This Small Claims Trial will be held in Alabama:

I recently had an ex-friend served for a loan of $500.00 that only carried a verbal agreement to repay (the agreement was made during the relationship, prior to making the loan). Prior to filing the summons an attorney was consulted and attempted to collect the unpaid loan as a courtesy due to the small amount (to no avail) and a certified final demand payment letter was sent to the individual by me. Also a barrage of emails were exchanged regarding the loan. While organizing my receipts, atty letters to the defendant, notarized letters and emails in preparation of the small claims trial - as the defendant now denys owing the money and states his reason as no more than harassment by me - I read one email in which I sent to the defendant in the heated exchanges of emails which stated, "I have decided to cut my losses because it is apparent that you will not repay me the money in full that was loaned to help you." However, the certified final demand payment letter and attorney's letters followed that particular email correspondence.

Question: Does that one statement turn the loan into a gift? And how would I address the statement in the email should the defendant show up in court and present that particular email as his defense?

I am not betting that he will remember the email but I don't put anything past him. I've realized that even with documentation, once people start to be dishonest, they tend to continue to lie and he is that type of individual to hold onto his lie until the very end & use anything to help keep his lie afloat.

Thank you,

Novice Plaintiff

You can tell the Judge this…

Judge, It was a loan, that email clearly showed how frustrated I was at trying to collect this money from him.

And at that point, I thought it would just be more aggravation that it would be worth to try and sue him for it.

But then I changed my mind after talking with a friend who said going to small claims court isn't so bad.

He owes me this money Judge.

No, the email does not turn the loan into a gift. If you are asked about that statement at trial you can state that it was your attempt at achieving some sort of settlement with the defendant. Since the defendant failed to respond you are proceeding with the action for the full amount.

No, and of course a verbal contract is a contract still very legal and still very binding, just a little harder to prove.

Sound like they will have to pay when they get to court

Even with that statement in the email that you are discharging the contract, it is still not a legal way to discharge a contract. So you should be good :)

Quote:

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Originally Posted by Noviceplaintiff

... one email ... stated, "I have decided to cut my losses because it is apparent that you will not repay me the money in full that was loaned to help you." ...
Question: Does that one statement turn the loan into a gift? ...

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I don't see how it does. The part about cutting losses? Ambiguous at best.