Unpaying customer

[tom76]

Hello. Both parties are in New York.

I have performed some work for a customer, through my small business. I get paid for hours spent on each project. The invoice lists names of projects, hours spent, and then the hours are totaled at the bottom, and multiplied by the hourly charge.

This past August I turned in all of the projects that were done up to that point, and received a check. However, the next day I received an e-mail asking me not to cash the check, since they were not happy about one of the projects. I agreed to hold off on that, until the issue is resolved. We've been working on that specific project for over 3 months, and they have been seeing every change in it almost on weekly bases. They have failed to tell me all those things they did not like up until the last minute.

In order to avoid conflict, I took that whole project off the invoice. After that, a new substitute had been added in place of that old project. I submitted a new invoice, but I still have not received a new check. I told them that I refuse to work on any additional projects until I am paid in full. Their invoice also exceeded the due date, September 29th.

What should I do?

The new invoice is slightly lower than the original check. May I cash the original check (one from August) without their permission, and just mail them another check for the difference?
Or should I just file with the small claims court?

Thank you!

[CraigFL]

While a lot of customers don't seem to agree with this, you can't withhold all payments because of a specific dispute. What would your electric company say if you had a dispute on the August bill and withheld the July and Sept payment until it was resolved? I would deposit the check and send them a refund on the disputed charges.

[collectone]

The check should have been cashed when it was first received. You could have then given the client credit for any projects in dispute in the form of a refund. It sounds like they are jeking you around a bit. You can attempt to cash the check you currently have in your possession but I guarantee it has already had a stop payment placed against it.

What type of business are you dealing with (Small, Medium or Large - Corporation, Sole Proprietor)? How much money are you talking about?

[tom76]

Originally Posted by collectone

The check should have been cashed when it was first received. You could have then given the client credit for any projects in dispute in the form of a refund. It sounds like they are jeking you around a bit. You can attempt to cash the check you currently have in your possession but I guarantee it has already had a stop payment placed against it.

What type of business are you dealing with (Small, Medium or Large - Corporation, Sole Proprietor)? How much money are you talking about?

The business is a small web design sole proprietorship.

The current check is for $575, while the new invoice is $463.

I actually doubt that he placed a stop on the check; he is a cheap man, and his bank charges $25 for stop payments.

I could probably just go down to his bank, and try to cash the check. Should I do that? Could he sue me for that?

Should I inform him ahead of time that I will be cashing the check? Right now I told him that if he does not pay me by Oct. 17, I am planning to take further action.

Thank you everyone for your responses!

[collectone]

The check is not stolen and was given for services rendered. There is no law that I am aware of that requires verbal confirmation of a check that is made payable to you with an authorized signature. The request to not cash the check is nothing more than a request and should be considered as such. In no way does it void the payment. I would cash the check and refund the difference.

[collectone]

I would not inform him ahead of time as it will only give him the opportunity to stop payment. $25.00 vs $575.00. I would write a letter explaining why the check was negoatiated to send along with the refund. Unless he is having financial problems and his situation will change by the 17th, if he has not paid to date you will probably not see a payment by your deadline.

[tom76]

Thank you very much for your advice!