Can I send a client to collections on a refund I technically allowed?

[fstep2]

What is the name of your state (only U.S. law)? NY

I used to use a website to pick up new clients. This service was heavily reliant on good user reviews, during my few years there I had to
refund a few clients on projects that went sour because they either left a bad review or threatened to leave one (refund removed the bad rating).

I am no longer planning to use this service as my business grew, but I would like to send those people to collections and take the 2 locals
to court. My question is whether or not I am allowed to legally do this after processing the refund. At the end of the day they never paid for the work I delivered...

 

[LdiJ]

What is the name of your state (only U.S. law)? NY

I used to use a website to pick up new clients. This service was heavily reliant on good user reviews, during my few years there I had to
refund a few clients on projects that went sour because they either left a bad review or threatened to leave one (refund removed the bad rating).

I am no longer planning to use this service as my business grew, but I would like to send those people to collections and take the 2 locals
to court. My question is whether or not I am allowed to legally do this after processing the refund. At the end of the day they never paid for the work I delivered...

No, you cannot do that. You chose to give them a refund.

 

[fstep2]

No, you cannot do that. You chose to give them a refund.

What about in a case when the client refused to release full payment from escrow. Situation is this: the job was only for $700, there is a $350 fee to go to arbitration which takes a ridiculous amount of time and is not feasible for this amount. Does the fact that they refused to release the money after product was delivered allow for the claim?

 

[Zigner]

What about in a case when the client refused to release full payment from escrow. Situation is this: the job was only for $700, there is a $350 fee to go to arbitration which takes a ridiculous amount of time and is not feasible for this amount. Does the fact that they refused to release the money after product was delivered allow for the claim?

Not if you agreed to binding arbitration...

 

[LdiJ]

What about in a case when the client refused to release full payment from escrow. Situation is this: the job was only for $700, there is a $350 fee to go to arbitration which takes a ridiculous amount of time and is not feasible for this amount. Does the fact that they refused to release the money after product was delivered allow for the claim?

Not if you chose to give them a refund.

 

[fstep2]

Not if you chose to give them a refund.

Ok, is there anything illegal about me suing them anyway, knowing the fact that fighting it will cost them a lot more than what they owe

 

[Proserpina]

Ok, is there anything illegal about me suing them anyway, knowing the fact that fighting it will cost them a lot more than what they owe

Don't bet on that, sparky. Don't be on that at all.

Be prepared to pay THEIR costs when you lose.

 

[quincy]

Ok, is there anything illegal about me suing them anyway, knowing the fact that fighting it will cost them a lot more than what they owe

Please don't abuse the legal system and the courts in that way, fstep2. Speak with an attorney in your area if you believe you have reason to sue but do not sue if you know you don't have a legitimate action.

 

[Proserpina]

Please don't abuse the legal system and the courts in that way, fstep2. Speak with an attorney in your area if you believe you have reason to sue but do not sue if you know you don't have a legitimate action.

Frivolous, malicious ... heck, HE can face sanctions.

 

[justalayman]

You modified whatever contract you had by refunding the money and not objecting to it then. If you sue now expect things like;

Harassment, malicious prosecution, abuse of process, frivolous, and most importantly: to whom do I write this check to to become a regular part of your vocabulary.