Do I have a case and can I win?

[Andrewluz]

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

I have an unsecured promissory note from February 11, 2010 that was notarized in San Diego, Ca. The note states that the borrower would pay me back $2,000 with no interest. The payments were to be made March 15th, April 15th, May 15th and the final in June 15th in $500 amounts.

This is a standard agreement but there were a few clauses.

1. Lender agrees to give borrower the "Client List" from auto detail shop at the time document is signed. This was completed at time document was signed.

2. Lender agrees to try to renegotiate loan amount only if:

a. Client X doesn't use New Detail Shop's services once a month on average. New Detail Shop contacted client but didn't bother to follow up and schedule detail and Client X will vouch for this.

b. Client Y doesn't use New Detail Shop's services twice a week.
New Detail Shop didn't show up to detail site to do details.

3. Lender does not have to renegotiate contract if either Client X or Client Y stops using New Detail Shop's services because they are dissatisfies with the service. Client X and Client Y will say they were dissatisfied.

4. New Detail Shop receives no business whatsoever with the first 30 days of this contract being signed. Detail shop did receive business in the first month.

New Detail Shop owner basically said he wasn't satisfied with the list he was given and said he wouldn't pay. I tried to work it out with him on the phone and through text messages but he wouldn't pay me a lesser amount of money and would not cooperate in renegotiating with me at all. Do I have a case if I take him to small claims court in San Diego where the Promissory Note was signed and notarized? I now live in in Northern California but make trips to San Diego a few times per year. Thank you for your help.

 

[justalayman]

It's a shame when people take something so simple and turn it into a mess. Either you have a promissory note or you have a contract. You decide. Then you can figure out what you want and can do.

A promissory note is basically a loan with defined payments. What you have is closer to a contract that requires performance in exchange for the use of your money. Whether that requirement for performance has been met or not I have no idea from your hodge podge of requirements.

this makes no sense:

2. Lender agrees to try to negotiate loan amount only if:

you agree to try to negotiate the loan amount?

What does that mean?

but even if the performance requirements were not met, what does that do to the loan?

basically, if you believe the performance requirements have been met and the guy won't pay, sue him. The one thing I did notice was there was nothing that allowed the borrower to refuse to pay under any circumstances. The only requirement was for you to try to negotiate the loan. It sounds like you tried so sue him.

 

[Andrewluz]

Obviously it was the borrower who wanted the clauses put into this promissory note. I shouldn't have agreed to doing it this way but what is done is done. I know it seems complicated and that is why I am trying to decide whether it is worth going to court over. It has been nearly 2 years since I haven't been paid. Is there a time limit for taking something like this to court?

 

[LdiJ]

Obviously it was the borrower who wanted the clauses put into this promissory note. I shouldn't have agreed to doing it this way but what is done is done. I know it seems complicated and that is why I am trying to decide whether it is worth going to court over. It has been nearly 2 years since I haven't been paid. Is there a time limit for taking something like this to court?

There may be a statute of limitations, and in some states two years would be that statute of limitations.

You can certainly file a small claims court case and see what happens.