What can I recover when a professional doesn't deliver services I paid for?

You can recover the fees paid for undelivered services, consequential damages like business losses caused by non-delivery, costs to hire a replacement professional, and 10% prejudgment interest under California Civil Code 3289. If fraud is involved, you may also recover punitive damages.

What is the statute of limitations for professional service non-delivery in California?

For written contracts, four years under CCP 337. For oral agreements, two years under CCP 339. For fraud claims, three years from discovery under CCP 338(d). The clock starts when the breach occurs or when you reasonably should have discovered it.

Can I report a professional who took my money but didn't deliver?

Yes. Licensed professionals like attorneys, accountants, and contractors can be reported to their licensing boards. Attorneys go to the State Bar, CPAs to the California Board of Accountancy, contractors to the CSLB. This can result in discipline, license suspension, or restitution orders.

Do I need to demand performance before suing?

While not always legally required, a demand letter serves critical purposes: it creates a written record of your claim, may be required by your contract, gives the professional a chance to cure (which courts favor), and establishes your mitigation efforts. It often triggers settlement discussions.

California Professional Services Non-Delivery Demand Letter | Recover Fees for Unperformed Services

📋 Overview: Professional Services Non-Delivery

Professional services non-delivery occurs when a professional you hired—such as an attorney, accountant, consultant, or specialist—accepts payment but fails to deliver the promised work product or services. This is a form of breach of contract that may also constitute fraud or professional misconduct.

Common Scenarios

💼 Paid Retainer, No Work

Professional accepted a retainer or deposit but never started the work or abandoned it midway

📄 Deliverables Never Received

Paid for specific work products (reports, filings, designs) that were never delivered

🕑 Missed Critical Deadlines

Professional's failure to perform caused you to miss deadlines with serious consequences

🚫 Ghosting / Non-Responsive

Professional stopped responding to communications after accepting payment

👍 What You Can Recover

Direct damages: All fees paid for undelivered services
Consequential damages: Business losses caused by non-delivery (lost contracts, penalties, missed opportunities)
Cover damages: Additional cost to hire a replacement professional
Prejudgment interest: 10% per year on contract damages (Civil Code 3289)
Punitive damages: If fraud or intentional misconduct is proven
Attorney's fees: If your contract includes a fee-shifting provision

⚠ Time Limits Apply

California has strict statutes of limitations for these claims:

Written contracts: 4 years from breach (CCP 337)
Oral contracts: 2 years from breach (CCP 339)
Fraud: 3 years from discovery (CCP 338(d))

Do not delay—failing to act within these periods bars your claim entirely.

👤 Professionals Covered by This Guide

This guide applies to disputes with any professional service provider who accepts fees for work they fail to perform. Common scenarios include:

⚖ Attorneys

Accepted retainer but didn't file documents, missed deadlines, or abandoned representation

📊 Accountants / CPAs

Paid for tax preparation, audits, or financial statements never delivered

💻 IT Consultants

Software development, system integration, or technical projects left incomplete

🎨 Designers / Creatives

Branding, web design, or creative work paid for but never delivered

📈 Business Consultants

Strategy, marketing, or management consulting with no deliverables

🛠 Engineers / Architects

Plans, permits, or technical work contracted but not completed

💡 Licensed vs. Unlicensed Professionals

Licensed professionals (attorneys, CPAs, contractors, engineers) face additional accountability through their licensing boards. Filing a licensing complaint can:

Create significant pressure for resolution
Result in disciplinary action including license suspension
Lead to mandatory restitution orders
Become evidence in your civil case

⚖ Legal Basis

California law provides strong remedies for professional service non-delivery through contract law, consumer protection statutes, and professional licensing requirements.

Key California Statutes

📚

California Civil Code Section 3300

Establishes the measure of damages for breach of contract: the amount that will compensate for all detriment proximately caused by the breach, or which in the ordinary course of things would be likely to result therefrom.

📚

California Civil Code Section 3289

Provides 10% per annum prejudgment interest on contract damages from the date the obligation was breached. This significantly increases your recovery in professional service disputes.

📚

California Civil Code Section 1573 (Constructive Fraud)

Applies when a professional breaches a duty arising from a confidential or fiduciary relationship without fraudulent intent. Attorneys, CPAs, and other fiduciaries owe heightened duties to their clients.

📚

California Business & Professions Code Section 17200 (UCL)

California's Unfair Competition Law prohibits unlawful, unfair, or fraudulent business practices. Taking payment without delivering services may constitute an unfair business practice, allowing restitution and injunctive relief.

