Where is the rest of the payment?
Besides dealing with debtors who either do not pay or dispute a claim, it also frequently happens that debtors do not pay the full amount that was agreed to in the first place. This happened to an Italian manufacturer of industrial machines, who supplied products to a German legal entity. When receiving the payment, our client only received a partial amount rather than the full payment.
After several demand letters sent by our client, the situation remained unresolved, with no reaction from the debtor whatsoever. Our client was not entirely convinced legal action would be the most suitable option and was ready to write off the debt. That’s when the German client decided to transfer the case to our Italian Desk.
Having studied the matter and investigating the debtor’s legal entity, we advised the client to commence a lawsuit in Italy against the debtor. Due to the considerable amount of the claim and because the goods had already been delivered to Italy, we believed our client had a solid chance of recovering their payment.
Our lawyers at the Italian desk obtained an order of payment that was immediately enforceable if not paid. The debtor was informed, who then made the first substantial payment while agreeing to a settlement. Understanding the severity of the consequences if not paid, the debtor also agreed to pay the entire amount of the debt including interests and costs. We were then able to abandon legal action and enforcement, saving costs for our client while maximizing their outcome.
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Cross border cases may seem more complicated since you’re dealing with different rules and regulations. But with our native in-house lawyers, our Italian lawyers have the knowledge and experience dealing with local procedures. If your debtor has left you in a similar position, contact us today and find out what we can do for you.