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Ely
Ely, Counselor at Law
Category: Consumer Protection Law
Satisfied Customers: 102584
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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My company in Texas has sold a piece of equipment to a

Customer Question

My company in Texas has sold a piece of equipment to a customer in New Mexico state for around $10,000. After 8 months, customer is complaining about a problem with the equipment. We tried sending a technician to check the equipment, but customer dis not allowed access to the equipment. We asked the customer to return the equipment for repair. He does not want to do that.
He hired an attorney in New Mexico state and we received a letter from court (Notice of Hearing). It says that if we do not appear in the court, we will receive a default judgement.
My question is if a default judgement in New Mexico be enforced in Texas?
I am CFO with the company and this letter is being directed to me. Company is a corporation. Should I ignore this letter? Does it affect my credit history? Can they collect in Texas?
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Ely replied 1 year ago.
Hello and welcome to JustAnswer.
I am sorry to hear about this situation.
My question is if a default judgement in New Mexico be enforced in Texas?
Yes. Under the Full Faith and Credit Clause of the US Constitution, a judgment from NM can be enforced in TX relatively easy. So yes, this is possible if they receive a default judgment.
Should I ignore this letter?
I would not. If they do get a default judgment, they may very well enforce it in Texas.
Does it affect my credit history? Can they collect in Texas?
If the judgment would be against the company, then it would not affect you personally. However they can try to seize company assets, bank accounts, and/or attach liens on property.
So it is best to retain counsel in NM to file a proper Answer and to fight the suit, if possible.
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Expert:  Ely replied 1 year ago.
Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never responded or replied positively. I am simply touching base. Let me know. Thanks!