Key California Cases

📖 Applied Equipment Corp. v. Litton Saudi Arabia Ltd. (1994) 7 Cal.4th 503

California Supreme Court established that contract damages should put the non-breaching party in the position they would have been in had the contract been fully performed. This is the foundation for recovering both direct fees and consequential business losses.

📖 Lewis Jorge Construction v. Pomona Unified School Dist. (2004) 34 Cal.4th 960

Confirmed that consequential damages are recoverable when they were within the parties' contemplation at contracting. Lost profits from professional non-delivery are recoverable if proven with reasonable certainty.

📖 Stanley v. Richmond (1995) 35 Cal.App.4th 1070

Established that attorneys who abandon clients or fail to perform may be liable for malpractice damages including costs to retain substitute counsel and losses caused by the abandonment.

🔍 Evidence Checklist

Gather these documents before sending your demand letter. Strong documentation maximizes your leverage and proves your claim.

📄 Engagement Documents

✓ Engagement letter or service agreement
✓ Statement of work or scope document
✓ Project timeline or deadlines
✓ Description of deliverables promised

💰 Payment Records

✓ Retainer checks or wire transfers
✓ Invoices from the professional
✓ Credit card statements showing payments
✓ Payment platform records (PayPal, Stripe)

📩 Communications

✓ Emails requesting status updates
✓ Professional's excuses or promises to deliver
✓ Evidence of non-response (unanswered emails)
✓ Text messages, Slack, or other correspondence

📈 Consequential Damages

✓ Lost contracts or business opportunities
✓ Penalties or fines from missed deadlines
✓ Cost of emergency replacement services
✓ Documentation of business disruption

💰 Damages Calculation

California law allows recovery of multiple categories of damages for professional services non-delivery.

Damage Category	Description	Legal Basis
Fees Paid	All retainers, deposits, and payments for undelivered work	Civil Code 3300
Cover Costs	Additional amount paid to replacement professional above original contract	Civil Code 3300
Consequential Damages	Lost business, penalties, missed opportunities	Civil Code 3300; Lewis Jorge
Prejudgment Interest	10% per year from date of breach	Civil Code 3289
Attorney's Fees	If contract contains fee-shifting provision	Civil Code 1717
Punitive Damages	If fraud, malice, or oppression is proven	Civil Code 3294

💡 Example Calculation

Professional accepted $15,000 retainer 18 months ago, delivered nothing, and you had to pay $22,000 to a replacement:

Retainer paid: $15,000
Cover cost (excess): $7,000 ($22,000 - $15,000)
Prejudgment interest (18 months at 10%): $2,250
Total before consequentials: $24,250

Consequential damages (lost contracts, penalties) would add to this total.

📝 Sample Demand Letter Language

Use these templates as starting points. Customize with your specific facts and dates.

Opening / Identification

Sample: Opening Paragraph

I am writing to demand immediate refund of [$ AMOUNT] paid to you for professional services that were never delivered. On [DATE], I engaged your firm to provide [DESCRIPTION OF SERVICES] pursuant to our engagement agreement dated [DATE]. Despite paying the agreed-upon fee of [$ AMOUNT], you have failed to perform any of the contracted services.

Breach Description

Sample: Breach of Contract Paragraph

Under our agreement, you were obligated to [SPECIFIC DELIVERABLES] by [DEADLINE]. The deadline passed [X MONTHS] ago. Despite my numerous requests for status updates on [DATES OF COMMUNICATIONS], you have failed to deliver any of the promised work. Your last communication was on [DATE], after which you ceased responding to my inquiries entirely. This constitutes a material breach of our agreement under California contract law.

Damages Statement

Sample: Damages Calculation

As a result of your breach, I have suffered the following damages:

1. Fees paid for undelivered services: $XX,XXX
2. Additional cost to retain replacement professional: $X,XXX
3. Business losses from delayed project completion: $XX,XXX
4. Prejudgment interest at 10% per annum (Civil Code 3289): $X,XXX

Total Demand: $XX,XXX

This amount does not include attorney's fees or costs of litigation, which I will seek if this matter is not resolved.

Demand and Deadline

Sample: Demand Paragraph

I demand full payment of $XX,XXX within fourteen (14) calendar days of this letter. Payment should be made by [PAYMENT METHOD] to [PAYMENT DETAILS].

If I do not receive full payment by [DEADLINE DATE], I will pursue all available legal remedies without further notice, including filing a civil complaint for breach of contract, fraud, and violation of California Business & Professions Code Section 17200. I will also file a formal complaint with [RELEVANT LICENSING BOARD] regarding your failure to provide services for which you accepted payment.

📜 Licensing Board Complaints

For licensed professionals, a licensing complaint provides significant additional leverage. Below are the relevant California licensing boards.

