Legal Question in Business Law in California

I hired a company to perform Search Engine Optimization for my website. We worked together for about one year (payment of $10k-$15K per month), and they were to retain 10% as commission. I started getting the feeling that they were retaining more of the monthly budget than the 10% and asked for reporting. Four days after collecting on the last $12k invoice, they notified via email that unless I sign a 1 year binding contract they would not continue work. My business is in CA they are in FL. We don't have any contracts just emails back and forth. When I asked for my money back, they said they have applied it to previous projects they never "billed" for, although the last invoice clearly shows "Feb-March" Services. Can I sue in small claims court (even for a lesser amount) in California?


Asked on 4/09/10, 4:58 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Not in small claims court (since they are out of state). You'll have to go to limited civil court, and that's sufficiently complicated that you'll need an attorney. Since there's no written contract that says you get attorney fees if you win, your attorney fees will be out-of-pocket. Also, you might get thrown out of court if the FL company contests personal jurisdiction -- another issue that could have been avoided if you had paid an attorney to write a contract for you from the get-go ("All lawsuits related to this contract shall be filed in Beverly Hills, California.").

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Answered on 4/14/10, 5:27 pm


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