San Francisco, CA asked in Construction Law and Contracts for California

Q: I have an interior design client that is in breach of contract. She refuses to pay our invoices.

She owes 2 past-due invoices and has insufficient funds to cover the latest check that was given to us per the signed agreement.

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3 Lawyer Answers

A: You could first send a demand letter on attorney letterhead to see if that provokes her to make the past-due payments. If that doesn't work, you could file a lawsuit for breach of contract. If your work contributed to a work of improvement, you may be entitled to record a mechanics lien against the property and then file a lawsuit to foreclose the lien.

George W. Wolff
PREMIUM
Answered

A: What services did you render.

Was this part of a Construction or remodel project?

You may have no lien rights unless you contributed to the remodel or improvement of the property

In that case you may just need to sue your customer

James L. Arrasmith
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Answered

A: In California, if a client is in breach of contract by refusing to pay for services rendered, you have several legal options to consider.

First, you should send a formal demand letter to the client outlining the breach (non-payment of invoices) and the consequences if the payment is not made. This letter serves as a formal notice and can be used in legal proceedings if necessary.

If the client still refuses to pay, you can file a claim in small claims court, provided the amount owed is within the court's monetary limits. This is often a quicker and less expensive option for resolving disputes over smaller sums of money.

Alternatively, for larger amounts, you may need to file a lawsuit in a higher court. This process can be more complex and may require the assistance of an attorney.

You should also review the terms of your contract for any specific clauses regarding dispute resolution, late payments, or penalties. These terms may provide additional avenues for recourse or negotiation.

It's important to keep detailed records of all communications, invoices, and attempts to collect payment, as these will be valuable if legal action becomes necessary.

Remember, taking legal action can be time-consuming and costly, so it's often beneficial to attempt to resolve the issue through negotiation or mediation before proceeding to court.

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