I'm sure this is a really easy one, but I'd like some legal input to this.

We're a web based software developer and we currently have a customer who can't/won't pay his final invoice. We had issues with him in the past with other stages of his payments (we generally invoice in stages) and so for the final payment we agreed a full specification. Before this everything was verbal because he was a 'friend'.

We have completed everything as per the specification, yet he won't pay. He now says other features of the software were agreed previously (although there's no paperwork) and one of his requests is 'obvious for this type of software' - although it's bespoke. He's even claiming that it's late (although he requested features after the deadlines he's quoting.

All in all, a nightmare.

Where do I stand? Luckily, he's hosted with us and so I'm thinking I can just switch him off. If I give him fair warning, can I do that?

I'm then thinking we just persue the debt. OR, should we persue the debt first and let him keep using the site?
=============
Maybe discuss with the client a solution...Offer a reduction on money owed. A compromise

Then again as you say you could always switch them off, although a little radical.
=============
No chance of a reduction, they're currently costing us more in development time than we'll get back in the final invoice. If they pay, we'll have barely covered costs.

I've already offered a compromise of specifying the new development he requires and doing it for free when he pays the outstanding invoice. He's always on the take and always delaying payment. To be honest, I think he's having cashflow issues but that's not my concern.
=============
In which case stop all development, also I would write him a letter telling him he has 14 days (ish) to settle invoice, or you will take down his website/solution.

That may concentrate his mind.

IN terms of legal standing I would go through everything he has sent you, and everything you have sent him. Print it off get it all in date order. Plus print off any scope you may have written prior to him engaging you.

Then write up the areas you think have been additional to the initial scope/quote and price that additional work.

Then take a walk into a local solicitors office see if they think a small claims action would be the best way forward. Or at least find out the options.
=============
My thoughts as well. I'm generally a worrier about these sort of things and I guess my thinking was "what if he counter-claims for loss of business", but then I think 'What would Duncan Banatyne do?'.

I guess he'd do something nasty with a rusty spoon.

As you say, the key is getting a solicitor to handle it.
=============
Hi
I agree with the notes posted on this subject. Print off everything you have on this matter and file in date order. There seems to be a lot of verbal instructions on this forum, we are handling a number of cases for members on the forum. They have no instructions or brief or even a simple quote. This is your confirmation of order, it will also help you in the future should they choose not to pay.

I will handle this case for you and you can use our solicitors free of charge. If you send me a pm I will reply asap. You also need to write down your brief of the job. I.e when he contacted you how you agreed your terms.

I am happy to offer you any further advice or handle this matter for you. I offer the members of this forum a low percentage and also a no collection no fee. So what have you got to lose. I also recommend you suspend his site/if you host it. As all rights are yours until payment is received.

simon
Central Enforcement
=============
Agreed, suspend his domain if you have reasonable cause to do so but if you feel there are mitigating circumstances of the debtors behlaf, perhaps its prudent to advise that 3rd party legal advice may be a sensible option so as not to warrant a claim for loss/damages etc
=============