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What can a sole proprietorship autohauler do when a out of state customer refuses to pay.

My brother and I run a 3-car trailer auto hauling business. We are fully licensed and insured with Ohio being our registered state. We accepted and have a contract from a Florida car hauling broker agreeing that we would be paid upon delivery of a used vehicle to a small chevrolet dealership in Mississippi. The vehicle came from Florida and was a dealer demo. Upon delivery the contact person at dealership in Mississippi wanted to take the vehicle into the garage to be able to see if there where any damages. Once the vehicle was inside he said that that were some scraps and scratches on the front bumper splash guard (the piece below the bumper) and he was going to file a claim with our insurance which he already had our insurance on file. He said he was refusing to pay for the transport. I asked for the vehicle back and he refused and he also would not allow me to take pictures. I called the local police department who sent two officers. I explained to the officers that we had a contract agreeing to be paid upon delivery of said vehicle. The officer in charge told me that this was a civil matter and I would have to leave the premises without the said vehicle even though I had not released by signature the vehicle. I was able to take pictures after the officer asked the dealership contact person to allow me too. The officer did ask the contact person if he was accusing me of damaging the said vehicle which he replied yes then the officer asked him if he saw me damage the vehicle which he said no. I also have discovered that the Florida auto broker and Mississippi dealership owner are brothers. I had a vehicle inspection done at the shipping location which is part of the bill of lading but dealership to dealership transfers, the shipping dealership always refuses to sign which is the normal in the car hauling business. The dealership contact person also said he had pictures which I asked to see but after 15 minutes he said he didn't have pictures on this particular vehicle. On the back of my agreement I have a paragraph that says "All questions, issues or disputes arising out of or under this contract shall be governed by the laws of the State of Ohio. Venue is hereby agreed by the parties to be exclusively in Ashtabula County. In the event that suit is commenced to enforce this agreement, the cost of such litigation, including reasonable attorney's fees, shall be paid to the prevailing party by the other party." I have read online and I am reading differently that small claims has to be done in the state of the defendant, is this true? What can I do? If I have to file in the State of Mississippi would I be entitled to be compensated for lost income? If so that would put me way past the small claims limit. Please any suggestions would be appreciated.

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Attorney answers (1)

Reputation Level 20
I discussed this issue in my article on commercial litigation. You have the legal right to sue in your home state. The difficulty is trying to collect once you get the Ohio judgment. It may be better to file a suit in Miss, and collect there. It seems to me that the Miss and Fla auto dealers are running a scam and you got caught in the middle of it. In your case I would charge them with grand theft auto. This may make it worth your while to file the suit in Miss.
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