File small claims against person who has defaulted on a loan

[luckychrms75]

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

My now ex boyfriend moved out of my house in April. He had asked me if I could make two truck payments for him totalling $980 (+ a $5 processing fee for doing it over the phone) so that his truck would not get repossessed (that should have been my first 'red flag'). I made the payment with the agreement, both verbal and written/text message that this was not a gift, it was a loan and that he was to start paying me within 4 weeks of me making the payments. He agreed and promised to start paying. Long story short, after he gave me the run around about setting up $50/week to be auto drafted from his account into an account that I set up soley for this purpose. That started on or about May 18th. The truck payments were made on April 24th. As of today, he still has not paid anything, nor will he return phone calls, messages, etc. I've basically come to terms with the fact that I will never get the $$ back but that's not the point. The point is that I made the payments in good faith and he agreed to the terms and has now gone back on that.

Here's where it gets a little tricky. He moved out on 4/12/14, back to AZ for the purposes of temporary work there. The intention was for him to come back after he did the work there and saved some $$. I know that his truck is still registered to my address in NC. I'm pretty sure his license is still a NC one with my address as well. He did switch from PNC bank to BOA (but they are everywhere). His business account is at Wells Fargo in NC and his Business LLC is also registered to my home address in Wake County, NC. Based on that information, can I file in NC OR do I have to file in Tucson as that is where he is today (and was at the time I made the payment)? What determines his 'domicile'?

 

[TigerD]

Don't throw good money after bad. You aren't likely to ever get paid back.

DC

 

[Zigner]

The loan was made in Arizona. You would need to file there.

 

[latigo]

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

My now ex boyfriend moved out of my house in April. He had asked me if I could make two truck payments for him totalling $980 (+ a $5 processing fee for doing it over the phone) so that his truck would not get repossessed (that should have been my first 'red flag'). I made the payment with the agreement, both verbal and written/text message that this was not a gift, it was a loan and that he was to start paying me within 4 weeks of me making the payments. He agreed and promised to start paying. Long story short, after he gave me the run around about setting up $50/week to be auto drafted from his account into an account that I set up soley for this purpose. That started on or about May 18th. The truck payments were made on April 24th. As of today, he still has not paid anything, nor will he return phone calls, messages, etc. I've basically come to terms with the fact that I will never get the $$ back but that's not the point. The point is that I made the payments in good faith and he agreed to the terms and has now gone back on that.

Here's where it gets a little tricky. He moved out on 4/12/14, back to AZ for the purposes of temporary work there. The intention was for him to come back after he did the work there and saved some $$. I know that his truck is still registered to my address in NC. I'm pretty sure his license is still a NC one with my address as well. He did switch from PNC bank to BOA (but they are everywhere). His business account is at Wells Fargo in NC and his Business LLC is also registered to my home address in Wake County, NC. Based on that information, can I file in NC OR do I have to file in Tucson as that is where he is today (and was at the time I made the payment)? What determines his 'domicile'?

Please forget about "domicile" and where he "maintains his business and or business accounts", etc., as they have nothing to do with the issue of where he can be effectively sued.

If you are committed to let you emotions override practicalities and take the time and trouble to sue the jerk ending up with a judgment whose worth is questionable, then you will need to file your lawsuit in a state court that can obtain or exercise personal jurisdiction over him.

But your are not so limited as to the proper forum (state court) as has been suggested.

Your claim is what is know as a "transitory cause of action". Meaning your lawsuit can be filed in any state court where personal service can be made upon him; Arizona, Hawaii, or any of the 50 states.

SO, If you wish to file in Arizona and can get him served with process while he is physically present within that state, fine as Arizona would then have proper jurisdiction to issue a judgment against him. But for obvious reasons it would be most impractical.

