Legal Question in Business Law in California

My company was in the middle of developing a website with a new client. The client paid me 25% to get started and another 25% after the final art direction was approved by the client. The remaining 50% was not to be collected until after the website was finished and all pages posted live. I was 95% finished with the website when the client behaved unreasonably, changing the nature of our relationship. He offered two options for me: 1) either I finish the project in the next few days, or 2) I send his printed papers back to him and the client will start over with a new design company. I sent back his papers and we parted ways. Now client is asking me for a refund stating that I wasted 2 months of his time. He further stated that our "verbal agreement" is all he needs to win in court. I have all our email correspondence and it shows holes and inaccuracies in his statements. We had a proposal/contract we worked from which I signed, but the client did not. Client is a former cop who is trying to bully me because he perceived I wouldn't finish his project on time. He panicked 5 days before the due date making it difficult to work with him on final changes to the website prior to posting live. In order to receive the second payment of 25%, the client needed to be happy with the final art direction. He received static JPEG files showing the final art direction and he was very happy, then the client sent me the second payment. All the time spent developing the art direction is what he paid for and exactly what I delivered. Does this client have any ground to stand on asking me for a refund of the 50% he has paid so far?


Asked on 1/04/11, 10:32 am

3 Answers from Attorneys
Joe Marman Law Office of Joseph Marman

I would guess that he is attempting to avoid paying you. These issues come up with breach of contract cases, and the parties must prove whoever of the two are at fault for the non-completion of the contract. If he unjustifiably stopped the performance of the contract, then you should win. Partial performance of the contract will avoid the consequences of the lack of his signature. Verbal contracts are enforceable, but it is just difficult to prove the actual terms.

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Answered on 1/09/11, 10:40 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

It sounds to me as though the contract was terminated by mutual agreement when you accepted one of two alternatives your client presented. The client accepted partial completion in exchange for the 50% of the contract price he'd already paid. That should be the end of the story.

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Answered on 1/09/11, 3:18 pm
Ashley C L Brown Law Offices of Ashley C. L. Brown

You need to review the terms and conditions of the contract that you have to see what it says about performance, breach, remedies, etc. Also, look at all of the written correspondence you have. Those things, along with the payment history, should be the best evidence of any agreement the two of you had.

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Answered on 1/10/11, 8:31 am


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