does court-ordered payment trump contractual obligations?

What is the name of your state? NY

Hello...

I've just sued a company that owes over $1000 for work completed. The CEO has called me and asked me to dismiss it in return for around 22% down and a written promise to pay 26% each month following. They are crying poor and promise new financing will set them aright shortly (this has been the ongoing song over there; the evidence suggests they are financially strapped; as for the rescue financing, who knows?). They also claim that if they reneg, I can always refile later. My inclination is to turn the offer down, even though I have to travel from Los Angeles to NY to present my case. While they claim that since they'll just cry poor to the judge and ask for a payment schedule anyway, I'll save time and money by taking the deal. I'm not so sure. My questions are 1) is it likely that the court would allow installments? 2) do court-ordered payments have greater weight that a simple written contract between the parties? and 3) if the company goes under, does a judgement from the court put me ahead of other creditors? (for the time being, they are stil lin business, so presumably some parties -- the electric company, gas company, and various day to day vendors -- are getting paid.

Any legal minds want to take a crack at this?

PS I am pretty confident I will prevail in court since I have a contract, proof of completion of service, and numerous emails where company representatives -- and even the CEO -- acknowledge I am owed the money.

What date is the hearing set ?

What you do is entirely up to you.
I wouldn't dismiss until I had the promise in writing , and the initial amount
is cleared and cashed .

I would also reply that I'd want at least 50 percent down, if not more , and the rest paid in 90 days in equal installments .

Any new written and signed promises are binding .

If you were to go to Court and get a Judgment , then you would have to take collection measures if the debtor didn't pay .

eyefull said:

My questions are 1) is it likely that the court would allow installments?

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It is possible, but not likely. The problem is that a lot of people think that the court is somehow involved in the payment process. They aren't. The court simply listens to the facts and decides who wins. It is then up to the winner (judgment creditor) to try to collect from the loser (judgment debtor).

do court-ordered payments have greater weight that a simple written contract between the parties?

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Yes.

if the company goes under, does a judgement from the court put me ahead of other creditors?

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Nope. As an unsecured creditor you are right in line with all the others.

Any legal minds want to take a crack at this?

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Yep, accept their payment promise. Have them put it in writing in the form of an 'Agreed Judgment'. Simply, if they breach the agreement, you get to bring the 'Agreed Judgment' to the court and you win.... without ANY argument or challenge from them.

I am pretty confident I will prevail in court since I have a contract, proof of completion of service, and numerous emails where company representatives -- and even the CEO -- acknowledge I am owed the money.

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And the person that tells me that they have a 'sure thing' in court is telling me that they are ignorant of the law. Simply, there is no such thing as a sure thing!! Further, are you really willing to risk the expense of travel, time, etc. on this. Take the sure promise to pay (as noted above) and dismiss the current action 'without prejudice'.

you are flying from L.A. to NY for a $1000 debt? How much did you pay for the plane ticket?