Legal Question in Business Law in Maine

A client agreed by email to have me complete a project for a $100.00 fee. It wasn't a formal, signed contract. As we agreed, I completed the project on a certain date, and performed duties as specified in that email. I also emailed the client an invoice with net 30 payment terms.

After not receiving the client's payment five weeks later, I spoke with the client directly. The client had no problems with my work, and was pleased with it. I asked when I might expect their payment, and was told they would mail me a check soon.

I didn't receive payment. Three weeks later, I called the client on their cell phone and on their business lines stating that they didn't pay me, and wanted to know when they would send me payment. (This client is small enough that it's likely there isn't another person who handles accounts payable.) I also stated I would email another invoice with late fees attached at the beginning of the next month. I received no replies.

I haven't sent the invoice yet, because I'm not sure it would have much of an effect.

At the same time, I feel the client should pay me after agreeing to my terms in good faith.

This client's industry isn't among those my state regulates.

I see my options as the following:

* continue to pester the client for payment regularly, but not too often to be considered harassment, such as every 30 to 60 days, and include the legally applicable interest rates and late fees within my state

* consult a lawyer who specializes in business law; some offer free consultations, and/or pay for the lawyer to send the client a demand letter on my behalf

* file a claim in small claims court for $50.00, and try to get the client to cover my legal fees, too

* "forgive and forget" and write off this experience as a loss, and file a complaint against the firm with the Better Business Bureau and similar organizations.

What is my best, most cost-effective option -- if there is one -- that would get results?

P.S. I've learned my lesson. From now on, no matter how large or how small the fee, I will ask for partial payment up front, and require a signed agreement before starting work on any project.


Asked on 6/04/14, 9:28 am

1 Answer from Attorneys
Jerome Gamache Ainsworth Thelin & Raftice, P.A.

You have written a very well considered, thorough brief of the situation. There is little I can add, but to comment that an email exchange can form a contract that can be enforced in Small Claims Court so long as it clearly spells out the cost, the timeframe for performance, and the work to be performed.

The issue here is not that you are not legally entitled to seek relief, it is that your client did not appreciate the formality and binding nature of the agreement (a formal contract would create that appreciation), or that due to the modest sum at stake, the client figures you will not spend more than $100 in time and money to recover the fee. If you want to proceed on principle, you have apparently researched the process and Small Claims is available, and would in theory pay you back the money plus interest and your Court costs, but you will have to spend the better part of a morning in Court. The better course may be to file the business complaint, insist on more formality to ensure your client is serious, and obtain some payment in advance.

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Answered on 6/05/14, 2:29 pm


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