A service vendor is owed approximately $6,600 from an out of state customer. When the customer morphs into a deadbeat claiming that it is in financial difficulty, the vendor calls me.
In the vendor’s contract, its customer had agreed to subject itself to being sued in Massachusetts. This is called a forum selection clause and if your business does any business across state lines, you should have a forum selection clause within your contract and credit application terms. As a result, I was able to file suit in Massachusetts.
I immediately sought and obtained an ex parte equitable injunction which allowed me to freeze the defendant’s assets as though they were actually located in Massachusetts. After serving the debtor out of state and giving notice of my intent to seek a preliminary injunction (one that lasts throughout the entire case as opposed to ten days like the temporary restraining order), I appeared before the Court and obtained a preliminary injunction. T I then served the preliminary injunction on the out of state debtor.
Shortly thereafter, I was contacted by the vendor’s out of state counsel who initially offered $1,000.00 and then $1,750. He listed off the large amount of debts the vendor owed and said that his client couldn’t pay more than a couple of grand. I told debtor’s counsel that due to the form of the injunction that I obtained, his client could not use any of its funds to pay any other creditors and gently reminded him that if the vendor disregarded the Order of the court, I would seek to have it held in contempt. Opposing counsel indicated that of course his client would obey the injunction and that he would get back to me with a new settlement offer.
The next day the debtor somehow found the ability to pay more. As a result of my legal and aggressive tactics I collected $5,950.00 on behalf of my client which equates to an over 90% collection of monies that would not have been recovered but for my efforts.
When you need an attorney who can get the job done when collecting commercial debts, call the Law Offices of Alan M. Cohen for your bad debt collection solution at (508) 620-6900 or email Alanmcohen@collections-law.com.