Return of labor deposit, for cancelled work?

[justing55]

I run an automotive hot rod/custom car shop, a customer gave us a deposit for the labor to build a custom car. Work has been continues and satisfactory, however he now wishes to remove the vehicle and is asking for the remainder of his deposit back immediately (about 12k).

We do not have these fund immediately available we asked to make payments, however the terms of our repayment are not satisfactory to him and now he is threating legal action.

Unfortunately the bulk of this job was done on a "handshake" agreement (not how we generally do business) therefore there is no signed agreement regarding these funds.

My question is what is, our legal responsibility to repay this amount and in what time frame?

Any advice would be appreciated
-Justin

 

[army judge]

I run an automotive hot rod/custom car shop, a customer gave us a deposit for the labor to build a custom car. Work has been continues and satisfactory, however he now wishes to remove the vehicle and is asking for the remainder of his deposit back immediately (about 12k).

We do not have these fund immediately available we asked to make payments, however the terms of our repayment are not satisfactory to him and now he is threating legal action.

Unfortunately the bulk of this job was done on a "handshake" agreement (not how we generally do business) therefore there is no signed agreement regarding these funds.

My question is what is, our legal responsibility to repay this amount and in what time frame?

Any advice would be appreciated
-Justin

Without a contract, you know you are at risk.

You are required by law in CA to provide a customer with a written estimate for ALL work.

I suggest you pay him his money, or you could have bigger problems if he reports you to BAR.

In fact, he could go to the DA and possibly attempt to convince the DA to charge you with fraud.

I suggest you speak with a lawyer, and determine your options in CA.

This pamphlet is put out by the regulatory body in CA that oversees your business.

http://www.bar.ca.gov/80_BARResources/07_AutoRepair/Auto_Rep_Guide.pdf

I draw your attention to page 7.

Home page California Bureau of Automotive Repair

http://www.bar.ca.gov/index.aspx