Quick background on my situation — any input appreciated.
client won't pay for completed work. I've been dealing with this for about 15 weeks now and the situation isn't improving.
The contract was signed 8 months ago. I have a copy of the original agreement. The total amount in dispute is approximately $149,000.
What's the typical outcome in situations like this?
Have you tried reaching out to your state's labor board? They sometimes have free resources or mediation services.
Key takeaway from the above: your contract terms matter enormously. The copyright retention clause was the real leverage here. If you're a freelancer without one, add this to every contract:
"All intellectual property rights in the Work Product shall remain with [Freelancer] until full payment is received, at which point rights transfer to Client."
Other protective clauses: (1) late payment penalties (1.5%/month is standard), (2) right to halt work for non-payment, (3) attorney fee shifting clause (loser pays winner's fees — this deters frivolous defenses), (4) kill fee for cancelled projects (typically 25-50% of remaining value).
For amounts under $10K, small claims is almost always the right venue. Fast, cheap, no attorney needed, and judges are sympathetic to contractors who completed the work.
Non-compete agreements are increasingly unenforceable. California bans them entirely. The FTC proposed a nationwide ban (though it's been challenged). Check your state's specific rules before assuming you're bound.
Force majeure clauses got a lot of attention during COVID, but they're narrowly interpreted. "Pandemic" isn't automatically covered unless the clause specifically mentions it. Going forward, make sure your contracts have explicit pandemic/epidemic language.