In this post, we discussed the value of a motion for summary judgment in a commercial collection case where the claims litigated relate to failure to pay on a written instrument. We touched on the need for the client to provide declarations in the form of business records. These business records, of course, are inadmissible if hearsay if they are not exceptions to the rule against admissibility of hearsay.
For many types of commercial collection cases, the claims litigated relate to failure to pay on an instrument, i.e., a promissory note, a line of credit, a personal guaranty, or breach of a contract to pay certain amounts. It follows that the goal of litigation is to conduct a minimal amount of written discovery (typically requests for admission being the most important discovery tool) and then move for summary judgment or partial adjudication of the issues.
Now that we have established the value in utilizing a writ of attachment (read our article on the basics of write attachment here), let's take a look at how to use it.
When it comes to the commercial collections process, nothing says "I mean business" like a pre-judgment application for right to attach order and writ of attachment. Successfully utilized, a writ of attachment is one of the best tools for encouraging the debtor(s) towards prompt resolution of a business debt.
One of the difficulties of commercial collection in California is the basic premise that by the time a debt holder has reached the point of being able to collect on the debt, most debtors don't voluntarily pay the judgment. This means that you must employ a variety of strategies to force the debtor to pay on the judgment, including the turnover order.
California is one of the few states that allows for renewal of a money judgment every ten years without any deadline on the number of renewals. One may say that as a California collection attorney, we actually grow old with the judgment debtors. Most lawyers fail to advise their judgment creditor clients that in the 1st 10 years period after the judgment was entered, they should renew the judgment after 5 years. This is a one time opportunity to effectively "compound the interest.