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My mom made a 10s loan over 10 years ago , guy wont cuff up the money can she do something about it ?

Los Angeles, CA |

In about 2003 my mom made out a loan to a guy who was gonna start his tax business , contract stated my mom would loan him 10s and he had a couple months to pay her the 10s plus 10 more . . its been years since she made the loan , why wont pay up , comes up with excuse my mom is a single parent , and it was her saving now he wont pay up . . is there anything she can do , she has contract . . thank you

Attorney Answers 3

Posted

Your mother's loan raises two important issues. First, your mother's claim may be time barred. If the contract was written, the statute of limitations would be four (4) years from the date of breach. If the contract was oral, the statute of limitations would be two (2) years from the date of breach. The breach would occur when the borrower failed to pay at the agreed time. It is possible that they made additional agreements to extend the due date or other exceptions to the statute of limitations apply. You might want to speak with an attorney to assist in your mother in recovering the debt. Alternatively, your mother should consider filing suit in small claims. The jurisdictional limit for individuals is $10,000.00.

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Brad S Kane

Brad S Kane

Posted

The second issue is whether the interest of doubling the money in a few months would be legal. Normally, the maximum legal interest a person can charge is 10%, though there are numerous exceptions such as a loan secured by real property, licensed pawn shops, and federal law permits credit card companies to charge much higher rates of interest.

Posted

I agree with my colleague, Mr. Kane, on this one. The statuteof limitations may have run, but if there were other agreements along the way, or if within the last two yearsthe guy has agreed to pay some or all of the loan, and hasn't, and your mom can prove that, there may be a case. Talking to an attorney is the most prudent thing to do.

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Asker

Posted

well everytime she calls, he says, when i have money ill call u.. dont worry.. so idk if that would help on her still being able to do something

Posted

I agree with my colleagues. There is an issue with the Statute of Limitation (SOL). However, if the man recently told you mom that he now refuses to pay her back, then you can technically say that the "breach" occurred when he refused to pay since he has been promising to pay the last 10 years until just recently in order to get around the SOL issue. Since it is only $10K, it is a small claims matter for the breach of contract. However, your mother can possibly file in limited jurisdiction if she pleas fraud and ask for punitive damages. She should pay an attorney an hour for a consultation. Good luck.

DISCLAIMER — No legal representation is being sought by the response to this question. Please note that this answer is for informational purposes only and does not constitute legal advice. An attorney should be consulted for more in depth legal advice as more facts and information are necessary. No attorney-client relationship is hereby intended. However, if you have additional questions concerning this matter you may reach Dominique N. Thieu, Esq., by: phone 714.435.9500 or e-mail me dnt@thieulaw.com, THIEU VIRTUAL LAW GROUP, 17280 Newhope Street, Suite 20, Fountain Valley, CA 92708.

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Asker

Posted

i didnt quiet understand this part... your mother can possibly file in limited jurisdiction if she pleas fraud and ask for punitive damages.... what do u mean by that?

Dominique Nghi Thieu

Dominique Nghi Thieu

Posted

You cannot get punitive damages for breach of contract. You can get punitive damages for fraud. In small claims, the maximum recovery is $10K. If you mother wants to sue for more than $10K with interests, etc., and sue on claims based on fraud and misrepresentation, then she has to file in limited jurisdiction (recovery $10K-25K - anything over $25K is unlimited jurisdiction). Your mother should consult with an attorney so s/he can thoroughly evaluate her case.

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