If you lend someone $15,000 to $25,000 with no wriiten contract and they do not pay you, can you take legal action?
My mother let her friend borrow this money and the woman is no longer speaking to her and has made no effort to pay her back. My mother said that they did not sign any contract, but the woman promised to pay her when she received money from an accident settlement. The woman has alcohol and gambleing addictions. My mother is also mentally handicapped, although she has never been formally diagnosed. My mother wrote her checks, so she can prove that she gave her the money. The woman also told other people that she borrowed the money from my mother. She cannot afford a lawyer and would not be able to state her own case, but I want to do whatever I can to help her.
Attorney answers (1)
Pamela Koslyn
Reputation Level 20
Answered over 2 years ago.
Business Attorney in Los Angeles, CA.
Yes, she an sue. In CA, oral agreements are as enforceable as written ones, although oral ones are more difficult to prove, and there can be doubt about what was agreed to. On an oral contract, your mother has 2 years from the date of breach, which in this case would be the date the borrower got her accident settlement.
She would prove her contract by the cancelled checks, her oral testimony, and the testimony of other witnesses that the borrower told about the debt, confirming e-mails or other correspondence mentioning the debt, etc.
$15KL - $25K is too much for the $7,500 Small Claims court limit, so she'll have to sue in Superior Court. If she can't hire a lawyer, she'll have to do this "pro per" which means she has to represent herself. No one who's not a lawyer can represent her in court because only lawyers can do that. If you help her behind the scenes withe paperwork, that's practicing law without a license, but no one will know. She should sue for 1) breach of oral contract and 2) money lent, plus if they agreed to interest, late fees, and/or legal fees, those should be added as well.
Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship.
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