Can I recover money from a developer who didn't finish my project?

Yes. Under California contract law, you can recover all payments made for undelivered work, additional costs to hire a replacement developer, and consequential damages like lost revenue. If the developer used milestone payments, you're entitled to refund of all payments for uncompleted milestones.

Who owns the code if my developer didn't finish?

Without a written work-for-hire agreement assigning IP rights, the developer may retain copyright in the code. However, you likely have an implied license to use any code you paid for. If code was delivered, demand all source files, documentation, and any necessary credentials or access.

My developer disappeared with my deposit. Is that fraud?

Taking money with no intent to perform is fraud under California law. Indicators include immediate non-responsiveness after payment, no work performed whatsoever, fake portfolio or references, and a pattern of similar complaints. Fraud allows punitive damages and extended statute of limitations.

I used a freelance platform. Can I still sue the developer?

Yes. Platform terms typically disclaim platform liability but don't prevent you from suing the freelancer directly. You may also have claims through the platform's dispute resolution or payment protection systems. Review the platform's terms for available remedies before going to court.

California Web Developer Non-Delivery Demand Letter | Software & App Development Breach

💻 Overview: Web Developer Non-Delivery Claims

Web development disputes are common B2B conflicts. Whether a freelancer ghosted after taking your deposit, an agency delivered half-finished work, or an offshore team went silent—California law provides remedies to recover your money and, where applicable, your code and intellectual property.

Common Non-Delivery Scenarios

🚫 Ghosting After Deposit

Developer took payment and disappeared without delivering any work

🛠 Incomplete Project

Project started but abandoned partway through, leaving non-functional code

🕑 Endless Delays

Repeated missed deadlines with no end in sight, draining budget

🔒 Code Held Hostage

Developer demands additional payment to release code or credentials

👍 What You Can Recover

Direct damages: All fees paid for undelivered work
Cover costs: Additional cost to hire replacement developer
Code & IP: Source code, documentation, and credentials for work you paid for
Lost revenue: Business losses from project delays (if provable)
Prejudgment interest: 10% per year (Civil Code 3289)
Platform remedies: Chargebacks, escrow recovery through freelance platforms

⚠ IP Ownership Warning

Without a written work-for-hire or IP assignment agreement, the developer may retain copyright in the code they wrote. This doesn't mean you lose your money—it means you should demand code delivery as part of your settlement, and consider IP assignment language in your demand.

📄 Project Types Covered

This guide applies to disputes with developers for any type of software or web project.

Project Type	Typical Deliverables	Common Issues
Website Development	Source files, CMS setup, hosting configuration, design files, documentation	Incomplete pages, broken functionality, no admin access
Mobile App Development	Source code, app store listings, backend access, API documentation	Crashes, missing features, rejected from app stores
Custom Software	Source code, database schemas, deployment scripts, user documentation	Non-functional, missing features, can't be deployed
E-commerce Site	Store setup, payment integration, product import, theme customization	Payment processing broken, security issues, incomplete setup
WordPress / CMS	Theme files, plugin configurations, content migration, admin training	Broken plugins, poor theme code, no documentation
API / Integration	API code, documentation, test credentials, deployment	Doesn't work with target systems, poor error handling

⚖ Legal Basis

California law provides multiple remedies for web development non-delivery.

Key California Statutes

📚

California Civil Code Section 3300

Contract damages include the amount that will compensate for all detriment proximately caused by the breach. For development services not delivered, this includes all payments made plus consequential business losses.

📚

California Civil Code Section 3289

Provides 10% per annum prejudgment interest on contract damages. Applies from the date of breach when developer failed to deliver.

📚

17 U.S.C. § 101 (Work for Hire)

Federal copyright law governs whether code created by a contractor is a "work for hire" (owned by client) or owned by the developer. Written assignment agreements are crucial.

📚

California Business & Professions Code Section 17200

The Unfair Competition Law allows claims against developers who engage in unfair or fraudulent business practices, including taking payment without delivering services.

Key Cases

📖 Community for Creative Non-Violence v. Reid (1989) 490 U.S. 730

U.S. Supreme Court established the test for whether a commissioned work is "work for hire." Unless there's a written agreement, independent contractor work is generally owned by the contractor, not the client. This underscores the importance of IP assignment clauses.

