Unpaid merchandise

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Unpaid merchandise

I have a wholesale clothing business. I recently
delivered 12000 worth merchandise to my clients
retail store, but he refused to pay all of it. I was going
to pick up the merchandise but he is closing the
business and his store is empty – my merchandises
are all gone. What would be the best actions I can
take?

Asked on August 28, 2019 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

All you can do is sue him for the value of the merchadise that he took without paying. Legally, based on what you write, his liability is clear: you can't take another's merchandise without paying for it. Practically, however, if the store was an LLC or corporation, you can only sue the store itself, not the owner personally; if the LLC or corporation is insolvent, out of business with no asserts, has been dissolved, went bankruptcy etc., then even if you win, you won't get any money--you can't get money where there is none, and a judgment doesn't make money appear where there isn't any. If the store was not an LLC or corporation, however, you can sue the owner personally.
A lawsuit is the only way you may get compensation.


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