I loaned her with the funding to complete her food trailer business. A week before her grand opening she blocks my number and emailed me calling the relationship off, noting that she doesn't want to hear from me. I have kept all records of the purchased receipts (pertaining to her business) and checks (pertaining to both business and personal monthly bills). She agreed to pay me back all monies once her food trailer business was in operation. There is no written contract and I'm want to take her to small claims court. She's been personally served the demand letter and has 30 days to remit payment. Please advise.
Yes, you can sue her in small claims court. This is the kind of personal legal problem that small claims court was designed for. You should also consider mediation as an alternative. chances are you will have to negotiate a settlement with your ex on the loan (she won't have the money); so, why not work with pros who may save you both a lot of time and trouble?
Of course you can sue her in Small Claims court. However, you likely also have the ability to sue her in normal Circuit Court, which likely has both inherent costs/benefits/risks that you should fully consider before electing which course to pursue.
All told, just like any other verbal contract situation, the biggest issue in litigating verbal loan agreement repayment claims is proving to the court the terms of the contract breach/repayment scheme. Without a formal written agreement, a wide variety of facts are potentially relevant to prove -- and/or attempt to disprove -- the existence of the contract/loan, the terms of the contract/loan, and the existence of a breach and damages.
(Surely, she'll allege in defense that there was no agreement, that there's been no breach if there was an agreement, that the money was a gift, etc.)
Given the existence of a prior personal relationship, a potential exists that she could leverage allegations of harassment, etc., which could theoretically lead to possible restraining order-type situations which you may have to deal with. Thus, it may well be advisable to utilize an attorney to avoid and/or mitigate such circumstances. (In addition to it generally being advisable to utilize an attorney in any event.)
All told, if you have a viable claim that could be heard in Small Claims court, it's rather likely that you could be entitled to recoup your attorney fees, as well, if you elected to properly proceed with the claim(s) in normal circuit court, and thus reviewing the entire situation and circumstances with an attorney to fully evaluate the strengths and weaknesses of your case, and advise as to the likely procedural dynamic, is certainly a good option in moving forward.