📖 Effects Associates, Inc. v. Cohen (9th Cir. 1990) 908 F.2d 555

Ninth Circuit (covering California) held that even without a written agreement, a client who commissions and pays for creative work receives an implied license to use it for its intended purpose. You have rights even without a perfect contract.

🔒 IP & Code Ownership

Understanding code ownership is critical in development disputes.

📝 Written Work-for-Hire

If your contract has work-for-hire or IP assignment language, you own all code upon payment

📄 No Written Agreement

Developer may retain copyright but you have implied license to use code for intended purpose

💳 Partial Payment

You're entitled to code proportional to payment made, or refund of overpayment

🔒 Code Hostage Situation

Demanding additional payment for code you already paid for may be extortion/conversion

💡 What to Demand Regarding Code

All source code files (not just compiled/minified versions)
Database schemas and any stored data
Login credentials for hosting, domains, third-party services
Documentation and deployment instructions
Written assignment of all IP rights (if not already in contract)

🖩 Web Developer Nondelivery Damages Calculator

Use this interactive calculator to estimate potential damages in your case. Enter your information below to get an estimate of recoverable damages.

Direct Financial Loss ($) Actual money lost or spent

Consequential Damages ($) Additional losses caused by the issue

Emotional Distress Level

Statutory Penalty Type

📈 Estimated Damages Breakdown

Direct Damages $0

Consequential Damages $0

Emotional Distress (Est.) $0

Statutory Penalties (Est.) $0

TOTAL ESTIMATED DAMAGES $0

Disclaimer: This calculator provides rough estimates for educational purposes only and does not constitute legal advice. Actual damages vary significantly based on specific facts, evidence strength, and many other factors. Consult with a qualified California attorney for an accurate case evaluation.

🔍 Evidence Checklist

Gather these materials before sending your demand letter.

📄 Contract & Agreements

✓ Signed contract or proposal
✓ Statement of work / requirements doc
✓ Milestone schedule and deadlines
✓ IP ownership / work-for-hire terms

💰 Payment Records

✓ All invoices received
✓ Payment confirmations (PayPal, wire, CC)
✓ Platform records (Upwork, Fiverr, etc.)
✓ Escrow release records

💻 Deliverables Status

✓ Screenshots of current project state
✓ List of what was vs. wasn't delivered
✓ Bug reports / issues list
✓ Any code/files actually received

📩 Communications

✓ Emails requesting updates/delivery
✓ Developer's excuses and promises
✓ Evidence of non-response/ghosting
✓ Slack, Discord, or other chat logs

💰 Damages Calculation

Calculate your total claim using these categories.

Damage Category	Description	Evidence Needed
Development Fees Paid	All payments for undelivered milestones/work	Invoices, payment records
Cover Costs	Additional cost to hire replacement (excess over original)	New developer quotes/invoices
Wasted Third-Party Costs	Hosting, domains, tools paid for but unusable	Subscription receipts
Launch Delay Losses	Lost revenue from delayed launch	Business projections, historical data
Prejudgment Interest	10% per year from breach date	Date of breach, demand amount

🔢 Example Calculation

Paid $12,000 for e-commerce site development. Developer delivered nothing after 6 months.

Development fees paid: $12,000
Replacement developer (additional over original quote): $4,000
Wasted hosting/tools (6 months): $600
Prejudgment interest (6 months at 10%): $600
Total claim: $17,200

📝 Sample Demand Letter Language

Opening Paragraph

Sample: Opening

I am writing to demand a refund of $[AMOUNT] paid for web development services that were never delivered. On [DATE], I contracted with you to develop [PROJECT DESCRIPTION - e.g., "a custom e-commerce website"] for a total price of $[CONTRACT AMOUNT]. I have paid $[AMOUNT PAID] to date, and you have failed to deliver the contracted work.

