Won a small claims against a huge corporation in MO

[Zigner]

First, this forum is fortunate to have an attorney-member from Missouri who may stop by to add some words of wisdom. Before becoming an attorney, “Tiger D” was a debt collector. I will send Tiger D a message to see if he is available to respond.


I believe that donalpm is in the process of filling out a writ of garnishment form, hence his questions on what is necessary for inclusion.

If he does not have the financial information for his judgment-debtor that would allow for a writ to be served, he will want a debtor exam to disclose the locations of the debtor’s assets.

OP claims to know what bank the corporation banks at, but it's entirely possible that the accounts are not held in such a way that will allow for a bank levy to be successful.

 

[quincy]

OP claims to know what bank the corporation banks at, but it's entirely possible that the accounts are not held in such a way that will allow for a bank levy to be successful.

Right. Knowing what bank a debtor uses is generally not all that is needed, which is why a debtor’s exam can be important. The debtor would need to disclose account information.

 

[donnalpm]

Pardon me, but what are we expected to make of "pretty much by default"? Such iffy verbiage is not recommended in this milieu. Lawyers relying on suppositions often find themselves looking for an honest livelihood!

So, was the judgment debtor found to be in default for failure to appear or not? Because if in default, then you don't need to serve the judgment debtor with another blessed thing. (See Rule 43.01 of the Missouri Rules of Civil Procedure) *

And even if the defendant did appear in the lawsuit there, is nothing in the Rules requiring that you as the judgment creditor serve or notify of any actions taken supplemental to your judgment. That is a notice of the issuance of a writ of execution or a preemptive notice of the issuance of a writ of garnishment.

But getting back to the essentials, why would you want to incur the hassle of a lengthy, paper eating and time consuming bank account garnishment process?

If you know where this "big tech corporation" maintains offices in your state, why not simply hand the local sheriff the writ of execution? That together with written instructions to pay the debtor a visit seizing possession of and levying against such visible tangible assets of the debtor as needed to satisfy the judgment? I mean like desks, chairs, computers, file cabinets, keys to the executive washroom, and so on.

If your judgment is watertight and you do the above, you can expect payment in full to arrive in the mail.

[*] " . . . no service (of documents supplemental to a default judgment - my paraphrasing) need be made on parties in default for failure to appear except that pleadings asserting new or additional claims for relief against them shall be served upon them in the manner provided for service of summons".

Good luck

Am I allowed to name the corporation in these forums?

The corporation answered on the last possible weekday to the suit, stating that I was taking them to court in the wrong venue and wanted it moved to CA per their 'browsewrap' aggreement. (For the record, browsewraps aren't as strong as clickwraps....I did a lot of research on this....it can be tedious as you all know.) The lawyer further requested a continuance due to 'travel restrictions because of covid' if the venue change wasn't agreeable. Given that courts all over, including in CA are pretty much open and airlines are flying, the judge didn't find that a reasonable excuse for not appearing to argue their merits.

Furthermore, and I'm speculating here, I don't think the judge liked the last minute response that the lawyer that fedex'd the answer to the suit to me (electronically to the court I assume). She noted that the lawyer in the letter is not licensed to practice law in our state as well. I was quite surprised that they didn't hire a local attorney to appear on their behalf, but they didn't. They had a month or so to do so. The judge gave me the default judgement, as they weren't here to argue their merits to change the venue. (I was ready for that arguement too.). She ALMOST gave them the continuance, but felt that there was no reason for them to not have a lawyer in the court room on their behalf. So that explains the 'Pretty much by default' bit.

I've waited for more than the appeals time to pass...and so now I'm taking action. I brought the writ of execution up to the county clerk's office. I had to add the address of the debtor. As I was about to walk away to modify the papers, she handed me the interrogatories of Garnishee papers. That made me think it's required.

As for their assets, their banking institutions they use are several, but one for sure, since I've received funds from them in the past via ACH, is BofA. While the corporation doesn't maintain actual offices in every state, the corporation sends and does business in every state of the union I believe. They are incorporated in my state (as well as most others I'd assume). There is a listed registered agent, who was served with the lawsuit back in July. I know I took a risk suing here given their browsewrap requirements of using courts in their benificial court system in CA. I won and now I'm on the next step of collecting. $5k to this corporation is paltry/peanuts. With their huge legal departments, I was shocked no one appeared in court on their behalf. Shocked.

For the record, this was just one suit...I would like to go after them in a class action next, cause they have NOT fixed the problem that started this whole thing.

