Can Target tell Toys R Us? Yes. Will they? Unlikely.
I advise my clients to ignore the civil demand because I've never seen a store sue to collect. I write the store or it's lawyer and tell them not to contact my client. That ends the letters and calls that will start soon for your friend. Your friend was lucky not to get arrested and should not count on getting so lucky again.
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If he does not pay the fine they will likely just write him some letters. ignore the civil demand and they will most likely not do anything.
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I agree with my NY colleagues. Hopefully Mike learned his lesson. He does not appear to be the smartest criminal.