Unpaid merchandise

UPDATED: Oct 2, 2022

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Unpaid merchandise

I have a wholesale clothing business. I recently
delivered 12000 worth merchandise to my clients
retail store, but he refused to pay all of it. I was going
to pick up the merchandise but he is closing the
business and his store is empty – my merchandises
are all gone. What would be the best actions I can

Asked on August 28, 2019 under Business Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

All you can do is sue him for the value of the merchadise that he took without paying. Legally, based on what you write, his liability is clear: you can't take another's merchandise without paying for it. Practically, however, if the store was an LLC or corporation, you can only sue the store itself, not the owner personally; if the LLC or corporation is insolvent, out of business with no asserts, has been dissolved, went bankruptcy etc., then even if you win, you won't get any money--you can't get money where there is none, and a judgment doesn't make money appear where there isn't any. If the store was not an LLC or corporation, however, you can sue the owner personally.
A lawsuit is the only way you may get compensation.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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