⚖ Attorneys

State Bar of California
File complaint at: calbar.ca.gov
Can result in: Discipline, suspension, disbarment, restitution

📊 CPAs / Accountants

California Board of Accountancy
File complaint at: cba.ca.gov
Can result in: License revocation, fines, restitution

🛠 Contractors

Contractors State License Board (CSLB)
File complaint at: cslb.ca.gov
Can result in: Bond claims, license suspension, restitution

🏢 Architects / Engineers

CA Board for Professional Engineers
File at: bpelsg.ca.gov
Can result in: License action, fines

💡 Strategic Use of Licensing Complaints

Consider mentioning your intent to file a licensing complaint in your demand letter. For many professionals, the threat of license discipline is more concerning than civil liability. However, do not threaten criminal prosecution in exchange for payment—that can constitute extortion.

👥 When to Hire a Professional Malpractice Attorney

Professional service non-delivery cases can involve complex standards of care and licensing issues. Here's when you might handle matters yourself versus when professional representation makes sense.

✅ May Handle Yourself When:

Simple refund request under $5,000
Professional acknowledges non-delivery and offers refund
Clear contract terms show what was promised
No ongoing harm or consequential damages
Small claims court is an option

⚠️ Hire an Attorney When:

Damages exceed $15,000 including consequential losses
Professional malpractice standards apply (lawyers, CPAs, doctors)
You need expert testimony on standard of care
Licensing board complaints are advisable
Insurance coverage issues exist
Statute of limitations may be an issue
Professional is disputing the scope of engagement
The professional has retained legal counsel

📊 Not Sure If You Need an Attorney?

Professional malpractice cases often require expert analysis to establish liability. Take our free assessment to determine whether your situation warrants professional legal representation.

Take Free Assessment →

🚀 Next Steps

Gather all documentation – Collect engagement letters, payment records, communications, and evidence of non-delivery
Calculate total damages – Include fees paid, cover costs, consequential losses, and prejudgment interest
Send demand letter via certified mail – Keep proof of mailing and delivery confirmation
Set a clear deadline – Typically 14 days for response
File licensing complaint – If professional is licensed and fails to respond
Consult with an attorney – If amount exceeds small claims limit ($12,500) or involves complex issues

📚 Small Claims vs. Superior Court

California Small Claims Court handles disputes up to $12,500 (or $6,250 for businesses suing consumers). For larger amounts or complex claims (fraud, licensing violations), Superior Court is appropriate. Small claims is faster and requires no attorney, but you cannot recover attorney's fees.

California Professional Services Non-Delivery Demand Letter

📋 Overview: Professional Services Non-Delivery

Common Scenarios

💼 Paid Retainer, No Work

📄 Deliverables Never Received

🕑 Missed Critical Deadlines

🚫 Ghosting / Non-Responsive

👍 What You Can Recover

⚠ Time Limits Apply

👤 Professionals Covered by This Guide

⚖ Attorneys

📊 Accountants / CPAs

💻 IT Consultants

🎨 Designers / Creatives

📈 Business Consultants

🛠 Engineers / Architects

💡 Licensed vs. Unlicensed Professionals

⚖ Legal Basis

Key California Statutes

California Civil Code Section 3300

California Civil Code Section 3289

California Civil Code Section 1573 (Constructive Fraud)

California Business & Professions Code Section 17200 (UCL)

Key California Cases

📖 Applied Equipment Corp. v. Litton Saudi Arabia Ltd. (1994) 7 Cal.4th 503

📖 Lewis Jorge Construction v. Pomona Unified School Dist. (2004) 34 Cal.4th 960

📖 Stanley v. Richmond (1995) 35 Cal.App.4th 1070

🔍 Evidence Checklist

📄 Engagement Documents

💰 Payment Records

📩 Communications

📈 Consequential Damages

💰 Damages Calculation

💡 Example Calculation

📝 Sample Demand Letter Language

Opening / Identification

Breach Description

Damages Statement

Demand and Deadline

📜 Licensing Board Complaints

⚖ Attorneys

📊 CPAs / Accountants

🛠 Contractors

🏢 Architects / Engineers

💡 Strategic Use of Licensing Complaints

👥 When to Hire a Professional Malpractice Attorney

✅ May Handle Yourself When:

⚠️ Hire an Attorney When:

📊 Not Sure If You Need an Attorney?

🚀 Next Steps

📚 Small Claims vs. Superior Court

Need Help With Your Professional Services Dispute?

🔗 Related Demand Letter Guides

California Unpaid Invoice Demand

California Vendor Non-Performance

California Breach of Contract

Freelancer Non-Payment

📝 Create Your Demand Letter