Thanks for saying I do NOT have to give them notice of execution. I'm hoping the sheriff can just go to the local BofA and ask for the funds.

 

[donnalpm]

Right. Knowing what bank a debtor uses is generally not all that is needed, which is why a debtor’s exam can be important. The debtor would need to disclose account information.

I read that it's better to go without the specific account number, as then the writ will apply to JUST THAT account, even if the company has several accounts at that bank.

 

[quincy]

I read that it's better to go without the specific account number, as then the writ will apply to JUST THAT account, even if the company has several accounts at that bank.

Interesting.

By the way, do NOT name the corporation. Real names should not be used on this forum.

Here is a link to (2008) information that you should read through on garnishment:

https://corporate.findlaw.com/litigation-disputes/missouri-small-claims-court-handbook.html

I suggest you wait for a response from forum member TigerD. He has experience with collecting on debts in your state.

 

[zddoodah]

For the record, this was just one suit...I would like to go after them in a class action next, cause they have NOT fixed the problem that started this whole thing.

For the record? Any future lawsuits arising out of the same facts would be barred by something called res judicata (aka claim preclusion). Also, that wouldn't be an appropriate use of the class action tool.

 

[quincy]

For the record? Any future lawsuits arising out of the same facts would be barred by something called res judicata (aka claim preclusion). Also, that wouldn't be an appropriate use of the class action tool.

What do you mean by the bolded portion above?

 

[donnalpm]

For the record? Any future lawsuits arising out of the same facts would be barred by something called res judicata (aka claim preclusion). Also, that wouldn't be an appropriate use of the class action tool.

Actually, it wouldn't be the same facts. I'm aware that you can't sue for the SAME thing twice. I get that. However, the second issue has to do with data breach, and a huge one.

The first one (that I won on) has to do with interruption/stoppage of my business and lack of allowing me to continue. They had a better standing on that one than they do the future class action one. I'd be happy to share the details in a private msg.

 

[zddoodah]

Actually, it wouldn't be the same facts.

OK, but you would not "go after them in a class action." That's not how class actions work.

 

[quincy]

Actually, it wouldn't be the same facts. I'm aware that you can't sue for the SAME thing twice. I get that. However, the second issue has to do with data breach, and a huge one.

The first one (that I won on) has to do with interruption/stoppage of my business and lack of allowing me to continue. They had a better standing on that one than they do the future class action one. I'd be happy to share the details in a private msg.

You should check to see if there is a class action being considered against the company already. It is often not too long after a data breach that a law firm starts gathering parties for a suit.

Good luck with your efforts to collect on your judgment.

 

[TigerD]

Sorry, Quincy. I didn't see your ping until this morning.

OP I hate to tell you this here is the truth: Prior to becoming a lawyer I invested in judgments in Missouri. I purchased some and went forth to collect on them. I had years of experience as a debt collector and had a solid understanding of the procedures and law. And still ran into major obstacles.

Navigating Missouri enforcement statutes will take some work and a fair bit of time. Additionally, there are many circuit clerks that have decided there are steps you must follow before they will do their jobs. You are not going to get around them without a Bar number. And frankly, sometimes even with a bar card, it may be easier and cheaper for your client to just go along and get along.

Your judgment of $5k in small claims is next to worthless. Yes, it is a lot of money for many people. But it isn't enough to interest an attorney that is worth interesting. You will have to read the statutes and maybe pay a local attorney for an hour or two of time to discuss how to enforce your judgment. Look for an attorney with experience and be ready to pay several hundred an hour.

 

[donnalpm]

Just an update to report. I've filled out both the Interrogatories to Garnishee and Writ of execution, filed/paid the service fees. I have received the response to the Interrogatories to Garnishee and the bank is in possession of the funds and holding for disbursement. That was sent back to me on or about Oct 30th. If I'm correct, the hold it for 25 days, then it's released and sent to me. Much more simpler than I expected. I'll report back once I do in fact get the funds. Thank you all for your help navigating the legal waters.

 

[quincy]

Just an update to report. I've filled out both the Interrogatories to Garnishee and Writ of execution, filed/paid the service fees. I have received the response to the Interrogatories to Garnishee and the bank is in possession of the funds and holding for disbursement. That was sent back to me on or about Oct 30th. If I'm correct, the hold it for 25 days, then it's released and sent to me. Much more simpler than I expected. I'll report back once I do in fact get the funds. Thank you all for your help navigating the legal waters.

Thank you for the update, donnalpm, and thanks for the thanks. We appreciate it.