Legal Question in Business Law in California

Re: Liability for project with no contract

More facts are needed to fully analyze and answer your question. The extent of your risk may depend on why the client believes you are responsible for the losses - whether he contends you did something that constitutes negligence (rather than simply breach of contract). Also, the client may be able to claim status as a third party beneficiary under your subcontract (i.e., the subcontract was for the benefit of the client). That would depend on the language of your contract. Finally, there may be an issue as to whether (a) any claim against you would be determined by Australian law, or California law, and (b) whether the client would be able to sue you in Australia. (If he could, and if you were subject to Australian jurisdiction, he may be able to domesticate and enforce the judgment in California under existing treaties.)

Depending on the amount of the claim against you, it may be wise to engage the services of an attorney to go over all of the facts, charges, and documents and advise you as to your exposure.

Re: Liability for project with no contract

I agree with the preceding answer by Mr. Gittler.