Another option would be to file in North Carolina invoking the state's Long Arm Statute. By that I mean that if the loan agreement was made and/or to be repaid in North Carolina, then a court in that state would have personal jurisdiction under the state's Long Arm Statute whether or not he can be physically served with process in N. C. (See: N.C. Gen. Stat. § 1-75.4 (5) *

But even if you were to sue him in N. C. under the state's Long Arm statute, it would still be necessary to have him personally served with process. However, obtaining service upon a non resident is a complicated, timely and often expenses procedure. And one most likely beyond your capability.
__________________


[*]"North Carolina Long-Arm Statute
N.C. Gen. Stat. § 1-75.4
§ 1-75.4. Personal jurisdiction, grounds for generally
A court of this State having jurisdiction of the subject matter has jurisdiction over a person served in an action pursuant to Rule 4(j), Rule 4(j1), or Rule 4(j3) of the Rules of Civil Procedure under any of the following circumstances:

* * * *

(5) Local Services, Goods or Contracts. -- In any action which:
a. Arises out of a promise, made anywhere to the plaintiff or to some third party for the plaintiff's benefit, by the defendant to perform services within this State . . .

 

[luckychrms75]

Thank you all for the info.

I'm obviously not going to file anything since it would have to be done in Tucson and not in Raleigh. If I were able to file in NC for $100, I would but I'm not going to spend that much time, money or energy on something that I already know he will never pay. It was more about the principal of the matter. You make good on your 'promises'. Either way, he has a whole other thing coming his way since he stopped paying the IRS payments for his 2011 and 2012 taxes owed AND he never filed a return for him or his business for 2013. Everything will catch up one way or another.
Thanks again!

 

[latigo]

Thank you all for the info.

I'm obviously not going to file anything since it would have to be done in Tucson and not in Raleigh. If I were able to file in NC for $100, I would but I'm not going to spend that much time, money or energy on something that I already know he will never pay. It was more about the principal of the matter. You make good on your 'promises'. Either way, he has a whole other thing coming his way since he stopped paying the IRS payments for his 2011 and 2012 taxes owed AND he never filed a return for him or his business for 2013. Everything will catch up one way or another.
Thanks again!

ONCE AGAIN!

You are NOT limited to filing the lawsuit in the state of the defendant's residence!!!

You can filed it in the state where he lives, OR you can file it in Raleigh, North Carolina under the purview of North Carolina's Long Arm Statute!

 

[luckychrms75]

File small claims against eprson who has defaulted on a loan

ONCE AGAIN!

You are NOT limited to filing the lawsuit in the state of the defendant's residence!!!

You can filed it in the state where he lives, OR you can file it in Raleigh, North Carolina under the purview of North Carolina's Long Arm Statute!

Understood loud and clear. Thank you for providing that information.

 

[Dave1952]

The difficulty that you face is collecting. If you go to small claims court in Raleigh you'll likely be out around $100 in court costs, and your time, and parking, et c.. After all of that you'll have a judgment. Now it's up to you to collect the judgement in NC. He's in AZ. Unless you know he's coming back to NC or the money amount is quite large, going to court will be a waste of time and money. Sorry.

 

[luckychrms75]

The difficulty that you face is collecting. If you go to small claims court in Raleigh you'll likely be out around $100 in court costs, and your time, and parking, et c.. After all of that you'll have a judgment. Now it's up to you to collect the judgement in NC. He's in AZ. Unless you know he's coming back to NC or the money amount is quite large, going to court will be a waste of time and money. Sorry.

I agree. As I stated before, even if I did win in court, I don't expect to ever collect the money. He is excellent at gaming all the "systems". For me it's about the principal of the matter. If the most it would cost me was $100 or so, I'm would be willing to pay that as in the grand scheme of things, that won't make or break me.

I will let it go. Just knowing thAt at 33, he had to go crawling back to mommy and daddy cause he had no money and no place to go, I guess that is punishment enough for anyone. I still have my home, my car, my savings and my life back. Lesson learned, albeit a hard one!