Closed business, owners live out of state.

[BRonhaar]

I am, and business is in WA, owners live on the east coast.

Hi there, I paid a hold fee in February to hold a spot for childcare, business closes in July, owners has not replied to all 3 of my attempts at contact (I hear from other parents, they are difficult to get ahold of, communicate with, work with, etc..). My child had been attending Sept. 2018- Feb. 2019, when we essentially paused care (paying a fee), intending to return mid-Aug.

My confusion is:
1. The business closed, can I continue to file in small claims?
2. Business and service was provided in WA, BUT the owners of business live in another state. Do I need to take this and file in their state?

3. If I need to speak in person with a lawyer, where do I begin? What type of law is this issue?

Thank you all for any clarification, insight, advice you might give. I am way out of my element here.

 

[quincy]

I am, and business is in WA, owners live on the east coast.

Hi there, I paid a hold fee in February to hold a spot for childcare, business closes in July, owners has not replied to all 3 of my attempts at contact (I hear from other parents, they are difficult to get ahold of, communicate with, work with, etc..). My child had been attending Sept. 2018- Feb. 2019, when we essentially paused care (paying a fee), intending to return mid-Aug.

My confusion is:
1. The business closed, can I continue to file in small claims?
2. Business and service was provided in WA, BUT the owners of business live in another state. Do I need to take this and file in their state?

3. If I need to speak in person with a lawyer, where do I begin? What type of law is this issue?

Thank you all for any clarification, insight, advice you might give. I am way out of my element here.

How much money is involved? Was the hold-fee nonrefundable?

You potentially can sue the owners for the return of your hold-fee in either Washington, where they operate(d) a business, or in the other state, where the owners live - depending on the terms of the contract you signed and what it says about refunds.

In what state do the owners reside?

Have the owners filed for bankruptcy?

 

[Zigner]

Don't forget that, even if you win, you will still need to collect. It might be more logical to simply write this off.

 

[Taxing Matters]

My confusion is:
1. The business closed, can I continue to file in small claims?

How was the business organized (e.g. a corporation, LLC, etc)? Has it been officially dissolved with the state and if so, when? And when did the business close its doors?

I assume you want a refund of the hold fee you paid. How much is it?

2. Business and service was provided in WA, BUT the owners of business live in another state. Do I need to take this and file in their state?

You might be able to sue in Washington state small claims court (subject to the answers to the questions I asked above) but there is a practical issue here, too. Unless the business (or the owners, if the business was not organized as a corporation, LLC, LLP, or LLLP) have assets in the state even if you win a judgment in Washington you still must go to where the business (or owners) have assets to domesticate the judgment there and enforce it. Depending on how much is at issue here the cost to do that may exceed what you could get in the judgment.

3. If I need to speak in person with a lawyer, where do I begin? What type of law is this issue?

This is a simple contract dispute. Any civil litigation lawyer can answer your questions about it.

 

[quincy]

You will want to find out if the owners have filed for bankruptcy protection.