Cincinnati Small Business / B2B Disputes Demand Letter

Start with direct contact requesting payment. If unsuccessful, send a formal demand letter via certified mail giving 10-30 days to pay. If still unpaid, consider small claims court (up to $6,000), which is cost-effective for modest amounts. For larger amounts, file in Municipal Court (up to $15,000) or Court of Common Pleas. After obtaining judgment, use Ohio's collection tools: bank account garnishment, wage garnishment (25% of disposable earnings), judgment liens on property, and debtor examinations to find assets. Interest accrues at the judgment rate (currently variable but typically around 4-5%).

Yes, you can sue for breach of contract or on an open account. For services, prove: what services you agreed to provide, that you performed the services, the agreed price (or reasonable value if no set price), and that the customer hasn't paid. Document your work with contracts, invoices, time records, emails, and completion evidence. Even without a written contract, you can sue under quantum meruit for the reasonable value of services provided. File in the appropriate court based on the amount. Consider whether attorney's fees are recoverable under your contract or Ohio law.

Essential contract terms include: parties' legal names and contact information, specific description of goods/services, price and payment terms (including late fees), delivery/performance deadlines, warranty provisions or disclaimers, limitation of liability, dispute resolution procedures (mediation, arbitration, or court), attorney's fees provision, venue and choice of law, integration clause (the contract is the entire agreement), and signature blocks. For significant transactions, have an attorney review. Ohio requires certain contracts to be in writing under the Statute of Frauds.

Small claims court (up to $6,000) is designed for self-representation and is often the best choice for modest disputes. Advantages: low filing fees (~$76), quick resolution, simple procedures. Limitations: can't get injunctions, limited discovery, corporations must have an attorney. Consider hiring a lawyer if: the amount exceeds $6,000, you need an injunction, the case is complex, significant discovery is needed, or the business relationship requires professional representation. Many attorneys offer free consultations to help you decide.

Review your partnership agreement for dispute resolution procedures. Common claims include breach of fiduciary duty, breach of partnership agreement, accounting, and dissolution. Ohio Uniform Partnership Act (ORC 1776) governs. Options include: negotiation, mediation (often required by agreement), arbitration (if contractually required), or litigation. You may seek damages, accounting of partnership affairs, or judicial dissolution. Partnership disputes can be complex - consider consulting an attorney. If the partnership is an LLC, Ohio LLC Act (ORC 1705) may apply with different procedures.

Preventive measures include: credit applications and credit checks before extending credit, clear payment terms in contracts, progress payments for large projects, personal guarantees from business owners, security interests (UCC filings) in goods sold, mechanics' liens for construction work, and prompt invoicing with follow-up. When problems arise: stop extending additional credit immediately, contact customer promptly about overdue payments, implement late fees per your contract, and pursue collection before debts age. Consider requiring prepayment or COD for customers with poor payment history.

Yes, if you provided labor or materials that improved real property. Ohio's mechanics' lien law (ORC 1311) allows contractors, subcontractors, and suppliers to lien property for unpaid work. Requirements vary by party type: general contractors have 75 days after completion to file, subcontractors and suppliers may need to serve a Notice of Furnishing to preserve rights. File an Affidavit for Mechanic's Lien with the Hamilton County Recorder within the deadline. The lien attaches to the property and can be foreclosed within 6 years. Lien rights are powerful but procedure-intensive - consider consulting an attorney.

Under Ohio law, recoverable damages include: compensatory damages (direct losses, consequential damages if foreseeable), lost profits (if provable with reasonable certainty), interest (from due date or judgment date), attorney's fees (if contractually provided or statutory basis), and costs of litigation. Punitive damages require proof of malice, fraud, or oppression. The UCC provides specific remedies for goods transactions including cover damages, market-price damages, and incidental/consequential damages. Document all damages carefully and be prepared to prove them with evidence.