Legal Issue: $425K Contract Dispute Resolved in 67 Days—Without Stepping Into Court
- Industry: SaaS/Technology Services
- Debt Amount: $425,000
- Age: 90 days past due
01 | Problem
02 | Solution
HMH Legal’s bilingual attorneys reviewed both the contract and the actual service delivery records. During a facilitated meeting in Mexico City:
- We presented documentation proving SLA compliance based on the contract’s actual language
- Identified that 80% of claimed “violations” were based on verbal expectations never formalized in writing
- Offered mediation to resolve the legitimate 20% of disputed services
Rather than aggressive litigation, we positioned resolution as mutually beneficial—the client needed the software company for ongoing operations, and our cultural understanding helped them save face while making payment.
03 | Result
- Recovered: $382,000 (90% of debt)
- Timeline: 67 days from engagement to settlement
- Litigation avoided: Saved 18+ months and $150,000+ in legal costs
- Prevention implemented: Drafted new master service agreement with proper Mexican legal provisions
The software company now uses our reviewed contract templates for all Mexican clients, preventing future disputes. They’ve signed four additional Mexican clients using the improved agreements.
"Before working with them, I had some anxiety about doing business in Mexico, as I felt I didn’t fully understand the potential risks involved. They did a great job revamping our documentation, but what really impressed me was the time and effort they spent helping our local credit department “sell” these new documents internally to the sales team, many of whom were initially apprehensive the stricter docs might hinder sales. HMH allayed those fears, and now, knowing that we now have a strong set of documents for credit sales, it has taken away a lot of the concern about credit risk. We now have confidence in granting or increasing credit knowing that we have the necessary tools to fully protect the company’s interests."
Services
Our services in Secured Transactions and Litigation early on of the sales process or upon negotiations or restructure of a loan or debt, are key to prevent or properly address a problem situation, as the one pointed out.
