Legal Question in Business Law in California

Re: Non payment for services rendered

If the Quickbooks work amounts to new work, then refuse to do it until paid all outstanding past bills. Unless you have an agreement to the contrary, turning over hard copies would likely meet your ethical obligations (which, like the other attorneys, I decline to comment on here). As for collection, this should be pursued immediately, in small claims for the $5000 limit, with an attorney, or by using a service like olddebts.com - take a look.

I hope this helps, and if you were to decide to pursue this matter via an attorney, please contact me for assistance. Regards,

Jonas M. Grant, Esq.

http://www.incorporatecalifornia.com

Re: Non payment for services rendered

I think you are on the absolute correct track. If you're a CPA or the firm you work for is operated by a CPA, like attorneys there are ethical rules under which you must operate. You cannot if I am correct withholds records of your client even though the client Bo Zhu money since the client owns those records. That is the rules with attorneys. Here though, this deadbeat Bo Zhu $8000 for many years worth of work. To bat was not just $5000 as that is the maximum that you could sue for in small claims without the need of an attorney. The questionnaires do you wish to sue him and if you do are you willing to wait $3000, approximately 40 percent say you would not have to hire an attorney. Asked to the placing the documentation into QuickBooks, he's got to be kidding. If he wants you to do that kind of war he should supply you with a certified check for $8000 together with what it will cost to convert the documentation into QuickBooks and then, and only then what you supply him with the QuickBooks documentation. Xerox copies of every document you give back to him to keep them in your records, this is the kind of guy can be problematic in the future. Give him back only the original documentation that you prepared, and any documentation that he gave you that you needed to help prepare the tax documents themselves. Keep copies of all of that for your own protection. Do not give him any copies of your notes or work product, those all belong to you. By the way if he does sue you, turnaround and sue him right back for the money he oh you, plus interest at a legal rate of 10 percent per annum, others will argue with me about that, from the date that he owes you those monies.I have been practicing law in this legal area for over 30 years and understand your problem well. I practice in the S.F. Bay Area and if you wish to contact me call at 925-945-6000.

Re: Non payment for services rendered

Are you CPAs? If so, check with your ethical rules.

It shouldn't be hard to find an attorney to pursue your $8,000 and to advise you on whether or not to deliver the data in the meantime.

Re: Non payment for services rendered

I concur with Mr. Berger that you should check the ethics rules specific to your profession.

That being said, I would simply keep a copy of all of the work you have done for this client, give him the originals, then sue him for the amount of outstanding fees he owes the firm.

Re: Non payment for services rendered

I cannot answer your question (if you were an attorney, the answer would clearly be required for you to turn over that information). You may wish to look at the 5000 series of the California Business and Professions Code (on quick glance I saw no prohibition). Your claim for money to be paid would be strong if you turned over the records, and you might want to simply consider the moral issues of witholding it (yes, it is immoral to not pay you, but that does not mean you should go to that level).

Joel Selik

Re: Non payment for services rendered

In California lawyers cannot keep their clients work as security for payment because the Rules of Professional Conduct forbid this specifically. In some other States lawyers often do this. It is called a charging lien.

I know of no reason why you have to turn over work that was not paid for. However you should return documents and records originally supplied by the client.

I might suggest that you call the client and offer to settle now for $5,000 which is the maximum you could recover anyway in small claims. If you hire an attorney, it is unlikely you would do any better after paying the legal bill.