I had a client that defaulted on payment for services rendered. After ignoring me for a year, I sued them in NJ Special Civil, and suddenly they wanted to negotiate.

We reached a verbal agreement a few weeks ago, but they still haven't sent the check. I recorded the conversation in which I clearly stated that my offer was good for X days (one-party consent state).

They still haven't answered the suit, and they will be in default shortly.

I plan on filing for a default judgment ASAP.

I'm just trying to plan a few moves in advance, and I have a few questions:

On what grounds would they be able to vacate the judgment? The signed the registered mail detailing the suit, and I have recorded conversations where they admit freely to their knowledge of it.

If I receive the default judgment would I then be in a position to go after them for the amount in full, despite my prior negotiations?

Is there anything else I could or should do to protect my interests?

Yes, you should have never stopped your law suit, but required them to pay prior to the court date or you go to court and get judgement, after you had the judgement you could have setted fr less

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Originally Posted by Fr_Chuck

Yes, you should have never stoped your law suit, but required them to pay prior to the court date or you go to court and get judgement, after you had the judgement you could have setted fr less

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I never stopped the lawsuit. The default date has not yet arrived, and I clearly told them the offer was good for 10 days, which have almost passed. Furthermore, I recorded this conversation.

I never called the court and told them we had settled, and they could still file an answer if they wanted to do so in lieu of paying me anything at all.

All we have at this point is a verbal agreement to settle, provided they pay within a period that does not extend beyond the default date of the claim.

If they don't pay, send them a letter stating the offer has expired and you will see them in court.

By the way, were they aware you taped the conversation?

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Originally Posted by ScottGem

If they don't pay, send them a letter stating the offer has expired and you will see them in court.

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Thanks for the response.

Sounds good to me, although if they don't send the check within the required number of days, the next day or so they would have defaulted in their response to the claim. As such, I believe the court would award me a judgment based on their failure to answer.

At which point I would have to send them some regular mail notifying them that I got my judgment and proceed to collect. Their only recourse would be to pay me, or try to Vacate the Judgment (appeal), though I fail to see what grounds they would have to do so.

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Originally Posted by ScottGem

By the way, were they aware you taped the conversation?

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No, but it doesn't matter. This is a one-party consent state, and I am that consenting party.

"N.J. Rev. Stat. §2A:156A-4(d) It is lawful to intercept a communication if one is a party to the communication or has received the prior consent of a party to the communication. "

I was a obviously a party to the communication.

They could be responding to the suit as we speak. But if you get a default judgement you will still need to collect.

Just making sure, my next step would have been to check if NJ was a one consent state.

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Originally Posted by ScottGem

They could be responding to the suit as we speak....

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That's definitely in the back of my mind. They are a classless bunch, so I while I don't see the logic in reaching a verbal agreement with me just to go and pay a lawyer to answer, I wouldn't put anything past them.

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Originally Posted by FuriousJorge

I had a client that defaulted on payment for services rendered. After ignoring me for a year, I sued them in NJ Special Civil, and suddenly they wanted to negotiate.

We reached a verbal agreement a few weeks ago, but they still haven't sent the check. I recorded the conversation in which I clearly stated that my offer was good for X days (one-party consent state).

They still haven't answered the suit, and they will be in default shortly.

I plan on filing for a default judgment ASAP.

I'm just trying to plan a few moves in advance, and I have a few questions:

On what grounds would they be able to vacate the judgment? The signed the registered mail detailing the suit, and I have recorded conversations where they admit freely to their knowledge of it.

If I receive the default judgment would I then be in a position to go after them for the amount in full, despite my prior negotiations?

Is there anything else I could or should do to protect my interests?

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Is registered mail sufficient service in your State?

Yes, if you get a Judgment you can pursue it - negotiations are seen as an attempt to resolve a matter and are not binding unless there is an agreement. You don't have that agreement if it was conditioned upon a payment.

All you can do is take your proof to Court and get a Judgment, go from there.