a legal question - please help!

Hi All,

I run a small web development company, we developed an application and
deployed on the clients' server. Now the client doesn't want to pay
the final invoice. When I called asking the client about not paid
invoice, they started to complain the system is flawed (during the
development process the client expressed that they're pleased).

I suggested I could take proceedings against them, they started to
threaten us that they will take us to court claiming the application
is insecure, flawed, etc. and claim even more money. We believe their
excuse is very lame. The application we developed perhaps has some
hidden bugs as all applications do and it's clearly stated it's a beta
version. The agreement also didn't put any stress on security (it's
not any application for a bank, etc)

In our agreement we stated all found bugs will be fixed within 60 days
from deployment. When they called me they couldn't specify what's
wrong apart from one bug, which I admit can be potentially risky. The
bug allowed to upload through 'browse' files such as php, but we said
we can fix it very quickly. Instead the client changed passwords on
their server.

More interesting thing is we noticed the client is using the
application and they update it further themselves. If it was so bad as
they claim they woud stop using it, wouldn't they?

Before I take them to court against not paid invoice I would like find
out if they have any chance winning their case if they decided to sue
us against flawed application. Can they win, because the application
had some hidden bugs (which we promised to fix, but we couldn't
because they changed passwords)?

I also would like to prove the application was deployed. The agreement
says they need to pay when the application is deployed. How can I
prove the application was live, just in case if they decided to put it
down before court case?

Thanks a million for your advice,

Best Regards,
Richard

Dear Richard

You can get the payment.

Cases in court are won or lost not because of justice but based on how
the case is built up, presented to the court and evidence presented to
the court.

You need to build up the case.that you were ordered by the client to
develop the application, that your delivery conforms to their specs,
that they accepted it and are using it and lastly that you made
reasonable attempts to convince the client to pay up. If you can build
a strong case, you will get the payment along with penalty.

Then you need to present the case.

Then you need to present the evidence for all the above.

I faced similar situations. My case build up itself got the payment in
most cases. Out of court settlements took place in others. I wish you
good luck and I shall be happy to help you. Mind you, I am not a
lawyer but a software manager.

Best wishes

Murali Chemuturi



On Aug 7, 5:44 pm, Richard <richard...@gmail.com> wrote:
> Hi All,
>
> I run a small web development company, we developed an application and
> deployed on the clients' server. Now the client doesn't want to pay
> the final invoice. When I called asking the client about not paid
> invoice, they started to complain the system is flawed (during the
> development process the client expressed that they're pleased).
>
> I suggested I could take proceedings against them, they started to
> threaten us that they will take us to court claiming the application
> is insecure, flawed, etc. and claim even more money. We believe their
> excuse is very lame. The application we developed perhaps has some
> hidden bugs as all applications do and it's clearly stated it's a beta
> version. The agreement also didn't put any stress on security (it's
> not any application for a bank, etc)
>
> In our agreement we stated all found bugs will be fixed within 60 days
> from deployment. When they called me they couldn't specify what's
> wrong apart from one bug, which I admit can be potentially risky. The
> bug allowed to upload through 'browse' files such as php, but we said
> we can fix it very quickly. Instead the client changed passwords on
> their server.
>
> More interesting thing is we noticed the client is using the
> application and they update it further themselves. If it was so bad as
> they claim they woud stop using it, wouldn't they?
>
> Before I take them to court against not paid invoice I would like find
> out if they have any chance winning their case if they decided to sue
> us against flawed application. Can they win, because the application
> had some hidden bugs (which we promised to fix, but we couldn't
> because they changed passwords)?
>
> I also would like to prove the application was deployed. The agreement
> says they need to pay when the application is deployed. How can I
> prove the application was live, just in case if they decided to put it
> down before court case?
>
> Thanks a million for your advice,
>
> Best Regards,
> Richard

On 8 Aug, 08:34, Consultant <murali.chemut...@gmail.com> wrote:
> Dear Richard
>
> You can get the payment.
>
> Cases in court are won or lost not because of justice but based on how
> the case is built up, presented to the court and evidence presented to
> the court.
>
> You need to build up the case.that you were ordered by the client to
> develop the application, that your delivery conforms to their specs,
> that they accepted it and are using it and lastly that you made
> reasonable attempts to convince the client to pay up. If you can build
> a strong case, you will get the payment along with penalty.
>
> Then you need to present the case.
>
> Then you need to present the evidence for all the above.
>
> I faced similar situations. My case build up itself got the payment in
> most cases. Out of court settlements took place in others. I wish you
> good luck and I shall be happy to help you. Mind you, I am not a
> lawyer but a software manager.
>
> Best wishes
>
> Murali Chemuturi
>
> On Aug 7, 5:44 pm, Richard <richard...@gmail.com> wrote:
>
> > Hi All,
>
> > I run a small web development company, we developed an application and
> > deployed on the clients' server. Now the client doesn't want to pay
> > the final invoice. When I called asking the client about not paid
> > invoice, they started to complain the system is flawed (during the
> > development process the client expressed that they're pleased).
>
> > I suggested I could take proceedings against them, they started to
> > threaten us that they will take us to court claiming the application
> > is insecure, flawed, etc. and claim even more money. We believe their
> > excuse is very lame. The application we developed perhaps has some
> > hidden bugs as all applications do and it's clearly stated it's a beta
> > version. The agreement also didn't put any stress on security (it's
> > not any application for a bank, etc)
>
> > In our agreement we stated all found bugs will be fixed within 60 days
> > from deployment. When they called me they couldn't specify what's
> > wrong apart from one bug, which I admit can be potentially risky. The
> > bug allowed to upload through 'browse' files such as php, but we said
> > we can fix it very quickly. Instead the client changed passwords on
> > their server.
>
> > More interesting thing is we noticed the client is using the
> > application and they update it further themselves. If it was so bad as
> > they claim they woud stop using it, wouldn't they?
>
> > Before I take them to court against not paid invoice I would like find
> > out if they have any chance winning their case if they decided to sue
> > us against flawed application. Can they win, because the application
> > had some hidden bugs (which we promised to fix, but we couldn't
> > because they changed passwords)?
>
> > I also would like to prove the application was deployed. The agreement
> > says they need to pay when the application is deployed. How can I
> > prove the application was live, just in case if they decided to put it
> > down before court case?
>
> > Thanks a million for your advice,
>
> > Best Regards,
> > Richard

Thanks Murali for your reply. It's good to hear a comment from someone
having experience with nuisance clients.
Richard