Breach Description

Sample: Breach Description

Under our agreement, you were obligated to deliver the following milestones:

• Milestone 1: [DESCRIPTION] by [DATE] – NOT DELIVERED
• Milestone 2: [DESCRIPTION] by [DATE] – NOT DELIVERED
• Milestone 3: [DESCRIPTION] by [DATE] – NOT DELIVERED

As of today, [X MONTHS] past the agreed completion date, you have delivered [NOTHING / only partial work consisting of: ...]. Despite my repeated requests for updates on [DATES], you have [stopped responding / provided only excuses / failed to make progress]. This constitutes material breach of our agreement under California contract law.

Code & IP Demand

Sample: Code Delivery Demand

In addition to the refund demanded above, I demand immediate delivery of all work product created under our agreement, including:

• All source code files (uncompiled, with comments)
• Database schemas and any data created
• Design files (PSD, Figma, Sketch, or other source files)
• All login credentials for hosting, domains, and third-party services
• Documentation sufficient for another developer to continue the project

Under our agreement [and/or applicable law], I own all intellectual property rights in work created under this engagement. Failure to deliver this work product upon demand may constitute conversion and will be addressed in any legal proceedings.

Demand and Deadline

Sample: Final Demand

I demand the following within fourteen (14) calendar days of this letter, by [DATE]:

1. Full refund of $[AMOUNT] via [PAYMENT METHOD]
2. Delivery of all code, design files, and credentials as described above
3. Written confirmation of IP assignment for any work delivered

If I do not receive full payment and deliverables by the deadline, I will pursue all available legal remedies without further notice, including filing a civil complaint for breach of contract, conversion, and violation of California Business & Professions Code 17200, as well as pursuing any available platform dispute remedies.

📱 Freelance Platform Disputes

If you hired through a freelance platform, additional remedies may be available.

🎯 Upwork

File dispute within 180 days. Hourly contracts have payment protection. Fixed-price requires milestone-based escrow release.

🚀 Fiverr

Request revision or cancellation through order page. Fiverr may mediate. Keep all communication on-platform.

🤝 Toptal

2-week trial period with refund policy. Contact talent success manager. Strong quality guarantees.

💰 Direct Payment (PayPal)

File dispute within 180 days. "Services not received" is valid dispute category. Provide documentation.

💡 Platform vs. Legal Action

Platform dispute resolution is often faster and cheaper than legal action. However:

Platform decisions don't prevent you from also suing
Platforms may only refund up to amount in escrow
For large projects, legal action may be necessary for full recovery
File platform dispute first to preserve time limits, then evaluate legal options

👥 When to Hire a Web Developer Dispute Attorney

Web development disputes often involve code ownership, access issues, and significant project investments. Here's when you can handle matters yourself versus when professional help makes sense.

✅ May Handle Yourself When:

Project cost under $5,000
Developer is responsive and acknowledges non-delivery
Work was done through a platform with dispute resolution
Clear contract terms and documented deliverables
Small claims court is appropriate for the amount

⚠️ Hire an Attorney When:

Project investment exceeds $15,000
Developer has disappeared or is unresponsive
Code ownership or IP is disputed
Developer is holding domain, hosting, or code hostage
Business losses from website downtime are significant
Developer is overseas and collection may be difficult
Contract has arbitration or venue selection clauses
The developer has engaged legal counsel

📊 Not Sure If You Need an Attorney?

Web development disputes can involve both financial losses and ongoing business disruption. Take our free assessment to determine whether your situation warrants professional legal representation.

Take Free Assessment →

🚀 Next Steps

Secure what you have – Download any code/files delivered, screenshot project status, save all communications
File platform dispute – If applicable, file immediately to preserve time limits
Calculate damages – Include fees, cover costs, wasted expenses, lost revenue
Send demand via certified mail and email – Keep proof of delivery
Set 14-day deadline – Reasonable time for response
Get quotes from replacement developers – Document cover costs
Credit card chargeback – If paid by card, dispute within 60-120 days
Consider small claims – Up to $12,500 without an attorney

⚠ Offshore Developers

If the developer is overseas, enforcement may be difficult. Prioritize:

Platform dispute resolution (platforms have leverage)
Credit card/PayPal chargebacks
Demand letter may still prompt settlement
California courts can enter judgment, but collection may require foreign enforcement