action winds up being necessary).

Otherwise, you will need to file suit against the company in the U.S. for the lawsuit to be effective. The suit will be based on US laws and not on the laws of South Korea.

Lawsuits involving parties residing in different countries tend to be very expensive legal actions to pursue. With luck, however, the California company will live up to its promise to return to you your money (or to send you the goods ordered) on or before the date they said they would.

Good luck.

 

[Zigner]

How much money was paid to the company?

 

[jfffre]

Thank you for providing the name of your country, jfffre.

Does the company in California have an office or an agent in South Korea? Probably not, but this is something you might want to check out. It could make taking any legal action against the California company easier (if a legal action winds up being necessary).

Otherwise, you will need to file suit against the company in the U.S. for the lawsuit to be effective. The suit will be based on US laws and not on the laws of South Korea.

Lawsuits involving parties residing in different countries tend to be very expensive legal actions to pursue. With luck, however, the California company will live up to its promise to return to you your money (or to send you the goods ordered) on or before the date they said they would.

Good luck.

Hi quincy, thanks. No branch here.

BTW, in U.S. law, what kind of damage can we put on the owner of that company if we win the case? Can that ruin his credit?

 

[Zigner]

Hi quincy, thanks. No branch here.

BTW, in U.S. law, what kind of damage can we put on the owner of that company if we win the case? Can that ruin his credit?

Probably not. You are most likely suing the company, not the person.

 

[quincy]

Hi quincy, thanks. No branch here.

BTW, in U.S. law, what kind of damage can we put on the owner of that company if we win the case? Can that ruin his credit?

If you were to win a legal action against the company for failing to deliver on their promise of goods in exchange for the money you sent, you could be awarded the money owed plus court costs, fees, possibly attorney fees. It can depend on the terms of the contract you entered into and all facts.

The answer to the question Zigner asked can be a factor, as well - not only in possible damages awarded but also in whether the company's credit could be ruined. And the amount of money involved can be a factor in deciding whether a legal action is worth the costs of pursuing.

Regardless of the eventual outcome, win or lose, money must be spent to get to this final decision. Some companies can handle the expense of a protracted lawsuit and others can't.

 

[jfffre]

How much money was paid to the company?

We paid 105,000 U.S. dollars.

 

[quincy]

We paid 105,000 U.S. dollars.

That is a sizeable amount of money. If it were a small sum of money, taking legal action against a company in another country might not be justified from a cost perspective.

You could review everything with an attorney in your area, or you might find it helpful to locate an attorney in the area of California where the company is located to discuss your options. You can get a better feel for the costs involved in suing the company. The attorney could also draft and send the demand letter mentioned earlier, if this is advised by the attorney(s) you contact.

Good luck, jfffre.