Can I file a suit against someone for not complying to the terms of our contract?

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Can I file a suit against someone for not complying to the terms of our contract?

I paid a company $1500 for a loan of $80,000. The loan was to be processed 7-14 business days. Since 11/2/16 there was supposed to be a wire sent out to me but there was an issue everyday with the funds. Contract stated that if he did not complete the task in the said time he would give me my full refund which i have yet to receive. I also put plans in motion and do to all the lying and negligence I’ve lost a lot of money. I want all that money lost plus my refund. I’m looking for $100,000.

Asked on January 17, 2017 under Business Law, New Jersey

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, a contract is legally enforceable in court, so you could sue for breach of contract. You can't sue for $100,000; you can only sue for your actual loss, which would be the fee you paid ($1,500)--the loan itself is not a "loss" since if it was a loan, you'd have to repay the money pursuant to its terms, so it was not "your" money. (Alternately, you could potentially sue for a court order requiring them to make the loan pursuant to the agree upon terms, but to do that, you'd need to sue in Law Division, not Small Claims or Special Civil Part, which will increase the time, cost, and complexity of the action--you can get monetary compensation in Small Claims or Special Civil, but only Law Division can order "specific performance," or that a contract or loan agreement be complied with.)
If the company is out  of state or, worse, international, the cost and complexity of suing them increases, as does the difficulty of enforcing any judgment or court order against them (i.e. you could win the case and still struggle--and spend more money--to get them to comply). And if they are a thinly capitalized LLC or corporation and shut down, dissolve, or file bankruptcy, you may never collect. Or if this was always a scam, as it may be based on what you write (i.e. based on what they offered and the way they have failed  to comply), then the odds are strong that you'll never get your money back or the loan.


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