File in GA or CO? Do I need to appear

[Tibby]

I live in Colorado.
Took a contract job from a company located in Georgia to Install a Digital Touchscreen for a Doctor's office out in Colorado. Approx 150 miles away from where i live.
It's been 30 days ago. The company now is telling me that they are can not pay me, because of the COVID-19 issue and they have financial difficulties. They can't even tell a date when they are going to be able to pay me.
I am afraid they are going to file for Bankruptcy and I'll loose my money.
I would like to file at small claims court to get paid for my services before they go out from business.

My question: Do I need to file in Georgia, where the company located?
Do I need to file in Denver, where I live? ( I was told not here)
or Do I need to file at the county where I have completed the work?

Someone told me I will have to file at the county where the company who gave me the work is actually located, So that will be Georgia.
I have seen I can e-file, but do I have to appear in person at court? That will be a travel charge that I can also add to my case as an expense?
Thank you!

 

[quincy]

You will probably want to file in Georgia unless the company has a registered agent in Colorado.

http://consumer.georgia.gov/consumer-topics/magistrate-court

Even after you get a judgment, the company can still file for bankruptcy.

 

[Taxing Matters]

I live in Colorado.
Someone told me I will have to file at the county where the company who gave me the work is actually located, So that will be Georgia.
I have seen I can e-file, but do I have to appear in person at court? That will be a travel charge that I can also add to my case as an expense?
Thank you!

Unfortunately suing in Colorado small claims court is not an option because the Colorado small claims court rules effectively limit you to suing defendants who are located within the state. As a result, you'd have to sue in Georgia. In at least most states your travel expenses are not costs that you can add to your claim unless the contract you have with the company allows for adding those kinds of costs. So unless GA has an unusual rule on this, you'd not get the travel money back. I don't know whether the small claims court in the county where the company is located would allow you to appear by video or phone. I think that's rather unlikely, but you can contact the clerk for that court and ask what options they might have.

 

[Taxing Matters]

Even after you get a judgment, the company can still file for bankruptcy.

quincy is right on that, but let me fill in a bit more detail. If the company is a corporation or LLC it can't get a discharge in a Chapter 7 bankruptcy like a person can. As a result, a Chapter 7 bankruptcy is simply an orderly liquidation of the company. Most companies in that situation don't bother with bankruptcy; they just liquidate under their state's liquidation rules and close up shop. For the creditors, the result is much the same either way, especially if the company doesn't have much in assets to begin with.

The company might do a Chapter 11 bankruptcy, which is a reorganization of the business, if it thinks that by restructuring its debts it can survive. In that case your chances to get paid may be better, assuming the reorganization is successful.

 

[quincy]

It is also possible that the business will survive the virus, be eligible for a small business loan and be able to pay you later as they indicated to you they would.

This will require patience on your part, Tibby. Several businesses and their employees are suffering right now. You have two years to file suit.

 

[adjusterjack]

Colorado's long arm statute allows for a lawsuit to be brought within the state if the company transacts "any business" within the state. Which it apparently did.

http://www.lrcvaw.org/laws/colongarm.pdf

Tibby could do that in county or district court and then domesticate the judgment in Georgia.

Tibby, how much money are you owed?

 

[Taxing Matters]

Colorado's long arm statute allows for a lawsuit to be brought within the state if the company transacts "any business" within the state. Which it apparently did.

http://www.lrcvaw.org/laws/colongarm.pdf

Tibby could do that in county or district court and then domesticate the judgment in Georgia.

Tibby, how much money are you owed?

Yes, but it could not be done in small claims court in Colorado. It could be done in county court, but the proceedings there are more complex. And of course there is the issue of getting good service on the out-of-state defendant.

 

[quincy]

Yes, but it could not be done in small claims court in Colorado. It could be done in county court, but the proceedings there are more complex. And of course there is the issue of getting good service on the out-of-state defendant.

If the company has a registered agent in Colorado, the agent would accept service.

There are a few reasons why it could be better to sue in Georgia, including overall cost of the suit despite the potential travel costs.

 

[Taxing Matters]

If the company has a registered agent in Colorado, the agent would accept service.

True, but then I would expect in that case it would likely have a location in the state, too, in which case small claims court in Colorado would be an option.

There are a few reasons why it could be better to sue in Georgia, including overall cost of the suit despite the potential travel costs.

Yes, just based on what we know so far, that may indeed be the better option.

 

[quincy]

Tibby would be smart to have an attorney in his area review his contract with the Georgia company first to go over the specifics, this if what he is owed is worth that cost.

Otherwise, I think he should plan on filing a small claims suit in Georgia at some point in time if he is unable to collect what he is owed.

With some luck, Tibby should receive a relief check from the government soon to make the missing paycheck a little easier to bear.