Yes, the rule of thumb is that you should let your attorney decide whether the claim is worth pursuing. Then you should decide whether or not to actually pursue it based on the advice of counsel.
So much of this decision rests on the type of claim you have and the evidence. Call an attorney and get a consultation.
It never hurts to consult with an attorney first even for a minimal consultation fee. You could negotiate a cap on the legal fees. Some lawyers, depending on the case, would be willing to do it on a capped fee basis plus a percentage of whatever they collect. You may also be able to get a contingency fee arrangement which means a percentage of whatever the lawyer can collect, which means that no matter what you will be receiving money from the case provided the lawyer can collect.
There is really no rule of thumb as it relates to determining when to sue.
Your first avenue is to check with an attorney to ask that question.
Typically, asking advice from an attorney on such a matter will fall into
the time for a free consultation. Attorneys like to charge for their time.
However, we are also in the business of helping people out with making
decisions and planning a course of action for you.
Typically, drawn out litigation for a $12,000.00 claim does not make fiscal
sense. However, there are a number of factors that you can consider in
making the decision to pursue your claim.
1. Does the person that owes you money have assets or a job?
2. Does the claim fall under a category that allows for recovery of
attorney fees if you are successful?
3. Which court house is it in? Does the attorney have a lot of cases
in that courthouse which would make it worthwhile to take it on a reduced
fee?
4. Will the person that owes you money defend the case?
5. Can you find an attorney that will do it on a flat fee or
contingency?
6. Does the person that owes you money have a position which if sued
would embarrass them in front of his peers?
7. Are the issues simple enough that the matter can go to trial quickly
without extensive discovery?
An attorney can also send a letter or make a phone call to the person that
owes you money at a relatively cheap price to inspire the person to pay.
Perhaps there can be a settlement that is entered into.
The hard part on the smaller claim is not getting the judgment. The hard
part is collecting on the judgment. The good thing is once you get a
judgment, it starts earning interest at nine percent which is good because
if the person does not pay, your money grows and at some point that person
may want to buy a house or improve their credit and cannot do it without
your help. Also, it is not worth it for the person to bankrupt over 12k.
In any event, this gives you something to think about. If you need some
other
Philip Fornaro
Law Offices of Philip M. Fornaro & Associates, Ltd.
4830 W. Butterfield Road
Hillside, IL 60162
(708) 384-0800
(708) 544-8655 (fax)
philip@fornarolaw.com
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Don't file if: its against a good recurring customer, projected litigation costs exceed $12,000 and/or chance of success is less than 70%. Assuming liability is toss-up, settle it for $6000. E
Eric J. Emerson - Partner
Tressler, LLP
Transportation Practice Group
233 S. Wacker Drive
Chicago, IL 60606
eemerson@tresslerllp.com
312.627.4010 (office)
312.758.4301 (mobile)
Does your claim allow you to recover attorney fees if you are successful?? If not, you may be better off financially handling the case yourself in small claims court. Definitely get a consult -and dont pay for it.
Good things to think about. We would not recover attorney fees.