QUESTION
Can you take a non profit organization to court to reclaim money for goods provided?
Asked on Jul 10th, 2012 on Bankruptcy - New Jersey
More details to this question:
We own a silk screen/sporting goods store and have had a little league organization order thousands of dollars worth of goods and services and then not pay, as they claim they have no money. What would be a good solution to solve this?
13 ANSWERS
Real Estate Attorney serving Williamstown, NJ
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Law Offices of Slotnick & Schwartz
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You certainly can sue the non profit for the debt owed. The big problem is that you can get a judgment that is worthless. Maybe one of the officers ordered the items and you can sue that person.
Answered on Aug 13th, 2012 at 5:50 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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I don't know why you couldn't file the suit and get a judgment. However, how collectible would that be?
Answered on Aug 13th, 2012 at 4:37 PM
If the amount is under $7,500, take the to small claims court after you make a final demand for payment. The fact that they may be a non profit organization does not mean they do not have to pay for goods received or services rendered.
Answered on Aug 13th, 2012 at 4:06 PM
Construction Attorney serving Bloomfield Hills, MI
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Law Offices of Jeffrey Z. Dworin
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You have the right to sue a non profit in court. See if the little league is a non profit entity - e.g. limited liability company or corporation - or an unincorporated association. If the latter, you have rights against the individuals.
Answered on Aug 13th, 2012 at 3:57 PM
Yes. You are allowed to sue non-profits for breach of contract. The more practical issue is whether you can COLLECT on the judgment. I recommend calling an attorney and negotiating a settlement.
Answered on Aug 13th, 2012 at 3:52 PM
Family Attorney serving Henderson, NV
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Harris, Yug & Ohlinger
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Yes. All the same rules and laws, including typical breach of contract type claims, apply against a non-profit. There is no defense for being charitable if you didn't make a voluntary donation to them.
Answered on Aug 13th, 2012 at 3:46 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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Take them to court ... if its less than $5K wait until september 1 when the limit on recovery in small claims rises to $5K..
Answered on Aug 13th, 2012 at 3:45 PM
Administrative Law Attorney serving Dowagiac, MI
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Jane Phillipson Wilson, Attorney at Law
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Their tax status is irrelevant. A lawsuit will be expensive, but there are other, legal, alternatives.
Answered on Aug 13th, 2012 at 3:40 PM
You can sue them, you can negotiate the debt, you can do whatever you want. You need to consider that suing the Little League might not make your business real profitable, but they're not special in this area just because they're nonproft.
Answered on Aug 13th, 2012 at 3:29 PM
Dennis P. Mikko
You may benefit from some sort of community mediation prior to taking legal action. If the Little League really has no money, you may have a problem collecting. Nothing would prohibit you from suing the Little League though.
Answered on Aug 13th, 2012 at 3:26 PM
Brett Alexander Pedersen
Yes, you can sue, don't know whether you can collect, but you may want to try.
Answered on Aug 13th, 2012 at 3:25 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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The law gives non-profits no right to steal from their vendors.
Answered on Aug 13th, 2012 at 3:23 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Yes you can sue, but collecting a judgment may be difficult. As they do not have profits, you would have to find out what assets they have for attachment.
Answered on Aug 07th, 2012 at 12:00 PM