How to recover payment due on invoice

[snellyusa]

Hi,
We are a Florida based company and recently supplied some goods to another Florida company under an official company purchase order order. After we supplied the goods, we invoiced the company.

After being a month late, and numerous false statements about having paid, they finally paid via 'bill payment'. We submitted the cheque to our bank and it 'bounced' due to insufficient funds.

We have continually tried to obtain the money due ($3695) and keep getting the 'the money has been wired', 'checks in the post', etc. It is fairly obvious that the company has no intent on paying us the money.

Where do we stand legally?
How can we get our money?
Can we recoup legal costs and issue late payment penalty fees?

I see talk of small calims but this appears to be personal claims rather than business.

I'm from the UK where our systems appear to be quite different, so don't know too much about this problem and how to resolve it in the USA.

Any advice gratefully received.

 

[mightymoose]

You can report the bounced check to law enforcement... there may be something they can do for a check returned for insufficient funds.
Other than that, your answer is within the civil court. The amount you are seeking can be handled in small claims if you like. It sounds like you are a small business so that may be best. You can certainly let an attorney work the matter for you, and the attorney can seek the value of the check, bank fees, and additional penalties... but will cut his share off the top.
If you go to the small claims court you should find the process quite easy to get started... just wait your court date and speak to the judge.
Making a police report wouldn't hurt, but it will depend on the laws of your state.

 

[snellyusa]

Thanks for the replies ceqiza& mightymoose.

It looks like the small claims is my best option.

Presuming the judgement goes in our favour, does that mean that we will get our money or can the 'customer' still refuse to pay?

Other than that, your answer is within the civil court. The amount you are seeking can be handled in small claims if you like. It sounds like you are a small business so that may be best. You can certainly let an attorney work the matter for you, and the attorney can seek the value of the check, bank fees, and additional penalties... but will cut his share off the top.

 

[mightymoose]

A judgment from the small claims court only gets you the money if the person ordered to pay complies. If the person fails to comply then there are other legal steps to take to get your money- but you must first have the judgment to take those steps. Since this is another company that you are dealing with I suspect you will have more success than if it was a private person.

One more method you can try is to contact the Secretary of State in Florida and find out who handles legal matters for this company. Send them a letter explaining the problem and your intent to file suit if it is not resolved. That might get a result for you... and if not, go to court.