Legal Question in Business Law in California
Invoice payment after approval executive is fired
We own a small design agency and were asked to provide a quote for redesign of a company's website. We provided a proposal to redesign including cost. The VP of Marketing approved our proposal and over the course of 2 months we worked with this VP to completely redesign/redevelope the website. Right after final approval (from the VP) and deployment of the new website the VP of Marketing was fired. The new executive has now informed us they don't like the website we did and they are switching back to the old design. They feel that our invoice amount is too much and want to take 25% off of the invoice. We worked to the specifications provided and obtained approval throughout the project. It is bullsh@t that their displeasure with that VP is now costing us money! What is our recourse on this?
2 Answers from Attorneys
Re: Invoice payment after approval executive is fired
Your contract was with the company and not with the executive who signed it, so the company is bound by its agreement. You can either reach a compromise with the company or sue it, unless your contract specifies some other means of resolving disputes.
Re: Invoice payment after approval executive is fired
Stand firm if you are right, but be willing to accept a modest reduction as good faith compromise, and file suit if none is reached. Pursuing the matter will cost time and effort you can't recover in court. If the amount is above small claims court, hire an attorney, as I assume you had an attorney fee provision in your written contract.
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