QUESTION: I RECENTLY SOLD SOME OF MY OLD BASS GEAR AND AGAINST MY BETTER JUDGMENT, I ACCEPTED A CHECK FROM THE BUYER. THE CHECK BOUNCED AND I CAN’T LOCATE THE BUYER. I’M OUT $3,000. WHAT CAN I DO?
ANSWER:
If working out any sort of resolution with the buyer has failed, then your only option to recover payment is to pursue a remedy in court. As a plaintiff, you can either bring your cause of action in conciliation court (small claims court) or district court. Conciliation court cannot hear claims that exceed $7,500.00. If the amount of the bounced check exceeds that limit, you will have to file in district court. Since the dishonored check was for $3,000.00, you can file in conciliation court. The benefits to conciliation court are numerous and will result in a quicker and less expensive recovery.
The state legislature created conciliation court to provide plaintiffs (the person bringing the suit) with an inexpensive way to bring their claims without complex rules of procedure or the need for an attorney. Attorneys are allowed to represent parties, but only with permission from the court. I don’t know how often this rule is enforced, since I have never had a problem appearing on behalf of a party in conciliation court. Anyone who has seen People’s Court knows what conciliation court is like. The person hearing and deciding the case is called a “referee” and is often an attorney or retired judge. You can file your claim in the county where the defendant lives. In the case of the bounced check, you can file it in the county where the check was issued. In Hennepin County, it will cost you $55.00 to file your case and you can add that cost to your claim for a total of $3,055.00. Unlike district court, you do not need a formal complaint drafted by an attorney to begin the action. You can use the standard one page form for any county, which can be found at www.courts.state.mn.us/ctforms. A person from the court administrator’s office will usually help you fill out the form if you have questions.
After filing the claim, it needs to be served on the defendant. If the amount in dispute is under $2,500.00, the court will serve the defendant for you by first class mail. In this case, the bounced check is more than that amount so you will have to mail the complaint to the defendant using registered mail. Take the signed receipt to the court date to prove the defendant was served. The court will notify both parties of the date and time for the hearing. Many times, just being served with the complaint and a court date is enough to make the defendant come forward and pay in order to avoid going to court.
Assuming the defendant doesn’t settle, you will have to appear in court when the date arrives. Your case will be one of many on the docket. Before your case is called, you and the defendant will be told to go into the hallway and show each other the evidence you will be presenting to the referee. In this case, the bounced check. The hearing will be informal and will not follow ordinary strict rules of evidence. Each side will generally be given 15 minutes each to present their case. If the defendant does not bother to show, ask the court to award a Default Judgment in your favor. This is essentially forfeiture by the defendant since he did not bother to make an appearance.
Rarely will the referee rule on your claim at the hearing. Approximately two weeks later, both parties will be notified by mail of the result. If you win in conciliation court, the judgment will take effect 20 days after it was mailed. After that, you can pursue collection activities if the defendant has not yet paid you. The court has a brochure that will inform you of your options in order to collect a judgment. Among them are placing a lien on the defendant’s checking account or garnishing their wages.
The information in this column is for general information purposes only. It is not intended to provide advice regarding a specific legal situation. Legal advice can only be provided after consultation with a specific attorney.
Email your questions to galen@riftmagazine.com |
