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CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10244
Experience:  Civil litigation attorney for individuals and businesses.
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We lent $10,000 to a non-profit Animal Sanctuary to pay for

Customer Question

We lent $10,000 to a non-profit Animal Sanctuary to pay for food for their animals. They were to pay the loan back in full 14 days later, as they were expecting grant money to come through.
When the grant came through, they decided to spend it on something else, and it has now been 6 months with not even a part of it paid back. We have tried to make payment arrangements with them with no success. We did sign an agreement with them, stating the amount and 14 day deadline.
What can we do?
Submitted: 1 year ago.
Category: Legal
Expert:  CalAttorney2 replied 1 year ago.

Hello, My name is ***** ***** I will assist you today. Please give me a few minutes to write a response and identify any additional resources for you.

Expert:  CalAttorney2 replied 1 year ago.

I am very sorry to learn of this situation.

Your remedy here is to sue the sanctuary for "breach of contract".

You do not give the state where this contract took place, the law varies greatly depending on where you are as to whether or not you can use small claims court for this (if you can use small claims court it makes a huge difference because it is faster, cheaper, and you do not need a lawyer. If you cannot use small claims court, you can still sue for the full amount, but it takes longer, the procedure is more detailed, and most parties will use a lawyer (although you are not required to do so).

For a list of small claims jurisdictions by state, see:

Customer: replied 1 year ago.
We are in CA
Customer: replied 1 year ago.
Is the above contract one that will hold up in court? Also, in CA would we be able to use small claims? There is not an interest rate stated, so do I ask for one, or just ask for the $10K back?
Expert:  CalAttorney2 replied 1 year ago.

California has a $10,000.00 small claims jurisdictional limit, and the California Courts have an extremely helpful small claims self help site that has all of the documents you need, in addition to helpful information to walk you through the process.


Expert:  CalAttorney2 replied 1 year ago.

I cannot review your contract for you (you need a local attorney to do that).

But I can tell you that without an interest rate being specified, the court will not insert one for you - so you will be limited to just recovering the $10,000.00.

However, once the judgment is entered, the judgment will accrue interest "at the maximum legal rate" (10% per annum simple interest) until it is paid in full.