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small claims filling

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Gary Haskins

Guest
What is the name of your state? California
I am an independent contractor who sells frozen food products for a food wholesaler. We sold $8500.00 worth of product to a company in Las Vegas that closed its doors,not bankrupt,just closed down and claimed they had no money to pay creditors. This company was owned by the same person that has a company in Los Angeles,and he refuses to pay the invoice because he says his company is not responsible for his other companies debts. My question is: (1) Is he correct about his liability? (2) I want to sue him in small claims court but I believe the maximum award is $6500.00. My employer does all the billing and receiving. Can we each file a suit for 1/2 the $8500.00 to go around the $6500.00 maximum? I am responsible for 50% of any bad debts even though the invoice is in my employers name. Your help is appreciated.
 


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resipsa

Guest
Gary Haskins said:
What is the name of your state? California
I am an independent contractor who sells frozen food products for a food wholesaler. We sold $8500.00 worth of product to a company in Las Vegas that closed its doors,not bankrupt,just closed down and claimed they had no money to pay creditors. This company was owned by the same person that has a company in Los Angeles,and he refuses to pay the invoice because he says his company is not responsible for his other companies debts. My question is: (1) Is he correct about his liability? (2) I want to sue him in small claims court but I believe the maximum award is $6500.00. My employer does all the billing and receiving. Can we each file a suit for 1/2 the $8500.00 to go around the $6500.00 maximum? I am responsible for 50% of any bad debts even though the invoice is in my employers name. Your help is appreciated.
The maximum recovery in small claims court is $5,000 if you have not filed more than twice in one calendar year. If you have, then that amount is reduced to $2,500.

What does your contract with the employer state? Any indemnification clauses? Arbitraction clauses?

Of what significance is the Los Angeles company? You did business with the LV branch? To get jurisdiction over them in XX county CA, under breach of contract, the contract either has to be executed, performed, or breached in county CA.
You cannot file a case in XX county solely because you live there or it's convenient for you.

Since you are an independent contractor, you can sue separately from your employer....since you two are different entities.

Good Luck..
 

JETX

Senior Member
Res said, "Since you are an independent contractor, you can sue separately from your employer....since you two are different entities."

Not correct. The 'independent contractor' is working as an agent of the wholesaler, thereby the debt cannot be 'split' to get under the courts jurisdictional limit.
 

djohnson

Senior Member
I agree you cannot file separately. I would also find out the company status of both companies , ie: incorporated, llc etc.

That will help you know what you can do to the individual that owns the other store also.
 

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