The Price Of Small Claims Court Justice

This is a story about the experience of a dear friend of ours which I’m compelled to share because it taught me that justice may not be for all, after all.

A friend of ours is in the business of Website design, Internet marketing, etc. His business used to be quite prosperous until some 3 years ago when the recession hit it hard. Just as my friend was becoming desperate an unexpected blessing arrived: a new female client who owns three local businesses – and is known to be a millionaire – hired him to handle the Web presence for one of them. My friend and all who care about him were ecstatic, not to mention greatly relieved.

I was a bit surprised that once he started working on the project, he became quite solitary: not even an occasional phone call. It occurred to me that perhaps after scoring such a catch he may look down on his old friends, but I took my chances anyway and after a week or so, I called to find out how the great project is going. To my surprise, he told me – after only a week of working for the “big fish” – that the work is turning into a nightmare. The rich client is extra-ordinarily demanding, exploitative and controlling (she even demanded his cell phone number and calls him at any hour of the day and night).

Keep in mind that they had a signed work contract specifying what work is to be done within what period of time as well as the amount and frequency of my friend’s compensation. Even though the original agreement specified services for one business, my friend was basically strong-armed into handling the Web presence of all three, at the the pay for one. Long story short: the woman was worse than a stalker but my friend took the abuse and bore with the exploitation to earn some money and save his business.

Having done an enormous amount of work, while he was delivering a progress reports to the client, she said: “what do you mean the following work has been completed and a payment is due? I thought you’re doing the work as a favor to me.”

That’s done it. My friend realized that the client yields all the power and will force him to work indefinitely while reneging on payments. He’s filed a claim at the Small Claims Court. Eventually, the case was heard by a judge who found that my friend is right and the rich client wronged him. In accordance with California law, the client had 30 days to appeal which she didn’t. Once the time to appeal was over, our friend had the legal right to ask the debtor (remember: she’s a millionaire!) for payment. She didn’t bother replying.

When it became clear that she won’t pay, my friend explored the options of collecting the monies due to him. He filed and paid for a Writ of Execution and was instructed to pay another $30 to the Sheriff’s Department to have it served. To his surprise he couldn’t find the proper form at the Sheriff’s office. So he proceeded to the clerk and asked for it. That’s how he’s learned that in order to collect the judgment (the only venue that applied to the specific situation was to place a lien on one of his client’s vehicles) costs nearly $1,000.00, that’s in addition to the $30.00 he budgeted for the service….

We couldn’t believe it at first and since we wanted to help him we explored the issue further. As it turns out, he’s right. He’d have to pay the money which he would receive back IF the Sheriff succeeds at seizing the client’s property in 6 or more months. If however the Sheriff fails to seize it, the money would be used to pay for the Sheriff’s efforts regardless of outcome.

When I first said that his client was a female millionaire you may have imagined someone like Paris Hilton. Far from it, this “lady” is a head of a family and a mother of several grown children who can easily transfer the ownership of all her property to family members…. With the recession and all, there was no one in our circle of friends who could have afforded to gamble $1,000….

Of course, you don’t know the guy whose story I told, we do. This is not the type of a person who makes money by suing people. (He works hard, is excellent at what he does, and often does extra work at no charge.) This is a clear cut story of a rich person basically stealing from the poor one and there is nothing the wronged party can do about it while the rich individual continues to get richer. (At this point I can actually imagine how the millionaire in question became a millionaire: by manipulating others into providing products and services; not paying for them and then walking away scot-free.)

Bottom line: Winning in a Small Claims Court is half the victory. Collecting the judgment awarded to you by the court is reserved for those who can afford to pay the fees involved. (After 5 months filled with anger, our friend is back where he started and chasing after new accounts.)

We have learned that there is justice for those who can afford to pay to collect the judgment awarded to them by the court. On the other hand, those who have money can rob blind anyone they want to with impunity.

There is no justice for those in the right, there is freedom from justice for the rich, no matter how guilty they might be.

What a lesson! By the way, did you know that this is how the process works? I had no idea!