Expert: Timmy Chou - 12/17/2002

Question
I have filed and won a small claim against a Limited Liability Company in Massachusetts.  The owner of this company appeared in court today to argue that the company is not making money and he can't pay me the judgement.  

Can I place a lien on the company?  If so, how?  Can I obtain public financial records (e.g., tax papers) on the company and if so, where?

Thanks, Steve


Answer
Thank you for your question!

Mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

I am not an attorney but I can respond to your question from my business consulting experience.  Note that this situation may have numerous complex legal considerations and you should consult an attorney.

As you have discovered, having a judgement is not all its cracked up to be.  You must still ENFORCE the judgement and try to collect what is due to you.  

Small Claims Court can help you understand what your next steps are.  You can file a Supplemental Order and compel the owner to come back to court and testify about the assets of the company.  Also you can file a Writ of Execution and try to have a Constable go to the business and impond vehicles, computers, equipment, cash, etc. for the court to adjudicate.

Obviously having no money is not a defense and I'm sure you were given a judgement by the court.  Do your best to chase this guy down and find out what he owns.  Old employees, friends, customers can all be helpful in determining what is out there.  Hiding asets will put the guy in jail.

These are some ideas.  Feel free to follow up with additional questions.

For your information, the pros and cons of the types of dispute resolution
methods follows.

GOOD LUCK!

Arbitration, Mediation, and Litigation

Arbitration: the referral of a dispute to one or more impartial persons for final and binding determination outside of the judicial system

Benefits of Arbitration:

    Confidential, no public record
    Limited exchange of documentation, information
    Quick, don't have to wait for a court date
    Arbitrators have expertise in the subject matter and are trained in conflict resolution
    Cheaper than litigation
    Preserves business relationships

Negatives of Arbitration

    It's a compromise, no %100 winner
    Complex arbitration can be costly
    If not satisfied, may litigate the arbitration procedure
    Poor results with an unskilled arbitrator
    Both parties must agree to cooperate in the process

Mediation: the process by which parties submit their dispute to a neutral
third party (the mediator) who works with the parties to reach a settlement of their dispute.

Benefits of Mediation:

    Neutral mediator can objectively suggest alternatives not considered
before
    Parties are directly engaged in negotiating the settlement
    Can be quicker than litigation
    Less costly than litigation
    Preserves business relationships
    85% of American Arbitration Association cases mediated find successful solutions

Negatives of Mediation

    may not reach a binding decision
    unskilled mediator

Litigation: using the judicial system to resolve disputes

Benefits of litigation:

    a clear winner and loser
    uses a prescribed set of procedures
    more predictable outcomes
    is final

Negatives of Litigation:

    waiting for court dates can do more harm
    usually more expensive than mediation and arbitration
    part of the public record