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  1. #1
    Join Date
    Feb 2010
    Location
    Denver, CO
    Posts
    2

    Default Taking a Business to Court for Non-Payment

    My question involves small claims court in the state of: CO

    I run a small business. We provided services to another small business who paid part of our invoice but won't pay the balance (about $2800). I'd like to sue them in small claims court. A few q's:

    1) Do I have to sue them in their county court or can I sue them in mine ?
    2) Do I sue the business or the owner (the invoice was addressed to the business) ?

    Thanks in advance for your help !

  2. #2
    Join Date
    Mar 2008
    Posts
    1,995

    Default Re: Taking a Business to Court for Non-Payment

    Quote Quoting puckcoach3
    View Post
    My question involves small claims court in the state of: CO

    I run a small business. We provided services to another small business who paid part of our invoice but won't pay the balance (about $2800). I'd like to sue them in small claims court. A few q's:

    1) Do I have to sue them in their county court or can I sue them in mine ?
    2) Do I sue the business or the owner (the invoice was addressed to the business) ?

    Thanks in advance for your help !
    Small claims courts in some states allow a Corp or LLC to sue another business, others states limit it to individuals suing. You didn't say if you were incorporated, or you'll be suing as an individual. However, I do not see CO having provisions for a business set up as a corp or LLC to sue in small claims, but you can call your local small claims court to conform.

    Uusually, you would have to sue in the County they have a principle office, and generally you sue the business entity you are billing. There are exceptions to this, but it gets technical.

  3. #3
    Join Date
    Feb 2010
    Location
    Denver, CO
    Posts
    2

    Default Re: Taking a Business to Court for Non-Payment

    We are a LLC. I'll have to check to see whether or not we can sue a business in Small Claims. If anyone else knows or has experience doing this in Colorado, please advise.

    I wonder if I could sue a business as an individual ...

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Taking a Business to Court for Non-Payment

    It looks like you're good to go. I would expect an LLC to fall under the "corporation" provision.
    Quote Quoting CRS 13-6-407. Parties - representation.
    (1) Any natural person, corporation, partnership, association, or other organization may commence or defend an action in the small claims court, but no assignee or other person not a real party to the transaction which is the subject of the action may commence an action therein, except as a court-appointed personal representative, conservator, or guardian of the real party in interest.

    (2)
    (a)
    (I) Notwithstanding the provisions of article 5 of title 12, C.R.S., in the small claims court, an individual shall represent himself or herself; a partnership shall be represented by an active general partner or an authorized full-time employee; a union shall be represented by an authorized active union member or full-time employee; a for-profit corporation shall be represented by one of its full-time officers or full-time employees; an association shall be represented by one of its active members or by a full-time employee of the association; and any other kind of organization or entity shall be represented by one of its active members or full-time employees or, in the case of a nonprofit corporation, a duly elected nonattorney officer or an employee.

    (II) It is the intent of this section that no attorney, except pro se or as an authorized full-time employee or active general partner of a partnership, an authorized active member or full-time employee of a union, a full-time officer or full-time employee of a for-profit corporation, or a full-time employee or active member of an association, which partnership, union, corporation, or association is a party, shall appear or take any part in the filing or prosecution or defense of any matter in the small claims court, except as permitted by supreme court rule.
    (b) In actions arising under part 1 of article 12 of title 38, C.R.S., including, but not limited to, actions involving claims for the recovery of a security deposit or for damage to property arising from a landlord-tenant relationship, a property manager who has received security deposits, rents, or both, or who has signed a lease agreement on behalf of the owner of the real property that is the subject of the small claims action, shall be permitted to represent the owner of the property in such action.
    (3) In any action to which the federal "Soldiers' and Sailors' Civil Relief Act of 1940", as amended, 50 App. U.S.C. sec. 521, is applicable, the court may enter a default against a defendant who is in the military without entering judgment, and the court shall appoint an attorney to represent the interests of the defendant prior to the entry of judgment against the defendant.

    (4) If an attorney appears, as permitted in subsection (2) or (3) of this section, the other party or parties in the case may be represented by counsel, if such party or parties so choose.

    (5) Nothing contained in this section is intended to limit or otherwise interfere with a party's right to assign, or to employ counsel to pursue that party's rights and remedies subsequent to the entry of judgment by a small claims court.

    (6) Any small claims court action in which an attorney appears shall be processed and tried pursuant to the statutes and court rules governing small claims court actions.

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