What can a small business do to collect monies owed for services already performed

Depending on the amount owed, you can pursue your claim in small claims court. How much you can recover in small claims varies from state to state. But the simplicity and speed of small claims is usually worth a sacrifice in the total amount you can seek to recover.

You can proceed under three legal theories. The first is breach of contract. A contract does not need to be in writing to be enforceable. A verbal agreement to provide a service in return for a sum of money is sufficient to create a binding contract. The second theory is quantum meruit. This concept allows you to recover for the value of the work performed, and applies in situations where completion of a contract is rendered impossible for some reason, or when a proper contract fails to form. You could also seek recovery under quasi-contract. This concept is closely related to quantum meruit. It occurs when the plaintiff renders a valuable service to the defendant, the defendant knows of and accepts the benefit, but refuses to pay the plaintiff for it.

It sounds as though you had a valid and enforceable contract. Quantum meruit and quasi-contract would be your back up claims. At the time you recover, the judge may ask you to "elect you remedy," because you cannot recover under all three theories (i.e., if you have a contract, you don't need the other two theories). If you have a contract, that would be your preferred option.

The fact the attorney has admitted her liability to you is good and you can introduce her statement against her in court. But during trial, don't be surprised if she claims your work was substandard, that you damaged her carpets, and other factors aimed at reducing or even eliminating her debt to you. She may also file a counterclaim (e.g. for the replacement of carpet or the like) as a defensive move, in the hope it wards off your claims or may even result in her winning a sum against you. You should carefully consider your confidence in your work as you proceed.

I agree with Simon's answer, and I wanted to point out a good resource on small claims court. I have attached the web site for the King County Bar Association's information site below. Good luck to you, this is a frustrating situation.

You can sue her in small claims court, if the amount owed is small enough, or in "regular court" if it isn't. Depending on Washington laws, you may also be able to file a mechanic's lien.

I recommend speaking with a local collection attorney. He or she can best advise you how to proceed.

Brett Weiss
brett@BankruptcyLawMaryland.com