FORUM SELECTION CLAUSES CAN HELP YOU COLLECT YOUR MONEY

FORUM SELECTION CLAUSES CAN HELP YOU COLLECT YOUR MONEY

SUFFOLK —- An internet service provider’s out-of-state debtor decides that it does not want to pay its bill. Fortunately, the provider’s contract contains a forum selection clause allowing for suit to be filed in Massachusetts. The provider hires me and I immediately began work.

The debtor had no assets in Massachusetts which I could attach. However, by submitting itself to the jurisdiction of Massachusetts the debtor allowed the court to enter an order precluding the debtor from preventing its  assets. This has a similar effect as an attachment.

After carefully reviewing the contract, I filed suit and sought a temporary restraining precluding the out of state debtor from transferring its assets other than in the ordinary course of business. After serving the debtor with the summons and complaint, I proceeded to obtain a Preliminary Injunction. Unlike a temporary restraining order which expires no later than ten days after issuance, the Preliminary Injunction lasts during the entire litigation. After being served with the Preliminary Injunction, the debtor suddenly came to the table. After a short negotiation period, the debtor paid $10,000.00.

Can you say KA-CHING? My clients can!!

For bad debt over $5,000.00, call Attorney Alan M. Cohen at (508) 620-6900 or email alanmcohen@collections-law.com.

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