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having someone file suit on your behalf

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max power

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

I own a small business & have several delinquent accounts across the country. Would I be able to hire a 1099 employee & have them file a small claims suit against the debtors in their jurisdiction? Also, could I have them show up for the court date? It's pretty cut & dry as I have a contract with these debtors for service rendered & most will not show up.
 


justalayman

Senior Member
No.

Depending on the jurisdiction and your corporate structure you may not be able to file suit in court on behalf of your company but unless the guy you hire is a lawyer he cannot represent you or your company as a simple emoyee, which as you describe it he doesn't even met that level of relationship as an independent contractor.
 

FlyingRon

Senior Member
First off, there's no such thing as a 1099 employee. If he is an employee, you must handle him as an employee (W-2, you pay your share of the social security, UI etc...).

Second, in general there's a word for someone who does legal acts for another. It's called an attorney and there are strict requirements on what one has to do to call oneself an attorney.

If you are a sole proprietor, most states will require either you or your lawyer appear in court.
If you are a corporation or a partner, some states may allow a partner or an OFFICER of the company to appear, but others (like your state of NJ) requires an attorney.

Some states preclude corporations from filing small claims actions at all. Some cap the number of such filings that can be made.

As an alternative for having an attorney "file" the case, many states permit filing by mail. You'll still have to appear for the actual suit, but you can save a little money.

Much as I dislike debt collectors, many who are the scum of the earth, you may find it easier to let them handle your collections.
 

latigo

Senior Member
What is the name of your state (only U.S. law)? NJ

I own a small business & have several delinquent accounts across the country. Would I be able to hire a 1099 employee & have them file a small claims suit against the debtors in their jurisdiction? Also, could I have them show up for the court date? It's pretty cut & dry as I have a contract with these debtors for service rendered & most will not show up.
Hiring a surrogate is not going to make it cut and dry as all causes of action must be prosecuted in name of the real party in interest. Your employee might be able to do the filing in your name or the name of the legal entity under which you conduct business, but they cannot represent either in court.

Instead, consult with your attorney about the effects that New Jersey's Long Arm Statute may have on your claims against nonresident debtors.
 

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