Need to Sue American Client

I am in Canada.

[JasonIR]

I have a client in the State of Florida who refuses to pay for work completed on the grounds that he is broke.

I have a rock solid contact with this individual. How do I go about getting my money from him? What is the easiest way to get paid? Do I actually have to sue him? It seems like it would be a great headache to sue him, but the contract is worth several thousand dollars. Would I have to sue him in Florida, and therefore travel there?

It would be a nice excuse to go on a holiday.

Anyone done this before?

Thanks for any advice in advance.

[Chris_R]

A few thousand dollars in another country isn't going to be worth it, unless you want to do it on principle. I have lost more money "on principle" than probably anything else.

You could file in small claims court. May even be able to sue him in Canada, but chances are fair he really is poor and you won't collect.

I think going the "collection agency - we will ruin your credit route (have them do that)" or having a lawyer send a the "nasty letter without really suing" are your best options.

[tombola]

I have a rock solid contact with this individual.

What about the "Governing Law" clause in your contract? Does it say that only courts in Canada will handle disputes?

[JasonIR]

What about the "Governing Law" clause in your contract? Does it say that only courts in Canada will handle disputes?

From my contract:

"ARBITRATION: Any disputes arising from this contract will be litigated or arbitrated in Toronto, Ontario. This Agreement shall be governed and construed in accordance with the laws of the Province of Ontario, Canada. The Client shall pay all arbitration and court costs, reasonable attorney's fees and legal interest on any award or judgment in favor of **********."

[rogerd]

Sounds like you or your attorney need to send the client notice that you intend to arbitrate the dispute and the procedure he will have to follow to participate. If he fails to show up, you will probably get a default judgment at low cost.

Enforcing a judgment may be very difficult if he's actually broke, of course. I kind of like the idea of hiring a Florida-based collection firm. You'll pay 25-40% of any recovery, but they are in a better position to stay on top of the deadbeat. You could engage them either immediately or, if you get a quick arbitration judgment, after that. Waiting for an arbitration judgment would have the benefit of avoiding any issues of incomplete or unsatisfactory work, etc.

Be sure your record-keeping is in good shape - document when you call this guy, what he says, etc. Good luck!