Obtaining a court judgment against a business or consumer is only one part of the recovery process, especially if the party you obtained a judgment against no longer has any assets after the judgment is entered. You spent all this money on litigation costs and only to spend more money to find alternative ways to recover your judgment. However, prior to initiating the legal process, you should consider obtaining a writ of attachment, which will almost certainly ensure recovery, should judgment be entered in your favor.
When two or more people engage in business for profit, with or without a formal written agreement, they are partners engaged in a general partnership. Partners have fiduciary duties to each other. Depending on the type of business relationship you have (limited or general) partnership, fiduciary duties will vary. In California, Corporate Code §16404 dictates the fiduciary duties of partners, along with any written terms of agreement between the partners. Fiduciary duties expose partners to liability when they fail to live up to their obligations.
When you are engaged in the business of supplying goods, you have the ability to reclaim these goods when the buyer fails to pay. In rare instances, buyers will purchase more goods than usual, stock up inventory, then file for bankruptcy in an effort to refuse paying for the goods. When the business to which you supply goods becomes insolvent, it may seek protection of federal bankruptcy laws in order to prevent you from recovering any money owed. Regardless of the situation, no business owner wants to ship goods to buyers for free, without payment.