Before I get into this week's Freedom Friday blog and email newsletter, I apologize that we did not have an issue released last Friday. My wife and I have been recovering from Covid, which has slowed down a number of projects. We are doing much better, though, and we appreciate your thoughts and prayers.
In this week's Freedom Friday blog and email newsletter I want to introduce a topic with a simple question and talk about one of the many practice areas here at Liberty Legal Solutions, LLC, and that is commercial claims. You may be asking, “What is a commercial claim?” and that is the question I am answering in this week's Freedom Friday blog and email newsletter.
So, what is a commercial claim? The American Lawyers Quarterly (ALQ) defines claims for monies owed into two categories. A commercial claim is an obligation to owe money which is incurred during the course of conducting a business which arises from goods sold or leased, services rendered, or monies loaned for use in conducting business. All other claims, e.g. consumer debts, are called “retail claims.” Not all commercial claims are based on open account balances. Commercial claims can also be based on lease agreements, security agreements, consignments, guarantees, or on any other kind of similar business transaction.
Here at Liberty Legal Solutions, LLC, we prosecute and defend all manners of commercial claims on behalf of our clients. We offer a five-step process for handling the prosecution of commercial claims.
1. Receipt and Review of Your File
The first step in prosecuting a commercial claim is receiving and reviewing the file from the client. Most of our clients who are owed money will send the invoices for review along with any contracts or written documentation. Its important to identify the amount that is owed and also the legal reason why the amount is owed, e.g. breach of contract, open account, promissory note, or something else. Once this review is completed, and it doesn't take long, then we can proceed to the second step.
2. Demand Letter
The second step in prosecuting a commercial claim is preparing a demand letter which we can send to the debtor. Liberty Legal Solutions, LLC, will charge a flat fee to prepare a demand letter and send it to the debtor demanding payment of the monies which are owed to your small business. If the debtor responds to the letter, then we can set up a payment plan to get the monies owed paid. If not, then we can proceed to the third step.
The third step in prosecuting a commercial claim is preparing a lawsuit and having it served on the debtor. If the debtor didn't respond to the demand letter, or you need faster action, Liberty Legal Solutions, LLC, will file a lawsuit on your behalf to recover the monies owed to you as our client. Depending on the amount owed, we charge a flat fee for this service. After the lawsuit is filed, we will watch and wait to see if we can obtain a default judgment on your behalf. If not, we will offer other litigation strategies in a phased fee approach. Most cases are resolved either through default judgment or summary judgment process, but if a trial becomes necessary, we will prosecute your commercial claim to the fullest extent of the law.
The fourth step in prosecuting a commercial claim is obtaining judgment against the debtor for the monies you are owed. In many cases, we can obtain default judgment against the debtor due to their lack of response to the lawsuit we filed. Again, we charge a flat fee for this process. If the debtor does respond to the lawsuit, then we will discuss with you additional litigation strategies in a phased fee approach. This process will lead to obtaining a summary judgment against the debtor. We can also domesticate a foreign judgment in Oklahoma, if you have obtained a judgment in an out-of-state court against the debtor.
The fifth step in prosecuting a commercial claim is enforcement of the judgment. Not only does this step include filing liens and garnishments, but if we do not know where the debtor is employed or has bank accounts, we can obtain a post-judgment Court Order requiring the debtor to appear in Court for an asset hearing to testify under oath concerning the debtor's income, bank accounts, finances, and other assets. If the debtor refuses to appear at the asset hearing, we can ask the Court for additional orders, including finding the debtor in contempt of court, and also authorizing a bench warrant for the debtor's arrest.
If you are interested in starting a small business anywhere in Oklahoma, or you need legal help building, protecting, or defending your small business or other assets, please contact me at [email protected] to schedule a FREE strategy session.
For more information about Liberty Legal Solutions, LLC, please visit our website at http://www.libertylegalok.com/