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lost a suit

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fiatx199

Guest
I recently lost a suit in small claims court, We had a verbal agreement with an advertiser as well as a basic contract agreement to make monthly payments for each monthly ad that had run. An employee of the publication had agreed verbally to drop off copies of the magazine to our office she has since quit. One day see stopped delivery of this magazine and called us to inform us that our articles did not run, so for the past three months, we insisted that the owner submit proof that the articles ran, so he sent a black and white copy of the ad. We suggested we wanted original copies of the three magazines cause he could have copied this from previous ads. He refused, so we refused to pay. A year later he had taken us to small claims court and the judgement went in his favor cause it was not written in the contract that he had to show proof of the ads running but it was our responsibility to find where the publication was distributed and to check it for ourselves. The judgement was for $2600.00 due in 21 days from the order. We don't have that kind of cash and the owner refuses to work out any payment arrangements, what if any alternatives due we have. we are from Michigan.
 


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JenniferH

Guest
I am not familiar with MI law, but if you don't pay within the time period and he doesn't want a payment plan, then you will have to wait and see. After the time is up he can purue legal collections. This may include garnishments, liens, bank levy. You must check your state statutes on what is legal, if any of the ones I listed are.

Is the judgment under your individual names or your business name?

I believe you can put in for a dispute or whatever they call it of the judgment, altho, you probably wouldn't win, since the judge made it clear as to what your responsibility was.

 

LegalBeagle

Senior Member
fiatx199 said:
I recently lost a suit in small claims court, We had a verbal agreement with an advertiser as well as a basic contract agreement to make monthly payments for each monthly ad that had run. An employee of the publication had agreed verbally to drop off copies of the magazine to our office she has since quit. One day see stopped delivery of this magazine and called us to inform us that our articles did not run, so for the past three months, we insisted that the owner submit proof that the articles ran, so he sent a black and white copy of the ad. We suggested we wanted original copies of the three magazines cause he could have copied this from previous ads. He refused, so we refused to pay. A year later he had taken us to small claims court and the judgement went in his favor cause it was not written in the contract that he had to show proof of the ads running but it was our responsibility to find where the publication was distributed and to check it for ourselves. The judgement was for $2600.00 due in 21 days from the order. We don't have that kind of cash and the owner refuses to work out any payment arrangements, what if any alternatives due we have. we are from Michigan.
Whenever you do no pay for something, you should set aside the money that should have been paid in case you end up having to pay it. That was your first mistake in this case. You had no proof that the ad DID NOT run. So you should have set the money aside.

You also have had a year to ensure you had the money in the event that you lost in court.

Now that a court has ordered you to pay, you have no choices but to pay. On day 22, you are in contempt and he can take you back to court, maybe add expenses, interest etc.. He can apply for all of the things that Jen stated as well as report you to the credit agencies and even a credit collection company.

 
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fiatx199

Guest
I understand what you are both saying, and we did have plenty of cash set aside, but since then the business had gone bad and we are now in the middle of a bankruptcy, our attorney advised us to pay off as many of our creditors as possible, this is where the money has gone. Now we are in the latter stages of closing out this bankruptcy and we are not wanting to ad this advertiser to the list of creditors. so this is why we are so hoping he works out a three month payment plan with us... if not we have no way of paying him in one lump sum and would ad this debt to our claim.
 
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JenniferH

Guest
You know what: if you can add this guy to your list of creditors, then by all means do it. Sounds like this guy is not a nice one. The only thing you can do is say, if you don't want to make a payment plan I will add you to my bankruptcy. If he wants his money he will settle!
 

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