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Thread: Non payment & legal advice

  1. #1
    Junior Member
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    Jan 2016
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    Non payment & legal advice

    Hi all - I need some advice please...

    I started a business in January and one of my clients was a company I worked for previously. The contract was based on month to month as a registered company (not in my personal capacity) with a notice period of 30 days either way. Payment terms - upon presentation of invoice. One of the functions was managing the company fleet speeding fines and I was also listed as the company proxy on AARTO.

    During the early part of March, it became very apparent they were not planning on paying or at least planned on delaying payment. There are a number of facts I base this statement on but two of the most profound were all staff salaries were dropped by a third two days after we had our early March meeting. During this meeting there was also a commitment from the owners to deduct the outstanding speeding fines due from staff who were leaving. These deductions would be used to pay the fines due. When I followed up on this, the responsible director denied any knowledge of this arrangement. I resigned immediately as at that point there were in there region of R24k's worth outstanding fines against my ID number.

    I have since not been paid for the Jan and Feb fees and my question is the following: As the totals due are around R15k for each month, can I go through the small claims court? Is my understanding correct in:
    1. that the small claims court are only for individuals and not companies,
    2. if companies can claim, can I apply for 2 separate claims (being Jan & Feb),
    3. what are my options if I cannot go through the small claims court. is there a small business legal assistance option such as the small claims court?

    Many thanks


  2. #2
    Gold Member Phil Cooper's Avatar
    Join Date
    Nov 2010
    Thanked 170 Times in 118 Posts
    Companies cannot use small claims courts, but individuals can - even against companies.

  3. Thanks given for this post:

    MariliseM (11-May-16)

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