Legal recourse for a client that won't pay?

[Designr]

I am a freelance designer and I took on a "marketing consultant" as a client, whose compensation practices I found out later were very unethical and shady. I ended up only charging him less than 10% of what I might normally charge a client. Given how he operates, and the fact that he hasn't responded to my emails regarding the overdue invoice, I am pretty sure that he doesn't plan on paying.

Financially speaking, I realize this isn't worth it for me to pursue, because the final invoice ended up being only $50 for 8 hours of work (a story in and of itself). Although financially not worth it, it's the principle of the matter. My sense is that this person makes money off of scamming unsuspecting freelance designers by either not paying them, or deceiving them to work at well below minimum wage, while they receive over $150/hour for the work that the designers do. Unfortunately I don't believe I can prove this. I would like to put a stop to it, or at least make him think twice before doing it again to another designer.

There was a signed contract. The client received all the deliverables they requested, and then some. And so far I've sent an overdue notice, with no response from the client. My goal isn't simply to collect my invoice from the client, but ideally I would like to stop their unethical practices so that other designers don't get burned. What are my options?

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

 

[Zigner]

I am a freelance designer and I took on a "marketing consultant" as a client, whose compensation practices I found out later were very unethical and shady. I ended up only charging him less than 10% of what I might normally charge a client. Given how he operates, and the fact that he hasn't responded to my emails regarding the overdue invoice, I am pretty sure that he doesn't plan on paying.

Financially speaking, I realize this isn't worth it for me to pursue, because the final invoice ended up being only $50 for 8 hours of work (a story in and of itself). Although financially not worth it, it's the principle of the matter. My sense is that this person makes money off of scamming unsuspecting freelance designers by either not paying them, or deceiving them to work at well below minimum wage, while they receive over $150/hour for the work that the designers do. Unfortunately I don't believe I can prove this. I would like to put a stop to it, or at least make him think twice before doing it again to another designer.

There was a signed contract. The client received all the deliverables they requested, and then some. And so far I've sent an overdue notice, with no response from the client. My goal isn't simply to collect my invoice from the client, but ideally I would like to stop their unethical practices so that other designers don't get burned. What are my options?

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

Sue the bad guy in small claims court for your $50.

 

[quincy]

... a client, whose compensation practices I found out later were very unethical and shady. ... Given how he operates, and the fact that he hasn't responded to my emails regarding the overdue invoice, I am pretty sure that he doesn't plan on paying. ...

... Although financially not worth it, it's the principle of the matter. My sense is that this person makes money off of scamming unsuspecting freelance designers by either not paying them, or deceiving them to work at well below minimum wage, while they receive over $150/hour for the work that the designers do. Unfortunately I don't believe I can prove this. ...

... There was a signed contract. The client received all the deliverables they requested, and then some. And so far I've sent an overdue notice, with no response from the client. My goal isn't simply to collect my invoice from the client, but ideally I would like to stop their unethical practices so that other designers don't get burned. What are my options?

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

Your option is to sue him for the work done by you if he fails to pay. Because of what I have quoted above and bolded, filing suit to collect the money owed appears to be your only option, unless another designer personally asks you what your experience was with him. Then you can relate the facts of your experience to that designer, without exaggeration or embellishment of the facts.

Good luck.

 

[Designr]

Suing is something I've considered, however I'm not sure if the pay-off is worth it.

How difficult is the small claims court process and where do I start? And can I also sue for the time and hassle of going through the trouble of suing them in order to collect?

Are there any other legal options I might be able to consider? Thanks for your response.

 

[quincy]

How difficult is the small claims court process and where do I start? And can I also sue for the time and hassle of going through the trouble of suing them in order to collect?

Are there any other legal options I might be able to consider? Thanks for your response.

You can go to the following Pennsylvania court website for small claims information: http://courts.phila.gov/howdoi/index.asp?search=28

Small claims courts are designed for ease of use by non-lawyers. You cannot sue the client for your time or the hassle.

Your legal options are limited because the costs involved are small. I would continue to try to contact the client and send him invoices.

 

[Designr]

Thanks for the responses.

I'll continue to try to contact him and send invoices.

Definitely a lesson learned for me - and advice to any contractor out there... never start a project with a new client before receiving the signed contract and 50% deposit in hand, no matter what. Without the money in hand, I was under the client's thumb.

It was a super rush same-day job, so I started it in good faith. I didn't get the signed contract until halfway through the project. Halfway through, the client said they would only pay half of the contract fee. I didn't agree to it, but then they threatened to find someone else to do it (after I already spent 3 hours on the project). In retrospect, I should have cut my losses then instead of finally agreeing to the reduced fee. And then later the scope of the project mysteriously expanded, nearly doubling the hours required, and the client wanted more revisions then we had agreed on.

I should have been paid $400 for the work... but instead I received $0.

 

[quincy]

I'll continue to try to contact him and send invoices.

Definitely a lesson learned for me - and advice to any contractor out there... never start a project with a new client before receiving the signed contract and 50% deposit in hand, no matter what. Without the money in hand, I was under the client's thumb.

It was a super rush same-day job, so I started it in good faith. I didn't get the signed contract until halfway through the project. Halfway through, the client said they would only pay half of the contract fee. I didn't agree to it, but then they threatened to find someone else to do it (after I already spent 3 hours on the project). In retrospect, I should have cut my losses then instead of finally agreeing to the reduced fee. And then later the scope of the project mysteriously expanded, nearly doubling the hours required, and the client wanted more revisions then we had agreed on.

I should have been paid $400 for the work... but instead I received $0.

Maybe the client will eventually feel guilty for taking advantage of your good nature and finally pay what is owed. The lesson you learned is, at any rate, a good one.

Good luck, Designr.