Legal Question in Construction Law in Massachusetts

Breach of Contract question....

Hello. I appreciate the time of whomever it is answering this question. We were doing a project for someone in which we received a deposit for $12,000.00 ( a third of the contract.) We paid an architect to get the plans and he took off and we have been unable to locate him. It took about a year for us to get another architect, and now we have hired an attorney to get a variance for the job. We gave the attorney a retainer for this and signed a contract with her. We told her that the funds were not available the day we gave her the check, but that they would in a couple of days, so she put the check in anyways and it bounced but only once. She had to have contacted her bank to not put that check through a second time, because it is automatic and it has been months now and the funds have been available since. We have tried contacting her several times to cash it and start work. Now we find out today that she has gone behind our backs, spoken to our client and is trying to get them to cancel the job and buy a house for sale which she is the attorney for. She told our client that she has never received a check or a signed contract from us. Now they are threatening to sue us and they want the entire deposit back, despite our spending $

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