My company is incorporated in the State of Georgia as a LLC
. One of the Consultant (a single member LLC from Wisconsin), after working for 18 months for my Client, started working through our competitor on the same project she was working under our contract
. In fact she has allowed our competitor to represent her while she was on our contract (before the project completion date).
At the end of 18 months, my Client's contract was ready for another 12 months renewal. Due to her
improper action, I lost the contract and incurred a loss. Thought of going after her for non-compete
clause but the "Service Area" to be mentioned in the contract for non-compete was not strong enough to proceed. So I had to drop that idea.
Our Contract terms says: Payments will be processed after receiving following documents: (1) Duly Filled and signed Master Services Agreement, (2) Signed Work Order, and (3) Insurance Certificate. The insurance is for General Liability insurance and workers compensation. She (her LLC) has not provided the insurance certificate.
We have sent two letters to her LLC, well before the due date for last payment stating, she has not
provided the certificate and she has to provide the Certificate of Insurance and must maintain the
required insurance during the term of the agreement. Upon receipt of the certificate, we will process
We didn't receive the insurance certificate for the fact she didn't take insurance at all. So we didn't
release the payment for last invoice (around $20,000). In Sep 2011 she went to a collection agency and the collection agency's attorney has filed a complaint in our county's superior court (in Georgia). My attorney has filed the response, interrogatories and produced the documents. Her attorney has also filed a response for which my attorney filed a response. Finally her attorney submitted another resonse with wrong affidavit (the affidavit was for a different case) and filed a motion for Summary Judgement.
In May 2012, the Judge DENIED the motion for Summary Judgement stating: "Upon consideration
Plaintiff's Motion for Summary Judgement, the record and applicable law, this Court finds that there
remain genuine issues of material fact to be determined by the trier of fact. O.C.G.A. 9-11-56.
Wherefore, Plaintiff's motion for Summary Judgement is hereby DENIED".
Then her attorney requested for non-jury trial and since we denied, now he has filed for jury-trial. The
judge has notified the available date for jury-trial and her attorney has agreed to that date in Oct
My company is not generating any revenue now. Should I proceed with my attorney for jury trial? What are my chances? Is it better to settle before jury trial or any other options like chapter 13? Pls advise.