Contractor in St. Thomas, Ontario has not paid us for a material supply, dated 12/08/2022. It is now almost over 120 days. Our terms are net 30 after delivery. We do not have any offices or presence in Canada. Merely export our Hangar Doors to customers in Canada.
Wisconsin manufacturers with a global reach confront this situation and there are payment solution options to explore. Generally, we examine the relationship details relating to the Canadian contractor, the contract itself, and the performance/delivery details. Leveraging the facts and law can create pre-suit leverage to negotiate from strength without having to resort to filing a lawsuit. In terms of strategy, there are approximately twenty questions to answer in terms determing the best pathway. If a lawsuit is necessary, Wisconsin courts follow a 3-step analysis to determine whether a court has personal jurisdiction over an out-of-state defendant including determining whether the foreign entity's contacts with Wisconsin subject the foreign entity defendant to jurisdiction under Wisconsin's long-arm statute of Wis. Stat. Sec. 801.05 and determining whether exercise of jurisdiction complies with due process under the U.S. Constitution. The good news is that there is legal precedent for this type of situation and payment collection can be viable without having a physical office or physical presence in the country where the goods/supplies were delivered. Examining the details of a contractor's contacts with you/your order and its contacts with Wisconsin are important considerations. If you wish to confidentially discuss your situation, please call me at 715-573-2077 or email me and include your contact information.
This is a question of where you have to bring the collection actions. Ordinarily, an action needs to be brought in the jurisdiction where the defendant resides. That would be Canada. To do so, you’d need to use an attorney licensed to practice in that jurisdiction and you’d have to be complying with Canadian law.
That said, if you’re going to conduct international business, you should be working with an attorney versed in international trade. I suspect you have recourse, but it may not be in a Wisconsin court.