united-states
Is it worth starting legal action in this case?
<p>I am a selling VPS (virtual private server) servers online. I am not a company but I report all my income and pay tax (Georgia). Recently one of my customers did not pay 3 invoices and not only that, he also requested refund for one invoice he paid. He said the reason is that he did not use the server. There is no way we can know that and we sell servers per monthly payments regardless if server is used or not. Also our TOS clearly states that there is no refund under any circumstances. One invoice value is $120 and 4 of them are approximately $480. I have our conversation where customer claims he did not use the server but server was online all the time and we spent our resources for 4 consecutive months.
What are my options to take legal action against this man? What are chances of winning it and how much would all that cost? The guy is resident of North Carolina.</p>

<p>Thanks</p>

<p>You do not need an attorney for amounts that small - it could be handled in small claims court. The problem is that you would almost certainly have to travel to North Carolina to sue the customer (see <a href="http://www.nolo.com/legal-encyclopedia/personal-jurisdiction-where-sue-defendant-29560.html" rel="nofollow">personal jurisdiction</a>). The cost of travel alone would probably exceed the value of the judgment, and unfortunately that is not compensable either (you can't sue the customer for the cost of traveling).</p>
