Industry Focus

Packaging & Corrugated Supply Distributors — California B2B Debt Recovery

From custom-printed corrugated to stretch film and protective foam, your margin is gone if the invoice isn't paid. We recover California B2B packaging receivables at 15% contingency — no recovery, no fee.

Six Pain Points We Solve

Custom-printed corrugated written off

Customer logo makes the inventory unresalable. §2709(1)(b) action for the price is the right remedy — most shops plead the wrong count.

Large POs, small margins

A single unpaid $80K run can wipe out a quarter's operating profit. Aggressive 30-day demand is essential.

Seasonal fulfillment customers

Holiday packaging orders invoiced Q4, stretched to Q2 of the following year. Statute and interest preservation matter.

3PL and co-packer disputes

Bill-to / ship-to splits create "not my debt" defenses. Joint-and-several guaranty clauses and §2709 identification protect the seller.

Contract-packaging service fees

Fulfillment, kitting, and co-pack labor charges often disputed separately from goods. Account-stated count ties them together.

Credit application personal guarantees

Most PGs are poorly drafted — missing §2787 language, waivers, or attorney's-fees. We analyze and enforce what's there.

California Legal Framework

AuthorityApplication
Cal. Com. Code §2709(1)(b)Action for the price on goods identified to the contract (custom-printed corrugated, co-branded packaging).
Cal. Com. Code §2709(1)(a)Action for the price on goods accepted by the buyer.
Cal. Com. Code §2706Seller's right to resell and recover the difference, plus §2710 incidentals.
Cal. Com. Code §2710Incidental damages — storage, transportation, commissions on resale.
Cal. CCP §3374-year statute for written contracts, account stated, open book account.
UCC Article 9 / §9509UCC-1 filings on inventory and proceeds when PMSI is timely perfected.
Cal. Civ. Code §1717Bilateral attorney's-fees enforceability.
Cal. Civ. Code §§3287, 328910% prejudgment interest on liquidated sums.
Cal. Bus. & Prof. Code §17200UCL overlay for pattern non-payment schemes.

Estimate Your Recovery at 15% Contingency

At LegalCollects (15%)$11,250
Traditional firm (33%)$24,750
You save$13,500

Three Anonymized California Case Studies

$94,000

Custom-printed corrugated — Orange County CPG brand

9 SKUs with client logos, written off by shop. §2709(1)(b) plead with artwork approvals and delivery confirmations; settled at Day 18 for full invoice plus interest.

$142,000

Stretch film + pallet wrap — Inland Empire 3PL

3PL collapsed ship-to/bill-to after dispute with upstream shipper. Joint-and-several guaranty on credit app + §2709(1)(a) count resolved at Day 23.

$58,000

Protective foam + inserts — LA medical device maker

Customer disputed co-pack labor charges. Account-stated + §2709 + §1717 complaint drafted; paid at Day 16 pre-filing email.

Documentation Checklist

Fee Math — Contingency Advantage

Recovery amountTraditional (33%)LegalCollects (15%)Client savings
$25,000$8,250$3,750$4,500
$75,000$24,750$11,250$13,500
$142,000$46,860$21,300$25,560
$300,000$99,000$45,000$54,000
$500,000$165,000$75,000$90,000

Frequently Asked Questions

How long does recovery take?

Our 30-day demand and escalation sequence resolves the majority of matters before Day 25 filing. Custom-printed corrugated cases with clean §2709(1)(b) pleadings often resolve at the Day 16 pre-filing email.

Do you work on stretch film and commodity packaging?

Yes. Commodity items go under §2709(1)(a) if accepted, or §2706 resale differential if returned. Either way it's a straightforward contract count.

What if the customer disputes the artwork approval?

Email chains, DocuSign audit trails, and print-setup records generally dispose of the artwork defense. §2606 acceptance further strengthens the seller's position once goods ship.

Do you file UCC-1s for us?

Not directly, but we coordinate with your counsel on PMSI timing. A timely UCC-1 dramatically improves outcomes if the customer is heading to insolvency.

What's the minimum claim size?

Most packaging claims we take are $10K+. Under that, small claims court is often more cost-effective for the distributor.

Related Resources

Packaging receivables aging past 90 days?

Submit your credit app, PO, artwork approvals, and invoice. §2709 action for the price on custom print runs; §1717 fees preserved. 15% contingency, attorney-supervised.

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