Collecting Overdue Payment - Internationally...Help

Bluepenguin

I was wondering whether anyone had any advice for me.

My husband runs a small electrical company, and we've run into problems collecting a payment.

The amount is $8,500 - and the company owing is based out of the States. (We're in Canada)

They've owed us this since April, and every time "the cheque will be in the mail tomorrow", or by "end of the month". My intuition is telling me that they're aware we're not savvy when it comes to knowing our rights, and are taking advantage of it.

It began when the person who we originally invoiced left the company, and our payment "got lost"... They assured us it would come before July 31st. Then by Monday last week. Then by yesterday. I wrote a professional, yet strong worded email yesterday basically saying "To prevent legal measures and interest, we require immediate payment sent by courier, either in the agreed installments, or in full." The VP wrote back this morning assuring he'll send it this week.

I'm starting to doubt we'll ever be paid. What can we do, seeing that they're in a different country? Would an oridinary collections agency work? Letter from our lawyer (we are yet to hire one). Since so many of you work for yourselves here, please share your thoughts...

Its been a very difficult couple of months, we're a small company and this sort of thing is a very big deal. My husband works 12-16 hour days - just for someone to take advantage this way? Its infuriating. (that's another rant)

Any thoughts appreciated.

We Fix Houses

You are very quickly running out of options to secure your debt. The statutory time frame to file a lien on the work premises is usually 90 - 120 days and in a state or two 6 months. After that your remedy is just a regular civil law suite.

Since this seems all new to you and don't know how or where to pull the trigger I believe you're on the right track seeking out a lawyer. Call the local / state bar association referral service in the state that the debt occurred. You can talk to an attorney (collections attorney) for a minimal fee of $35 - $50 for some options. Answering the above questions he / she may say "I usually charge for that" which is reasonable. But overall you may have to sink 1/3 of the claim into legal expenses. But ask questions. If you wish to start with a letter from the attorney, from a new client like yourself expect to pay $300 - $400.

This will be a learning experience. I guarantee somewhere along the way you'll have to do this. Today sounds like a good day to start. Don't delay. The atty can get a lien filed for you if the time frame still works, within hours of your phone call and keep your expenses low.

P.S Get familiar with how to file a lien and lien release. If they don't pay, then a civil law suite must be filed within say 180 days. That's where you'll then need an atty.

DavidC

It is unclear where the work was performed. The location of the property will dictate your response.

Regardless, contact your attorney for the best advice. Do it quickly.

Good Luck
Dave

__________________
www.CookContractingLLC.com

We Fix Houses

DavidC....True...

Call the local Canadian bar assoc. Same principal.

Bluepenguin

The job was performed in Canada (commercial installation), but their company offices are in the States. We've filed liens before - but this situation is unique - since they're not in the same country...

We Fix Houses

Bluepenguin,

Looks like someone your ways knows a bit about these collection things...?

Have you read your previous posts ?

http://www.contractortalk.com/f16/deadbeat-do-i-have-any-hope-collecting-money-37189/

Chris Johnson

Well, unfortunately you have exceeded you lien rights in Canada, the best you could hope for is to sue the contractor, unfortunately you have to sue him in Canada since the dealings took place in Canada. That being said, getting an extradition order against an officer in the company is extremely expensive and will defeat the dollar amount owing.

Just hope that the VP is honest enough to pay as he told you in his email.

You can win in Canadian court, but unless they come back to Canada to do future business you'll never secure the judgement. How did they do business in Canada without registering as a Canadian business and obtaining a CRA number and GST number?

__________________
Chris

We Fix Houses

So why can't you file a lien on the property where the work took place and send the docs to the owner of the premises and the head of the company in the US ?

What took you so long to consider filing another lien since you know how to do this according to your previous posts ?

DavidC

Reading through the older thread I believe you really need to establish a relationship with an attorney and work with him/her to write an enforcable contract. I could plan on getting burned once or twice a year until I finally took that step.

Eventually you figure out that it is going to happen, but it will always catch you off guard and usually waits to strike when you need cash the most.

In your present case a clause stating that the contract will be enforced in your courts juristiction would possibly eliminate the cross border question.

Call an attorney today.

Good Luck
Dave

__________________
www.CookContractingLLC.com

The_Game

send invoice every months with interest and files a lien if they do not paid .
i got 3 lien in the last 2 years in 2 county. only 1 got paid.

The other option.is pain in the but but you will get paid on the spot.
got to the working place ,talk to the manager and bring couples employees,
let them know you are there to undo the work you did for non payemen wire face plate and fuse box what ever it is.
they probably will rush to wire the money in your acc.
if they dont undo it to the point where they are non fonctional and let them know when payement received you will make it right.

We did a job and the costumer did not paid for 5 months, we use is parking lot for a dump for the week end, 200 yard of wood chip and 4 log truck and spreads out so they could park anywhere.

Got paid on monday .
and invoice him to remove all the crap from the parking lot. and got paid for that in a week.

Money got no friends.

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Bluepenguin

Ha, I like that one!

Bluepenguin

I contacted an attorney. tx for the responses.