When Customers Can't Pay: Workouts, Stipulated Judgments, and the Lessons of Lakeshore
When a customer falls behind, creditors face difficult decisions. Do you extend more credit, demand payment, negotiate a workout, or pursue collection? And if you agree to a payment plan, how do you make sure the agreement is enforceable when the customer defaults again?
In Lakeshore Investment LLC v. NOW Solutions, Inc., a California Court of Appeal overturned a $1.5 million stipulated judgment, finding that the default provision constituted an unenforceable penalty. The decision serves as an important reminder that even carefully negotiated settlement agreements can leave creditors exposed if they are not properly structured.
This practical webinar goes beyond Lakeshore to explore strategies for managing financially distressed customers, protecting existing creditor rights, and negotiating enforceable repayment and forbearance agreements. Drawing on Lakeshore and related decisions, including Gormley, Jade Fashion, Imani, and Purcell, Christopher Ng will explain the distinction between enforceable conditional discounts and unlawful penalties, common mistakes in workout agreements, and the legal and practical tools available when a customer fails to honor its obligations.
Attendees will leave with actionable guidance on recognizing warning signs, negotiating payment arrangements, preserving leverage, and improving their chances of getting paid, without inadvertently compromising their rights.
Date & Time
01/14/2027
Start Time: 8:30 AM PT
End Time: 9:30 AM PT
Location
Webinar
Sponsor
NACM Commercial Services
Instructor:
Christopher E Ng
Christopher E Ng is the managing partner of Gibbs Giden Locher Turner Senet & Wittbrodt, LLP. He is a member of the firm’s Business and Commercial Law and Construction Law Departments where he primarily represents private and publicly-held companies in a wide range of business, commercial and construction transactions and disputes. Chris, a member of the State Bar of California and District of Columbia and licensed to practice in all California state and federal courts, is also an educator, active speaker, published author and frequent contributor to local, regional and national legal publications. For more than a decade, Chris has served as an adjunct professor and lecturer at Pepperdine University, California State University (Northridge), and Loyola Law School (Los Angeles).
Course Level
I - Intermediate
Credits
CEU:
0.000
CCE:
0.000
Audience
Admissions
Members:
$49.00
Non-Members:
$79.00
*Price is for admission only. Some events, especially college credit classes, have additional costs associated with materials, such as text books. See the event comments above for more details. Membership discount eligibility is at the discretion of the event sponsor.
Cancellations will be accepted for full refund no later than five working days prior to event — substitute attendees accepted up to day of event.
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