How to Sue a Client for Non-Payment

Before you decide to sue a client for non-payment, you have to determine whether doing so is a smart business move. There are a number of reasons why you may decide to not pursue the matter in court. One primary reason to consider is if it’s worth the legal expense that you will incur to file and sustain a legal battle. A secondary reason is the potential bad publicity that you’ll get, even though you have a legitimate claim. It can be difficult with some clients to remain objective and make your decision without anger or emotions running high. You should consider the ramifications before you go after a client and deny any impulse to take immediate legal action. If you’re satisfied with your decision to sue them, here’s how to do it:

Demand Payment First

Ask your attorney to draft a demand letter on your behalf and have the attorney send it to the client. If the amount is too low and if it costs more to have your attorney draft the letter, then you’ll have to do it yourself. There are several sample demand letters online. The gist of the letter is that you’re asking the client to pay within a specified time of receipt of the letter, and in the letter you document the monies owed and the facts that back up that payment is owed. You should serve the letter on your client by sending it by certified receipt through the post office, and you should require a signature upon receipt. The letter will be included in your evidence when you pursue the matter in court.

Write Your Complaint

If the client is non-responsive, you’ll have to write your complaint to file in small claims court. Whether you file a complaint in small claims court or superior court in your area depends on the amount owed. Call the court clerk if you’re not sure where you need to file your complaint. The information should be available on the court’s website as well. The complaint should state the facts which prove the basis for your legal claim, such as the services you provided, the dates when you notified the client about the payment or sent an invoice, and any agreement made between you and the client for services and payment. Your job is to prove that the client breached the contract, whether it was written, verbal or implied.

File Your Complaint and Serve the Client

Any small claims court will require proof that you served the client with a complaint and summon. The exception is when you can obtain a waiver of service, where the client agrees to waive his rights to be served. You can serve the client by certified mail or have an authorized court official do it for you. The best thing to do is find out what the court in your jurisdiction requires for a proper serve. Your client could ask the court to dismiss the case if you don’t get this right.

Present Your Case at the Hearing

The court will schedule a hearing for your case. Before the hearing, you may have to respond to your client’s Answer and motions in writing. You may also have opportunities, or at least look for them, to settle with your client. It’s important to prove your case at the trial, by illustrating to the judge why you should be awarded damages for breach of contract. If the court rules in your favor, then you can proceed to collect the court judgment.

It’s important to determine up front whether you can collect a judgment before you sue a client. You may win in court, but if the client has no assets or money, then you’ll have wasted your time.