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Non-payment of contracted dues

1 Answers. Asked on Sep 18th, 2017 on Corporate Law - California
More details to this question:
I’m a professional who owns & works out of an LLC in Canada. I sub-contracted with a US company US who have not paid my dues. They paid it for the first couple of months & then there were delays for several months, they claimed that there was cash flow problems. They resumed payments 6 months later while I continued to work for them. They offered me a promissory note & a payment plan for all the dues & an interest amount tacked on to the capital that was due. Again they made a few payments (not the entire capital) after which there were delays again from their clients & again I continued to work. They made the occasional payment when I would really press them but there was no consistency/predictability. I have stopped work. They defaulted on the promissory note & the original contract. They keep telling me that the payments are around the corner but they won't provide a date or a payment plan. This while they have hired full time staff and upgraded hardware. What are my options? TY
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Answered on Sep 19th, 2017 at 10:34 AM

If you sue the company here, you will have to come here for the trial, if there is one. Most cases settled. The other side can also force you to come out here for your deposition and for a mediation or settlement conference. We can ask the other side to do your deposition by phone, but they don't have to agree.

Another strategy would be to sue them in Canada. That's where you did the work, and that's where they paid you. They probably will not defend. You'll get a judgment. Then I can try to get a local court here to enforce the judgment. The other side will object that it should have been sued here. However, if you win, then you will have avoided all of the expense of actually litigating the case, including traveling here for your deposition, a mediation or settlement conference, and the actual trial.

Do you have a written contract with the California company? Does it say that California law will control or that disputes must be decided in California? If so, then your chances of getting a California court to enforce the Canadian judgment will be less than 50%.

Dana Sack

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Corporate Law
Attorneys who practice corporate law can offer strategic advice on the critical legal issues that affect your business. From helping to select an appropriate business structure (such as a corporation, partnership, limited liability company or s-corporation) to offering guidance on governance issues, a corporate lawyer can serve as your business's ally, advocate and risk manager. Law firms that practice corporate law often have lawyers who focus on particular subspecialties, such as corporate finance, commercial law, and mergers, acquisitions and takeovers.
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