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New Owners Don't Want to Pay

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kinimcd

Junior Member
What is the name of your state (only U.S. law)? New Jersey

Our company installed a business telephone system, and did service work at a spa in New York City, totalling $2,400.

While trying to collect the money due, we were informed that the spa was just sold. The new owners are only offering 2 payment options.

1) 20% lump sum, and the account would then be considered paid in full OR

2) $100 a month for the next 2 years. (spa could very easily fail within that time)

How should we handle this?

Does the new owner assume all liability? (They are using the phone system we installed.)

Should we pursue Small Claims Court?
 


Dandy Don

Senior Member
Can't you remove the system that you installed according to the contract you had with the previous owner?

Why aren't you suing the previous owner in small claims court for the amount that you are due?
 

kinimcd

Junior Member
The original cost of the sytem and installation was over $10,000. The $2,400 is additional service work performed for addtional changes etc.

Tracking down and finding info on the new owners would be virtually impossible.

Aren't the new owners responsible?
 

Zigner

Senior Member, Non-Attorney
The original cost of the sytem and installation was over $10,000. The $2,400 is additional service work performed for addtional changes etc.

Tracking down and finding info on the new owners would be virtually impossible.

Aren't the new owners responsible?
The new owners didn't contract with you...
 

HomeGuru

Senior Member
The original cost of the sytem and installation was over $10,000. The $2,400 is additional service work performed for addtional changes etc.

Tracking down and finding info on the new owners would be virtually impossible.


**A: that's crazy since you installed the phone system.
Use the phone.

########
Aren't the new owners responsible?


**A; why should they be. They were never your customer.
 

kinimcd

Junior Member
There is no physical contract at this time (once sytem was installed), as all subsequent work is performed and billed upon completion of service.

Doesn't the new owner assume outstanding bills the old owner inccurred as a necessity to stay in business? (you need a phone)

We are a small business trying to keep our heads above water, and this really hurts.
 

HomeGuru

Senior Member
There is no physical contract at this time (once sytem was installed), as all subsequent work is performed and billed upon completion of service.

Doesn't the new owner assume outstanding bills the old owner inccurred as a necessity to stay in business? (you need a phone)

We are a small business trying to keep our heads above water, and this really hurts.
**A: if no one pays. make them hurt. Go in and remove the $2400 in additional changes.
 

Dandy Don

Senior Member
Go to the New Jersey Secretary of State's website to look up the former business's name and find the name and address of the agent for service of process and that is the person you would mail documents to relating to the small claims lawsuit. If the information is not there you should be able to contact the city or county government agency that registers businesses and get information about the company owners from there. And why would the former owners be difficult to find--do you have knowledge that they have moved out of the area? A private investigator could do a skip trace on them to try to locate their current whereabouts for about $500 or less but maybe you don't have the funds to do that at this time.

You may be thinking about the concept of a new business perhaps assuming responsibility for the former companies debts when the new company acquired ownership, but I am not familiar with New Jersey law so you will have to talk to a business law attorney in New Jersey about that to see if it is true or not. Don't wait for a New Jersey attorney to respond here because there may not be any New Jersey attorneys reading this message board.
 

kinimcd

Junior Member
I can't thank you enough! I now know where I stand legally, and can start the process of finding and collecting from the OLD owners.
 

HomeGuru

Senior Member
I can't thank you enough! I now know where I stand legally, and can start the process of finding and collecting from the OLD owners.
**A: dig up the contract and read the fine print. There should be remedies for failure to pay for good and services.
 

kinimcd

Junior Member
As per your suggestion, I found the name of the Registered Agent in NY. (We are in NJ, service done in NY.)

Should I file a claim in Small Claims Court NY and forward to the registered agent?
 

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