Designer refuses to refund retainer fee

[1996jacket]

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

I hired an interior designer a few months ago for a redecorating project. I had to pay a $2000 retainer fee. In the contract, it is stated that the amount of the final invoice for the project will be taken from the retainer fee, and the remainder of the retainer fee will be returned to the client. Also in the contract it states that either party can cancel the project at any time. I received an invoice of $657 on 5/22. Upon receiving this invoice, I told the designer that I was terminating the project for budgetary reasons (she had been on the project for over a month, and her work was good, but I suspected she was overcharging me). The designer said that she was had reduced her fees and was going to modify the invoice and send me the remainder of the retainer fee soon. I didn't hear from her for over a month, so I sent an email to her on 6/27 to let her know I had not received her check. She responded on 6/30 by giving me a new invoice for the same time period as the previous invoice, but had added costs so that the new total is $2072. Her explanation was that she had given me a reduced price on the previous invoice, but no longer had an incentive to give me a discount. I did not request any discounts and was not made aware of being given any discounts until after I terminated the project.

I filed a complaint with the BBB, but it appears that the designer is going to let the complaint go public rather than settle the dispute and honor her initial invoice as I demanded in the complaint. Should I try to take this to small claims court? I would appreciate any advice.

 

[single317dad]

You state that the final invoice amount should be deducted from the retainer, and the remainder returned. Is there any provision in the contract for what happens when the total charges equal or exceed the prepaid retainer?

 

[1996jacket]

You state that the final invoice amount should be deducted from the retainer, and the remainder returned. Is there any provision in the contract for what happens when the total charges equal or exceed the prepaid retainer?

The contract doesn't state what should happen if the final invoice is over the amount of the retainer, but if the invoice was legitimate, I certainly would have paid the overage. I believe the designer specifically altered the invoice to be just above the retainer amount in order to avoid returning any of the retainer. She fully admits in an email that I saved and printed that she changed an invoice as retribution for my termination of the project. I can't believe that it is even legal for a contractor to alter a past invoice just because she changed her mind about what she wanted to charge, but I haven't been able to find an actual law online.

 

[justalayman]

I hired an interior designer a few months ago for a redecorating project. I had to pay a $2000 retainer fee. In the contract, it is stated that the amount of the final invoice for the project will be taken from the retainer fee, and the remainder of the retainer fee will be returned to the client. Also in the contract it states that either party can cancel the project at any time.

as to the right to cancel; does it say without penalty or obligation?

often times a contract is for a specific and defined scope of work. Often times that allows the contractor to claim payment for the entire scope of work regardless of whether they are allowed to finish it or not. Since it is specific to the contract I suggest you take your contract to an attorney who can review the contract and offer you advice on what they believe you are entitled to.

 

[quincy]

The contract doesn't state what should happen if the final invoice is over the amount of the retainer, but if the invoice was legitimate, I certainly would have paid the overage. I believe the designer specifically altered the invoice to be just above the retainer amount in order to avoid returning any of the retainer. She fully admits in an email that I saved and printed that she changed an invoice as retribution for my termination of the project. I can't believe that it is even legal for a contractor to alter a past invoice just because she changed her mind about what she wanted to charge, but I haven't been able to find an actual law online.

You might want to ask the designer first for a detailed accounting of the items listed on the new invoice, to better determine the validity. You can challenge any item that does not reflect the reality of the work done. But, if she is unwilling to refund any part of the retainer (and the contract allows for a refund), then you will probably have to take her to court.

I suggest you let the designer know that you intend to take legal action against her, prior to filing suit. It appears that the original invoice amount will need to be paid (deducted from the retainer) and you can sue for the remainder (again, if the contract allows for a refund).

If you have an email from the designer that actually says "I am changing the invoice as retribution for the termination of the contract," take that email with you to court, along with the contract you signed with the designer and along with both of the invoices submitted. You might also want to have available before and after photos that show what work has been done by the designer.

Good luck.

 

[Just Blue]

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

I hired an interior designer a few months ago for a redecorating project. I had to pay a $2000 retainer fee. In the contract, it is stated that the amount of the final invoice for the project will be taken from the retainer fee, and the remainder of the retainer fee will be returned to the client. Also in the contract it states that either party can cancel the project at any time. I received an invoice of $657 on 5/22. Upon receiving this invoice, I told the designer that I was terminating the project for budgetary reasons (she had been on the project for over a month, and her work was good, but I suspected she was overcharging me). The designer said that she was had reduced her fees and was going to modify the invoice and send me the remainder of the retainer fee soon. I didn't hear from her for over a month, so I sent an email to her on 6/27 to let her know I had not received her check. She responded on 6/30 by giving me a new invoice for the same time period as the previous invoice, but had added costs so that the new total is $2072. Her explanation was that she had given me a reduced price on the previous invoice, but no longer had an incentive to give me a discount. I did not request any discounts and was not made aware of being given any discounts until after I terminated the project.

I filed a complaint with the BBB, but it appears that the designer is going to let the complaint go public rather than settle the dispute and honor her initial invoice as I demanded in the complaint. Should I try to take this to small claims court? I would appreciate any advice.

What "type" of design was the person doing for you? 2k seems rather inexpensive to me. (Based on my knowledge of Interior Designers.)

 

[1996jacket]

What "type" of design was the person doing for you? 2k seems rather inexpensive to me. (Based on my knowledge of Interior Designers.)

The $2k was for the retainer fee, not the whole project. Invoices were sent biweekly and I paid them, but the last invoice was to come out of the retainer fee, and I was be repaid the difference. The designer changed the last invoice after I terminated the project, conveniently, to an amount that was over $2k so as to avoid paying me any difference.

 

[quincy]

Here is a link to the Bureau of Labor Statistics, Occupational Employment and Wages for Interior Designers, May 2014. You can click on Virginia for its state-specific information.

http://www.bls.gov/oes/current/oes271025.htm