How do file my case with the civil court? Do I need to hire a lawyer?

Question

I own a used car dealership (corporation) and we have been selling cars to a dealership that owns by a friend. There are 5 cars that we sold to them were not paid and this friend has withdrawn from the business leaving his partner for us to deal with. Amount owed is $26,000. He didn't pay us for these cars and was avoiding us. We filed a claim to their bond and is still in process. According to the bond company, there are a few more 'victims' like us, and most likely they are going to split the bond and we would probably get only half of the amount that we filed ($13,000).

I'm wondering if I should file a case at the civil court on this. Should I file for the entire amount or the balance that won't be covered by the bond. We haven't been paid by the bond company yet, probably in another 30 - 60 days. I have never done this before, can someone give me some suggestions where I should start from?

I spoke with a few lawyers, and they said with the amount I'm claiming, it won't worth to hire a lawyer. I need some guidance if I'm going to do this by myself. Is there any lawyer out there that work on contingency basis for cases like mine? Please help.

Answer 1

Do you actually release title to the cars before they are paid for? Wow, sorry I don't know what you can do if you don't want to pay a lawyer.

Answer 2

No lawyer will take it on contingency, that said the amount you are seeking after the bond amount is paid would most likely be higher then small claims in your state, if so its regular civil suit but no impossible to do pro-se that said some issues:

1. If your corporation purchased the cars then only a licensed lawyer can represent a corporation in a civil case, so you may not be even able to do pro-se

2. If you sold them to another corp. and they did not personally sign off then you sue the corp. if it has assets, its hard to pierce the corporate veil and sue them personally  

Answer 3

A real person can always represent himself in court, but a corporation is not a real person and must be represented by an attorney.  Your corp has a suit for 26K and there are lawyers around who would take it on a contingency.  Look for a sole practitioner or someone new.  In a small or medium town, just drive around the neighborhood around the courthouse, look for signs for a sole lawyer and ask if they want the business.

Answer 4

probably not, because what the other lawyers were telling you, was that working for 1/3 of 13K, or about 4500, is not going to be worht it for them. There is risk of getting nothing at all, and their estimate of the time involved makes it a poor use of their time.

Unless there are some interesting legal principles involved (unlikely from your description) then you are probably have these choices:

1 - pay the lawyers for their time as they go

2 - drop the matter

3 - pursue other collection options

4 - do it yourself, but the court will cut you no slack if you do so.

5 - find a way to make the amount higher so it is worth taking the risk for some lawyer

6 - make the time involved less so it is worth someone's taking the risk

7 make the risk lower so it is worth someone taking a risk

up to you I guess which to choose, but those are your choices right now.