QUESTION
If contract states arbitration, can I go to small claims court instead?
Asked on May 06th, 2014 on Contracts - Massachusetts
More details to this question:
I have a consulting contract in place with a client who hasn't paid final two invoices. They've become unresponsive. The contract states we'd move forward with arbitration if there's a dispute. I believe I have a solid case as all work completed is heavily documented; however, I'd prefer to go to small claims because the cost of arbitration is $1500 up front. Small claims is $150. Client is in breach of contract. I am not.
1 ANSWER
No, but you have little to lose by doing so. I'm not familiar with Massachusetts law, but if it is like New York, the other side would have a certain period of time after they were served in the small claims action to assert the defense of an arbitration agreement. If they did so, they would win (unless you have some basis for invalidating the arbitration clause) and you would have to start an arbitration, but they may choose not to do so for the same reason you don't want to arbitrate. If they don't raise that defense in a timely fashion, the matter would be litigated in small claims court.
Answered on May 06th, 2014 at 5:42 PM