TeamBiz Editor | Posted May 25, 2009, 2:41pm Anonymous question from a member:
Hi everyone!
A while ago I have been contacted by an older client to do some consulting work. I was payed 50% at the beginning and delivered the project quickly as my client was in a hurry. Being the third project, I trusted them with a delayed final payment. Six months later, after unanswered e-mails and phone calls, I learned that they re-did the same project with a new company, associated with one of the partners. The whole project costs just under $3000. Does anybody have any idea if there is anything I can do to get the rest of my money? Is it worth suing the client for $1500?
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Greg Sloan | Posted Jun 12, 2009, 12:47pm I would...If I knew my work was exactly as promised to the customer, on time, up to code and all that Mike Holmes stuff. I would put a lean on the property and sue for the remainder. Mind you, I would have done so within 30 days of not being paid. Documentation is big here and you better be sure about the quality of your work. Witnesses would be nice too. Maybe you should retain a lawyer for this sort of stuff.
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Bruce Parsons | Posted Jun 16, 2009, 7:32pm Suing for $1,500? depends entirely on your resources and perseverance factor. It is not worth hiring someone to sue on your behalf, though you will want to call a paralegal and get a free consult. You may even want to consider hiring an agent to "consult" as you go through the process, it can help and not be terribly expensive. Some paralegals offer consulting or self help kits that are cost effective.
Do you have a claim? Consulting services, in particular, can be difficult to prove. Was there a final report? A final invoice that was acknowledged? Can you show value for work ? There is where your free consult comes in, prior to launch!
You start with a letter, which I believe you should do, formally asking for payment and mentioning further action may be necessary however much you might regret it, this is a former client and you may well still have friends there!! If there is no response, you can draft a claim, setting out the circumstances in numbered paragraphs, attaching your invoice and the demand letter. It will cost you $75 to issue the claim, and you can serve it via mail. From there, you may get a response, a defence or have to proceed to default judgment.
Direct court costs to obtain a judgment in Small Claims are typically under $200.00, you have to add in time and energy! Forms are available online, google Ontariocourtforms.ca.
Always keep in mind that judgment is the first step, you have to be able to enforce your judgment. For that, you need to know what assets are available to satisfy your judgment, ie bank accounts, receivables, real property, etc.
It can be educational and fulfilling to bring your own action and fight for your rights. Just remember, you will need to be patient!
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