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Michigan business litigation: Nonpayment claims

| Apr 9, 2015 | Business Litigation |

While there are many positives to owning a business, there are negatives as well. Having to take a customer to court for nonpayment, for example, is one of the downsides. The need for business litigation services is common for company owners in Michigan and across the country, and sometimes utilizing these legal services is simply the easiest way to resolve a dispute with a client.

The decision to file a nonpayment claim may not be an easy choice to make. When, after frequent requests, the collection of funds owed goes unheeded by a customer, there are really only a few options business owners have. The first, and not usually best option for a company’s bottom line, is to let it go, though it is safe to say most business owners do not take this option. The second option would be to send a formal final demand of payment. For some, this demand is successful; for others, though, legal claims are necessary.

Depending on the amount of monies owed, legal claims may be filed in either a small claims or trial court. Small claims cases, generally, do not utilize representation during proceedings, but obtaining legal guidance beforehand may prove helpful. Those whose claims are submitted to a trial court may have counsel present to argue their case. As these cases are generally more complex, having a legal representative can certainly make the entire experience easier to handle.

Even though business litigation can be difficult and confusing, that shouldn’t deter company owners from pursuing legal resolutions to disputes. While taking a customer to court may be the last thing a business owner would like to do, there are times when it is necessary. Legal guidance is available to walk Michigan business owners through their legal options, offer guidance and litigate claims in court if needed.

Source: allbusiness.com, “Suing a Customer for Nonpayment“, Accessed on April 6, 2015

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