Would you/can you go to small claims if copies are unpaid?

I'm a little unsure as to whether we can take an agency to small claims if the copy is unpaid.

If the original & 1 is unpaid, then of course we can.

But since most (90%)  of the agencies out there tell you copies are paid when they are paid, can we really take them to small claims for unpaid copies, or is it just a matter of wait and see no matter how long it takes?

It's an interesting topic that you bring up. 

First, in your scenario, are you saying the agency HAS been paid by the client for the certified copy, however, they have not paid your commission?  Or are you saying they have NOT been paid by the client yet?

Clearly, if they agency has not been paid then no sale has occurred.  And if no sale has occurred, then there is no commission to the independent contractor.  End of story.  If the agency indeed has been paid on the certified copy, then obviously they have an obligation to pay your commission in a timely manner.

I could only imagine having to pay in advance for copy orders that never materialize.  You wouldn’t believe what some attorneys try to do to duck and weave their way out of copy orders post-deposition.  It truly is incredible.  From a business model setup, I think it’s only prudent and fiscally feasible to pay reporters once copy orders have been paid by clients.  Otherwise, you might have to deal with charge backs – copy orders that are paid in advance to the reporter but which later never get paid by the client -- which might get unpleasant. 

So to answer your question directly… Unfortunately,  I would say that it is -- as you aptly wrote – “a matter of wait and see no matter how long it takes.”
 

By the way, I LOVE your business model, but I do pay my reporters upfront for copies.  Eventually that may change, making sure they have some 'skin' in the game of the actual business side of reporting, but in the mean time, they get paid for it all..upfront.

My policy is to charge them back if I haven't been paid in 10 months.  Has happened very seldom that I have charged them back for copies unpaid.

Getting paid nowadays for the 0+1..now that's another story....

Todd,

No, my court reporters do not understand the market place, nor do that understand that they are FORTUNATE when I pay them in advance.

They have absolutely no concept of the business side of the house.

I am in San Jose....by the way.     All this means is I am a good little saver and take a lot less salary so I can make sure all are paid upfront.

Hey,

I have my firm, and, if people owe me or my reporters money for anything, if it is a big amount, off to small claims court I go.

If the attorney is from out of town it just means, if you file in small claims court, they have to travel to the place where the job was taken for their small claims court date.  So those are easier to collect.

If you just fill out the small claims paperwork and fax it to the attorney, usually you get a call at 9:00 a.m. the very next day about when you will have your check, and you don't even have to file. 

Once they see the paperwork filled out, they know immediately you're ready to file it, and you do get back what you fork out to file it and pay the process server to serve them. 

At that point, the attorney knows we're going to get our costs plus what is owed, and they somehow see the light.

If it isn't too big, I'll subtract my 25% from the total invoice, and I'll pay the court reporter -- if I don't want to sue or if it is a friend or a new client I'd like to keep.  In that case, I pay out of my $ and I wait to get paid.

Every reporter who works helping me can rebill nicely after 30 days if they want.  They all know I pay as I should, but, if they wondered that there was tomfoolery going on, they could send a nice request like,  "Hey, I show this outstanding.  Can you check on it when you have a minute?"

I have had it happen to me where I did overflow work, and, when I got paid, I didn't know it.  I trusted the firm owner.  Whenever that particular firm owner I guess had paid their own bills and had extra $, then I'd get a check.  I just wouldn't have known it had even been paid earlier.

So everyone needs to keep up with what you show outstanding and what has paid.  Sometimes mistakes are just made, and, if you don't know what you should be getting, you may miss a check purely by accident.

If you are working somewhere and they won't tell you what came in for you, my advice is to find a different firm to work for -- there is probably foolishness going on with your $.

Never hire a collection company unless you've tried the small claims paperwork fax first, because they take a big chunk out of your $ for their service.  Small claims court works, and you don't lose a % of the $ because you can do it yourself.

Great question.  Happy, safe 4th of July, Carol DeBee Martin

The firm I work for (I'm in accounts receivable) has just this year started doing just what you do - cut to the chase and go quickly to small claims court.  Meaning, for us, after the invoice is 90 days outstanding.  And you are right, frequently just the threat gets us paid quickly.  We've also found it extremely effective, and we ARE willing to actually take the case to court, and have done so several times.  No last minute settlements outside in the hallway either - unless it's full payment plus costs. 

On a personal note, I really feel that when an agency pursues clients that think they can get our work and product for next-to-nothing and we stand and fight for full payment, that we are winning not just for us but for all court reporters!

On the copies issue, our firm pays when we are paid.  All the reporters who work for us understand that and cooperate wonderfully.  A great group of people!