Can a default judgement in Canada be enforced against my corporation in NC successfully?
forrestservices asked:
Our company was scammed by a company (JVS Powersports) that went bankrupt after they sent us product to distribute after they sold the product. They never sold it, had it re-factored five times through five different finance companies, on the fifth finance company, they went bankrupt. So, they went bankrupt with the money that the finance company gave them to factor the product that they shipped to us, but they never sold. Now, the finance company has a suit against us in Canada. My lawyers aren’t too worried here. The finance company emailed me yesterday, saying that after the 20th of this month, they will have the Canada default judgement filed in NC, and will begin the collection process. My lawyers say they will have a hard time proving they have jurisdiction over us. But, it’s not impossible. Should I be worried? What can they do to us? I have volunteered to give the product back, because I have had it in storage these five years. They don’t want the product back. They only want money, because they are a finance company, not the original scammer JVS company that conned us. I have volunteered to sell them at a cheap rate, because these now are new, but out of warranty, and there is no where to buy replacement parts from. (These are 64 portable generators). If I sold them each for $300, I could probably give them $12K, but they say $50K is as low as they will take. Help!
Johna
Our company was scammed by a company (JVS Powersports) that went bankrupt after they sent us product to distribute after they sold the product. They never sold it, had it re-factored five times through five different finance companies, on the fifth finance company, they went bankrupt. So, they went bankrupt with the money that the finance company gave them to factor the product that they shipped to us, but they never sold. Now, the finance company has a suit against us in Canada. My lawyers aren’t too worried here. The finance company emailed me yesterday, saying that after the 20th of this month, they will have the Canada default judgement filed in NC, and will begin the collection process. My lawyers say they will have a hard time proving they have jurisdiction over us. But, it’s not impossible. Should I be worried? What can they do to us? I have volunteered to give the product back, because I have had it in storage these five years. They don’t want the product back. They only want money, because they are a finance company, not the original scammer JVS company that conned us. I have volunteered to sell them at a cheap rate, because these now are new, but out of warranty, and there is no where to buy replacement parts from. (These are 64 portable generators). If I sold them each for $300, I could probably give them $12K, but they say $50K is as low as they will take. Help!
Johna
January 7th, 2010 at 9:19 pm
Kristin
Your lawyers are technically correct. A Canadian judgement would be rather difficult to enforce in the US, UNLESS an NC judge agrees to uphold the Canadian decision. Then you’d have reason to sweat.
That being said, I would be mainly concerned if you still continue to do business in or with Canada. It’s remote, but still a possiblility that a Canadian court could order a garnishment of some sort which is leaving Canada intended for you.
There is also the possibility of a lien against your business or vehicles that could be filed.
My advice is to let your attorneys handle the matter.
January 10th, 2010 at 8:03 pm
Lucius
I don’t really know Canadian law, but my question is, how can the finance company get a default judgment against you in Canada without having properly served you a summons there?
The finance company might be bluffing. Why would they settle if they have a sure bet on a default judgment?