My client(a small company) scammed me, what's my best option?

I'm a student working part time(while attending school) for a small company as a contractor (cos they don't want the cost associated with employees like insurance and especially overtime and so on). we've been getting along fine(all things considered) till recently when they suddenly sent me everything and asked me to finish it really fast(which would cost them thousands of dollars by any other contractor), then broke off communications with me after I handed them the end results and of course did not pay me. I can't afford time to go sue them(and they know it), but I do know they've been lying to their biggest clients(which I know cos I have everything). What I'm thinking is sending their client a report on their real financial situations(which, is listed on SEDAR anyway) and who they really are(they've been playing on technicalities and dressing themselves up to look good). My question is, since they did not pay me, is there anyway they can use my contract against me?

My concern is that if I did not work for them I would not know who their clients are(so I would not be able to send these clients public information if I did not work for them), so I was wondering what if this company finds out and then pays my bill so they can claim I breached the contract and sue me? How many days should I wait before it could be considered breach by conduct on their part so the contract is no longer relevant(and thus they are considered to have willingly divulged confidential information to me and would be their own fault)? I wanna screw em cos they've been taking advantage of me for a long time and it's not worth it to sue them(cos of the contract).

First off: you are not a victim. Don't act like one.

You are now a CREDITOR. You have immense leverage and options over your client.

If you have your time / contract in written form, you are on solid ground. Look for a collection agency which will take up your case. Generally they will take on the task of getting your money in exchange for a percentage of the debt owed. Collection records ruin business credit ratings for years -- and can show up in personal credit reports as well if the business is not properly incorporated -- therefore the threat of collection is usually enough to get you paid. Begin with a standard collection notice if the debt has not been paid within the time specified in the contract (assuming it was). If the time was not specified, you should send an invoice and "friendly reminder" letter simply stating, "Whoops, did you forget to pay your bill?" or words to that effect. Send another "reminder" two weeks later. "I still haven't heard from you, is there something wrong that you can't pay? Can we work out a payment plan?" (etc). After another two weeks, send a letter of intent to turn over the account to collections after 10 business days. DO NOT use insulting language; stick to the facts. Be firm but professional and courteous.

In all cases, you should prepare a letter stating that your client has breached its part of the contract due to non-payment. Keep it simple. "Due to non-payment of the agreed-to terms of the [contract name] contract dated [original date], [client] is hereby declared in breach of the contract. [You] requests immediate payment of all outstanding fees for [outstanding invoices], for the sum of [$money]." Send this letter once 30 days has passed from your first "friendly reminder". Send it return-receipt, certified. Keep the receipt that comes back with the signature with a copy of the letter. This is important because you must document that they didn't keep their end of the bargain -- thus they can't come back and make your life miserable later. And you must also document that you informed them of their breach of contract -- including your PAST-DUE invoices and the notice of breach of contract. Keep a copy of everything, and send it all via return-receipt mail.

You should avoid badmouthing your client to others and keep the situation professional. You will have other slow-payers and non-payers in the future. But if you go around dissing them, it will come back to bite you later because everyone knows everyone else in the fields we work in. Other folks will wonder what you're saying about them behind their backs. It might cost you far more than the money you haven't been paid -- like future work.

Keep it professional, keep it simple, and keep up the pressure. You are owed the compensation, but remember, the movement of money isn't overnight in business. Play it step-by-step, document everything, and use certified, return-receipt mail. Keep a copy of signed return receipts to prove they received your requests for payment. Eventually even most fly-by-night operators will give in to a professional yet persistent creditor.

Here in Oklahoma there is a special law on contractors not paying and be able to file suit in small claims court, very cheaply done. This happened to someone i knew. I would say though that your contract, depends on what kind, what it says, and the work done. You could be held liable for work if something done which causes harm or damages. Also, is there a requirement in your state for insurance requirements and a license for this kind of work?? This could be important to you, as fines, or charges could result if you don't have and it is required

Your 'revenge' concept is not valid. If you received confidential information, you could be sued for any damages if you use that info against them.

By receiving it, you have an implied duty to keep that confidential, and certainly could not knowingly divulge it to cause hurt to them. It's the receipt of the info that creates the situation, not the payment for work done.

Besides, do you really want to dirty your own reputation in a situation like this? Maybe one day you might want to work for the client, and a reputation for this sort of behavior won't help you.

Take the high road. Go ahead and sue in small claims (costs almost nothing), but skip the revenge scenario.

"My question is, since they did not pay me, is there anyway they can use my contract against me?"

Since we do not know what was in your contract, we cannot accurately answer your question.

You do not say how your have attempted to contact them.
Telling their clients that they are lying, could bring a charge of libel, especially since you admit that you are trying to punish the company. That could cost you more time and money than suing for your fee, even if they cannot substantiate it in court.

You should consider talking to a lawyer if you are unable to settle it soon. Consider all your time and costs in your approach to this matter.