Tell HN: Major Business Lesson #2

I'm pretty pissed off right now considering I just got screwed out of $550 by a frontend developer. I started a company earlier this year and it had taken by a few months to save up enough money to afford to pay someone to design a site for me. One of the goals of my business is to try to hire as much "talent" in the area as I can. I wanted to try to give people a chance to work of projects that they wouldn't normally get the chance to work on. After asking around and looking at various different developers and designers, I decided to go with one that seemed to know his stuff. I went ahead and hired him. (First lesson, NEVER LET THE PERSON YOU HIRE MAKE THE CONTRACT)

The project was a simple 30 hour project. It was suppose to take 7 to 10 "business days" as outlined within the contract. After almost a month and a half I had nothing. Once I asked why it was taking so long, he was quick to point out that the contract had a 30 "business day" window. I double checked the contract and found nothing.

Yes I read the contract and everything seemed fine to me. I did have him change a few things within the contact, but it apparently was not enough to make any big difference.

At the point he him quoting the contract and saying that I have not given him "any feedback" I told him that he has not sent me anything to give feedback on. We agreed to meetup at a later date to discuss the project. Soon after he sent the "final drafts" for approval. I called him out and asked why he was sending final drafts when there were already so many issues. After some more arguing I requested that my money be returned seeing as he breached the contract. He copy and pasted the termination clause in the contract and I copy and pasted the terms of the contract which he breached. Then I asked for my money to be returned.

I heard nothing from him until a few hours later when he CC'ed his lawyer onto the e-mail and said that he can't say anything until after he speaks with his "council". Pretty upset about this, I contacted my own lawyer. He told me exactly what I was expecting to. I do have a case, however to pursue the case would cost me more but I may be able to look into going to small claims court and try to get some of it back. He also suggested that I try to reach out to him one more time.

I sent the developer one more e-mail asking if there was anyway that things could get resolved. He sent a long e-mail more or less outlining that he assumed that me "asking why the site hasn't been completed" was grounds for extended the length of the contract. He also pointed out that he has the right to change the contract any time he wants. No where in the contract does it say he has the right to change the terms of the contract at any point.

After that little e-mail I called up the courthouse to ask how I would go about filing a lawsuit. They gave me all the info and asked he I was incorporated. I said, "yes", and the lady informed me that because I'm incorporated that I would need a lawyer present when I show up for court.

Seeing as it took me a few months to save up the $550 and that a lawyer would be a few grand. There's no way I could come out ahead and get my money back.

MAJOR LESSON #2: Hire a damn attorney to write you a contract. In the end it is well worth it and will save you time and money.

Another lesson I learned came from the lawyer. "If you're gonna screw someone keep it under $10K."