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How to address a nonpayment issue

On Behalf of | Dec 18, 2023 | Business Litigation

Business transactions often come with their fair share of challenges. One such challenge is the unfortunate nonpayment situation.

When faced with unpaid invoices or services rendered, you must understand the steps involved in business litigation to protect your interests.

Demand letter

The first step of the legal process is to send a demand letter to the party in question. Clearly articulate the details of the nonpayment issue. Reference relevant invoices, contracts or agreements. Include a specific deadline for payment to encourage a timely resolution. In Pennsylvania, adherence to a proper demand letter is often a prerequisite to filing a lawsuit.

Legal claim

If the demand letter does not achieve the desired response, the next step is filing a complaint with the appropriate court. Outline the details of the nonpayment, including the amount owed and the legal basis for your claim under Pennsylvania law. Ensure that your claim is clear and concise. It must also adhere to the specific rules of the court.

In the course of litigation, the other party may file counterclaims. Responding to these counterclaims is a critical aspect of the process. Address each point methodically, providing evidence to refute their claims.

Discovery phase

During the discovery phase, both parties exchange information and evidence relevant to the case. Respond promptly to requests for information and gather proof that supports your position.

Summary judgment and trial

As the case progresses, you may receive a summary judgment. This assessment occurs when one party believes there are no genuine issues of material fact. If the case proceeds to trial, present your matter diligently, referring to the specifics of Pennsylvania law to support your claims.

In 2022, employment and labor disputes were the most common area for business litigation across all surveyed industries. Having a clear understanding of Pennsylvania laws allows you to protect your business interests. This knowledge increases the likelihood of a favorable resolution.