In earlier posts, Griswold Law provided helpful tips for protecting and maximizing business revenue. In addition, Griswold Law has provided readers with its approach to collecting business debt. However, if you or your business is only concerned with one or two minor delinquent accounts, filing a lawsuit in small claims court may also be an appropriate option. Of course, it is merely one of many options. It is always recommended you consult with an attorney before taking any legal action.
In California, if an individual's claim is for $7,500.00 or less, that individual may sue in small claims court. If the claim is filed on behalf of a business entity of any form other than a sole proprietorship, the maximum claim amount is $5,000.00 or less. Refer to the Superior Court of California, County of San Diego's "Small Claims FAQ" page for more information.
If you are successful, a small claims civil judgment will be entered in your favor against the defendant, just as it would in a typical civil division case. Collecting on civil judgments is a whole different task. For more information on enforcement of civil money judgments, refer to Griswold Law's post on this topic.
For a free initial consultation to discuss your business collections concerns, please contact Richardson “Red” Griswold of Griswold Law.