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Do I need a business attorney? Is it better to go to small-claims court for breach of contract?

Bankruptcy and Debt 4 views 4 answers
Corporation was filed in Texas. I invested $10k in a food truck company about 18 months ago. Contract stated to provide regular updates (monthly) and the owner did not do this. I did not see the truck out on the streets for more than 3 months. After a few months owner stopped returning calls/emails/texts. I found out recently that he sold the truck and claims he can't pay me back.

Attorney Answers

4
Mark Wright ·
This is a tough question because even if you go to court (small claims or otherwise) you will certainly spend some amount of time and money. Even if you win a judgement, depending on the financial status of the debtor, there may be no way for you to collect. Further, the debtor may simply elect to file for bankruptcy, possibly avoiding the judgment.
0 upvotes
Bruce Bain ·
Atty Siegel is right about the attorneys fees. However that may be worth it, IF and I say IF he has the ability to pay it back.
0 upvotes
Jack Lewis SiegelLitigation LawyerDallas, TX ·
I'd go after him in small claims court because the matter at stake is 10k. If you hired an attorney, you would have to go after him in regular court because you'd be seeking over 10k (with attorney's fees). Small claims is likely the best avenue here because an attorney will likely not take up your matter unless you pay him hourly. I know that I would not take a case on contingency like this when collecting on the judgment is so doubtful. Hope that helps.
0 upvotes
Stuart Lautin ·
The limit of JP - Small Claims Court is $10k. Your damages may far exceed that amount if the enterprise was successful, generated profits and you didn't get your share. Conversely, perhaps the food truck business tried hard to succeed but failed and you are not owed anything except for financial reports so you can justify a bad debt tax deduction. So yes, get a DFW business lawyer with whom you can discuss this and prepare a strategy which may or may not involve litigation.
0 upvotes

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