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Collection on Accounts Receivable

Commercial Litigation Lawyer Miami

Account Receivables Collection

While I have written many posts about the firm’s post-judgment collection practice, were you aware that Andre Law Firm P.A. does account receivable and pre-judgment collection as well?  I am often retained by small business owners (and even other law firms) to collect on their delinquent accounts.  This is among the most rewarding work I do.  As a small business owner myself, I feel a lot of kinship with fellow small business owners, so helping them collect what they are owed for their hard work is especially fulfilling.

Attorneys’ Fees Provisions

One potential pitfall I constantly warn my small business clients about is the importance of having an attorneys’ fee provision in their contracts/invoices/terms and conditions.  I have had clients justify excluding these provisions for fear of sounding too “litigious.” The bottom line is that if your delinquent account is fairly low (under $5k for instance), attempting to litigate to recover that amount without an attorneys’ fee provision is usually not cost effective.  That means you will likely spend your valuable time trying to figure out how to collect in small claims court on a pro se basis. 

I have a new client that tried navigating small claims court themselves on several of these types of cases only to be stymied by relatively basic rules of procedure and the machinations of the litigation process. While one of these delinquent accounts you might consider writing off, having a few of them really adds up against your bottom line.  With an attorneys’ fee provision (and assuming the debtor is collectable), you can have a lawyer litigate the matter for you, and you can concentrate on serving paying clients and generating new business.

Do you have delinquent accounts you need to collect on?  Andre Law Firm helps small businesses recover these accounts, in an efficient and cost-effective manner.  Contact us today to discuss your AR needs.

Limited Liability Company Member Disputes

Commercial Litigation Lawyer Miami

Unsigned Operating Agreements are Enforceable in Florida

Did you know in addition to collection work Andre Law Firm P.A. has a thriving civil litigation practice?  While the firm is best known for collections practice, it also handles business litigation disputes and general civil matters.

An issue that recently came up with one of the firm’s valued clients involves a case where there was a dispute between the members of a limited liability company.  Often such partnerships are handled somewhat informally (the dreaded “handshake” or “gentleman’s” agreement).  In this case the client had an operating agreement the parties had negotiated, but they never got around to signing.  The parties did business together for several years, and only years later did a conflict arise.  The agreement as contemplated greatly benefited our client, but a signed copy did not exist.  Does the contemplated operating agreement control when it is not signed?

Operating Agreements are not Subject to Statute of Frauds

An operating agreement in an LLC is contract, a contract that almost always is contemplated to go into perpetuity (fingers crossed right?).  Contracts longer than a year are usually subject to the “Statute of Frauds,” which is codified as Fla. Stat. 725.01.  It basically states that certain contracts to be enforceable must be in writing (contracts for real estate, contracts longer than one year, etc.) Contracts are also in large part, bilateral, meaning the assent of both sides is necessary to make the contract binding.  That assent is usually represented by the signature of the parties to the contract.

The LLC Statute

Operating Agreements, by statute, do not have this signature requirement.  The LLC statute in Florida is governed by Chapter 605 of the Florida Statutes.  Section 605.0106 establishes the enforceability of an operating agreement in the state, clarifying that the operating agreement is not subject to any “statute of frauds” (other than capital contribution obligations), along with a host of other situations where the unsigned operating agreement will be deemed fully enforceable.  An unsigned operating agreement could even allow for the inclusion of new members, if certain conditions in the operating agreement are met.

While the very best practice is to have your (skilled) attorney draft and have the parties sign the operating agreement prior to formation of the LLC, this bit of knowledge about the LLC saved our client a ton of money.

Do you have a business litigation dispute that needs attention? Contact Andre Law Firm today.  

Domesticating or Registering an Out of State Judgment

Commercial Litigation Lawyer Miami

Often an out-of-state creditor contacts our firm regarding going after a debtor who lives in Florida. What can a creditor do to obtain relief in Florida Courts? Here is a brief overview:

State Court Judgments

While counties in Florida do the domestication process slightly differently, the overall process is universal. The out of state creditor will require an “exemplified” of the original out of state final judgment. An exemplified copy is essentially a certified copy of a judgment that is also signed by a judge verifying the clerk’s certification. A judgment creditor’s affidavit is also required in support of the domestication. A local attorney should prepare a judgment creditor’s affidavit. The affidavit should offer details about the judgment and the contact information for creditor and debtor. These two items are filed with the local clerk’s office, along with a filing fee. While you can file the judgment in any county in Florida, it is best practice to file in the county in which the assets you would like to seize or take a lien against are located. Having an experienced collection firm like Andre Law is crucial in navigating any potential pitfalls.

The clerk will record the judgment and affidavit in the county official records and send a formal statutory notice to the judgment debtor. The judgment debtor then has 30 days after the notice is provided in which he or she can challenge the validity of the judgment. This will only happen in very rare instances. If the judgment debtor takes no action, the judgment will be considered final and will have the same effect as a judgment made in Florida. No collection activity can occur during this 30-day window, something that the client should be well aware of. After the 30-day window has lapsed, the creditor can use every Florida judicial collection tool at his or her disposal to collect on the judgment.

Federal Court Judgments

“Domesticating” a federal court final judgment rendered in an out-of-state federal court is a bit easier of a process and is governed by federal statute. The process is also referred to as “registering.” Typically, a certified copy of the original final judgment, a form called a “Clerk’s Certification of a Judgment to be Registered in Another District,” along with a small fee is all you technically need to register your judgment in Florida. Again, you should do this in the District Court division that services the area your judgment debtor’s assets can be found in (e.g. for a debtor residing in Boca Raton with assets there, it would be ideal to register in the Southern District of Florida West Palm Beach Division).

Once the judgment is registered, the federal rules of procedure allow the creditor to use either applicable federal procedure or state procedure/laws for the collection of the judgment. Andre Law, with its vast experience in this area, can guide creditors on what procedures or tools are available to best effectuate enforcement of the out-of-state judgment. Learn more about our foreign judgment domestication practice.

Subscription Legal Services

Commercial Litigation Lawyer Miami

 

 

We are always striving to give our clients the best and most efficient service.  That is why Andre Law Firm P.A. is proud to announce its to qualified business customers.

Small and medium sized businesses in particular are faced with a myriad of legal issues on a daily or weekly basis.  These issues can take valuable time away from the entity’s principal business practice.  Hiring a law firm on a per hour basis and/or hiring an in house attorney are rarely worth the cost.

A such as Andre Law Firm P.A. gives a client immediate access to an attorney to answer their legal questions and attack routine legal issues (such as routine drafting and contract/document review).  Having readily available legal advice not only frees clients to focus on being productive in their business, but it also gives the client the confidence necessary to take certain actions in furtherance of their business.

Subscription legal service is just another modern and efficient way Andre Law Firm is bringing top notch legal services to its clients.  Call Andre Law today to find out how our Subscription Legal Service can help your business.