Legal Question in Business Law in California

Liability for project with no contract

I was recently subcontracting for web

development work for a web designer

located in Australia. The project didn't

go well, and the designer's client

(also in Australia) wants to hold me

liable for the losses that resulted

from the project going awry.

I was not hired by the web designer's

client and I have not signed any

contracts.

Can the client hold me liable for the

losses of his business?


Asked on 5/14/08, 7:02 pm

2 Answers from Attorneys

Gregg Gittler GITTLER & BRADFORD

Re: Liability for project with no contract

More facts are needed to fully analyze and answer your question. The extent of your risk may depend on why the client believes you are responsible for the losses - whether he contends you did something that constitutes negligence (rather than simply breach of contract). Also, the client may be able to claim status as a third party beneficiary under your subcontract (i.e., the subcontract was for the benefit of the client). That would depend on the language of your contract. Finally, there may be an issue as to whether (a) any claim against you would be determined by Australian law, or California law, and (b) whether the client would be able to sue you in Australia. (If he could, and if you were subject to Australian jurisdiction, he may be able to domesticate and enforce the judgment in California under existing treaties.)

Depending on the amount of the claim against you, it may be wise to engage the services of an attorney to go over all of the facts, charges, and documents and advise you as to your exposure.

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Answered on 5/14/08, 7:39 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Liability for project with no contract

I agree with the preceding answer by Mr. Gittler.

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Answered on 5/14/08, 8:30 pm


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