You did the work. You delivered what was agreed. And now the client isn’t paying. Maybe they’re ignoring your invoices. Maybe they’re disputing the amount without any real basis. Maybe they’ve gone quiet entirely. Whatever the reason, nonpayment is one of the most frustrating situations a business owner can face, and one of the most common.
The good news is you’re not without options. Alabama law gives businesses real tools to recover what they’re owed, but how you use those tools matters.
Before anything else, pull out the agreement and read it carefully. What does it say about payment terms, late fees, and dispute resolution? Does it include an attorney’s fees provision? Is there a specific process the client was supposed to follow if they wanted to contest the work?
Understanding exactly what the contract requires, from both sides, shapes every step that follows. If the client claims they’re withholding payment because of a performance issue on your end, the contract language often determines whether that’s a legitimate defense or just a delay tactic.
Gather your documentation now, before memories fade and records get harder to find. That means:
Strong documentation makes your position much harder to challenge. It also tells a clear story if the dispute eventually ends up in front of a judge or arbitrator.
If informal follow-ups haven’t worked, a formal written demand is usually the next step. This isn’t the same as another reminder email. It’s a clear, documented communication that states the amount owed, references the contract, sets a specific deadline for payment, and makes clear that legal action will follow if the debt isn’t resolved.
Some clients pay once they realize you’re serious. Others don’t. Either way, sending a formal demand creates a paper trail that demonstrates you made a good-faith effort to resolve the dispute before escalating.
A Montgomery contract dispute lawyer can draft or review that demand to make sure it’s legally sound and doesn’t inadvertently waive any of your rights in the process.
If the demand doesn’t produce results, you’ve got several avenues depending on the amount involved and the nature of the dispute.
Alabama small claims court handles cases up to $6,000 and is designed to be accessible without an attorney, though legal guidance still helps. For larger amounts, circuit court is where contract disputes typically land. In either venue, you’ll need to prove the existence of the contract, that you performed your obligations, and that the client failed to pay what was due.
Beyond filing suit, Alabama law also allows for the recovery of attorney’s fees in some contract disputes, particularly when the contract itself includes a fee-shifting provision or when the nonpayment was part of a broader fraudulent scheme.
Alabama’s statute of limitations for written contract claims is six years from the date of breach. Oral agreements get a shorter window. That might sound like plenty of time, but evidence degrades, witnesses become harder to locate, and businesses sometimes put off pursuing a claim until the practical ability to win it has eroded.
Acting promptly also sends a message. Clients who know you won’t let a debt slide are less likely to try it in the first place.
Bachus, Brom & Taylor, LLC works with Alabama businesses at every stage of a payment dispute, from drafting the initial demand to representing clients in court when negotiation doesn’t get the job done. If a client is refusing to pay what they owe, reach out to a Montgomery contract dispute lawyer to talk through your situation and figure out the most effective path to recovery.
