Should i settle or take this client to court? California

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Should i settle or take this client to court? California

Good Afternoon,

So a Client owes my company 7,500 in past due invoices of 2 years. I placed him on collection and asked for 10,000 to cover the principal amount owed as well as the collection fees but they refuse to pay full amount. My invoices which they signed upon delivery of goods state that they are subjected to a interest rate of 10 monthly as well as liable for all collection/attorney costs that my company will have. as of today I have an offer of 8250 without subtracting what the collector will take away. should I settle or take this client to court?

Asked on August 12, 2016 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Even if your attorney fees will be covered under the terms of the invoices (and don't assume 100% they will be--if the print is small or the terms unclear, it's not impossible a court could refuse to enforce this provision), suing, as opposed to settling, will still take anywhere from hours to days of your and/or your staff's time; will take months or years to resolve; and if the other side is so inclined, they could likely drag matters out further yet by motions for reconsideration, appeals, and/or simply not paying and forcing you to go through collections efforts. 
They are offering $8,250; you write that you sought $10,000. Isn't it worthwhile giving up $1,750 to avoid the time and distraction of a lawsuit, while getting them money more certainly and months or years earlier? I would recommend setting to one of my own clients, if they were offered 82.5% of what they sought withyout having to go to court.


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