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What legal actions can be taken against a customer who has not paid their invoice for services rendered in Ohio?

Picture of Chris Battis By   ·  1 minute read

As a lawyer, I can advise you on the legal actions that can be taken against a customer who has not paid their invoice for services rendered in Ohio.

Under Ohio law, a business owner can take several legal actions against a customer who fails to pay an invoice for services rendered. The following are some of the legal options available:

  1. Send a demand letter: The first step is to send a demand letter to the customer, informing them of the unpaid invoice and demanding payment within a specific time frame. The letter should clearly state the details of the unpaid invoice, including the amount due and the date of service.
  2. File a lawsuit: If the customer fails to respond or refuses to pay, the business owner can file a lawsuit in court. The lawsuit will seek to recover the unpaid amount, as well as any legal fees or court costs incurred. In Ohio, the statute of limitations for contract disputes is six years from the date of the breach.
  3. File a lien: Another legal option is to file a mechanic’s lien against the customer’s property. This will allow the business owner to place a claim on the customer’s property until payment is made. In Ohio, a mechanic’s lien must be filed within 75 days of the last date of service.
  4. Hire a collection agency: A business owner can also hire a collection agency to recover the unpaid amount. The collection agency will work on behalf of the business owner to recover the debt, but may charge a fee for their services.

It is important to note that there may be limitations or exceptions to the legal actions mentioned above. For example, if the customer has filed for bankruptcy, the business owner may need to take specific steps to recover payment. It is recommended to seek advice from a licensed attorney to determine the best course of action in such situations.

In summary, a business owner in Ohio has several legal options available to recover payment for services rendered if a customer fails to pay. These options include sending a demand letter, filing a lawsuit, filing a lien, or hiring a collection agency. It is important to consider any limitations or exceptions and seek professional advice as needed.