Freelance Artist wants payment

[chins01]

What is the name of your state? New York

I completed a project and delivered it to my client. Since the project was delievered I haven't heard back from the client - not one email or phone call. The invoice is past due and I am concerned that I will never see payment.

I am located in NY. I have a contract which has a clause in it stating that any legal issues will be arbitrated in Brooklyn, NY. However, the producer I worked with (who signed the contract) is in CA. The final client (the producers client) is based outside th US. I worked with another artist located in Georgia. I hired the other artist under the agreement that I would invoice our total amount and pay her when my client paid me. We did this because there was a quick turnaround and not enough time to get her a separate contract. The producer in LA was aware of the situation. I have email documentation proving that she is aware of this.

So here are my questions:
- Can this go to Small claims court in NY despite the parties involved being located everywhere?

- Would this just be an issue between myself and the producer in California since we are the people on the contract?

-Small claims court only handle amounts up to $5,000. The other artist and myself are owed more than that. Since the contract is under my name does this mean I have to go to county court instead because of the larger total? Can the artist in Georgia sue for a sum up to $5,000 and I sue separately for a sum up to $5,000 in small claims court since she was working under my contract?

-If I have to go to county court, would it now be in my best interested to get a lawyer?
-If I win in Small Claims court how do I gaurantee payment?

Thanks!

 

[Ohiogal]

If the contract says it will be ARBITRATED in Ny then that is where you go for ARBITRATION -- not small claims court.

 

[JETX]

Can this go to Small claims court in NY despite the parties involved being located everywhere?

Yes, you can sue them wherever you want.
HOWEVER, 'they' (whoever you are going to name, presumably the ONLY person you have a direct contractual relation with) can challenge your court jurisdiction. You can simply show your court the venue clause in your contract and the court SHOULD rule that it has jurisdiction.

Would this just be an issue between myself and the producer in California since we are the people on the contract?

Yes.

Small claims court only handle amounts up to $5,000. The other artist and myself are owed more than that.

Then you will have to either 'settle' for the limit or hire an attorney and pursue in a higher court.

Since the contract is under my name does this mean I have to go to county court instead because of the larger total?

See above.

Can the artist in Georgia sue for a sum up to $5,000 and I sue separately for a sum up to $5,000 in small claims court since she was working under my contract?

No.

If I have to go to county court, would it now be in my best interested to get a lawyer?

Yes.

If I win in Small Claims court how do I gaurantee payment?

Simple answer... you don't. The only way to 'guarantee' payment is to have it in the contract that the other party escrow funds... but then they probably wouldn't fall for that, would they??

 

[Ohiogal]

Jetx he says the contract states it must be ARBITRATED in NY. That is different than being able to take him to small claims court. Arbitration is a different animal so not only can they challenge jurisdiction in court but they would probably win if the contract states arbitration must be used.

 

[JETX]

Jetx he says the contract states it must be ARBITRATED in NY.

You're correct. Missed that.
However, a good argument could be made that the arbitration clause could support a venue claim.

 

[chins01]

Thanks so much for the responses - they are very helpful! I have a few more questions as I try to figure out what steps to take next:

1. If the contract states that any issues must be arbitrated in Brooklyn, NY - does that mean it automatically can't be a litigation case? Does this mean i can't take the case to small claims court?

2. In the future should my contracts say something vague like "must be handled in Brooklyn, NY" to keep it open to either arbitration or litigation?

2. I'm owed about $8,500. Would you say going to small claims (If that is an option?) to get $5,000 would make more sense because the legal fees will easily be in excess of the remaining amount - $3,500?

4. I have several colleagues who also haven't received payment from this client. We are not under the same contract and did not work on the same projects. The total sum she owes the three of us is roughly $30.000. Is there anything we can do collectively to cut down our overall legal expenses? I assume we have to put in three separate claims but I thought I'd ask.....

Thank you! Your help is greatly appreciated.