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Small Claims Court Adventures
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<blockquote data-quote="BryanDP" data-source="post: 3724087" data-attributes="member: 1111"><p>Years ago when I owned a business that had employees a process server dropped by our place of business with an envelope that had an employee's name on it and handed it to my general manager. He told my manager it was a summons and could he give it to the employee, which he did. The employee took it home and that was that, so we thought.</p><p></p><p>As it turns out, the summons was a garnishment summons from a payday loan company for the employee whose name was on the envelope. The summons was supposed to be served to us - not the employee - but since we had failed to respond to it with any answer we were now on the hook for the full amount of the employee's debt, to be paid in full. In other words, the company essentially became the indebted. I called the loan company which I learned was actually owned by an attorney and she would hear nothing of it. I got the feeling they made this "mistake" all the time and since the balance was relatively low (about $450 if I recall correctly) businesses regularly just paid it to make it go away. But not me. As a small business owner every dollar I paid out was a dollar I couldn't put in my pocket so I was going to fight this.</p><p> </p><p>Eventually the business was summoned to small claims court. I went in on behalf of the business which really shouldn't have been allowed since we were a corporation but I guess the rules are a little looser in small claims. Either way, the judge allowed it. The attorney/loan shark argued her point. I let her finish and told the judge that the service was invalid because while it was handed to the correct party (an agent of the business) it was inside a sealed envelope with the employee's name on it. I told them that all I was asking was for the default judgement to be set aside and I be given valid service which I would be happy to accept in front of him from the plaintiff right now in court. He agreed and the attorney, thinking she had "won", very smugly presented me with the papers.</p><p></p><p>At this point the indebted employee in question was no longer working with us so I just marked that on the garnishment summons, went to the counter in the same building as the courtroom where you file court documents and that was the end of it for us. The loan shark attorney was pissed because she was back at the square one and now had no idea of where this guy worked. Had she been a little nicer along the way and not dragged me into court I probably would have helped her find him but instead I opted to let her go it alone.</p></blockquote><p></p>
[QUOTE="BryanDP, post: 3724087, member: 1111"] Years ago when I owned a business that had employees a process server dropped by our place of business with an envelope that had an employee's name on it and handed it to my general manager. He told my manager it was a summons and could he give it to the employee, which he did. The employee took it home and that was that, so we thought. As it turns out, the summons was a garnishment summons from a payday loan company for the employee whose name was on the envelope. The summons was supposed to be served to us - not the employee - but since we had failed to respond to it with any answer we were now on the hook for the full amount of the employee's debt, to be paid in full. In other words, the company essentially became the indebted. I called the loan company which I learned was actually owned by an attorney and she would hear nothing of it. I got the feeling they made this "mistake" all the time and since the balance was relatively low (about $450 if I recall correctly) businesses regularly just paid it to make it go away. But not me. As a small business owner every dollar I paid out was a dollar I couldn't put in my pocket so I was going to fight this. Eventually the business was summoned to small claims court. I went in on behalf of the business which really shouldn't have been allowed since we were a corporation but I guess the rules are a little looser in small claims. Either way, the judge allowed it. The attorney/loan shark argued her point. I let her finish and told the judge that the service was invalid because while it was handed to the correct party (an agent of the business) it was inside a sealed envelope with the employee's name on it. I told them that all I was asking was for the default judgement to be set aside and I be given valid service which I would be happy to accept in front of him from the plaintiff right now in court. He agreed and the attorney, thinking she had "won", very smugly presented me with the papers. At this point the indebted employee in question was no longer working with us so I just marked that on the garnishment summons, went to the counter in the same building as the courtroom where you file court documents and that was the end of it for us. The loan shark attorney was pissed because she was back at the square one and now had no idea of where this guy worked. Had she been a little nicer along the way and not dragged me into court I probably would have helped her find him but instead I opted to let her go it alone. [/QUOTE]
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