You have the right to sue. The likely place would be in the magiesterial district justice (small claims court). The limit for cases that can be brought there is $12,000.00. However, please note that any one can sue any one at any time for any thing. Simply because you sue doesn't mean you will get paid. To the contrary, you could end up being out more money for costs and recover nothing.
The case is based in contract law. But the essential elements of a contract must exist for it to be enforceable. Those generally are amount, time, and place. The amount is fine, but when was it to be repaid? Was there interest? What were the penalties for failure to repay? How you were to be repaid? The other person may simply claim it was a gift or the 2 of you agreed it could be paid back whenever he or she had the funds to do it. A gift is not a loan and lack of definite repayment terms may make it unenforceable.
Even if you win, it is another matter to actually recover anything. The other person may appeal for a few hundred dollars and you will then have to file a new complaint in a new, more complicated court. Or they may simply not pay the judgment amount, and you will be forced to file for execution which will cost more money. The other person may have no assets, they may be exempt, or they may file bankruptcy.
So, while you can enforce your rights in theory, be prepared for the worst case scenario.
Answered on Apr 04th, 2013 at 8:06 AM