Issues in legal manners (General Contractor)?

raeyee

New member
Hi ,
I am a general contractor of California.
Back in 10/23/09, I have had a renovation work of a private residence
For the plumbing work, I made $4,500.00 contract with "A" company as my sub.
On the second day of work started, the owner wanted some additional work.
I asked the cost of additional work to "A" and "A" offered very high
amount for the additional work. While negotiating the amount, "A" and I
have agreed verbally to cancel the whole contract and "A"
left the site. (I have a witness)
I've paid him $600.00 for the 2 days work.

On 04/21/10, "A" lawer sent me a following letter :

Quote
Breach of Contract Re Plumbing Work

This letter is to advise you that we represent "A". The contents of this letter
shall be deemed privileged under Evidence Code Sections 1119, 1122,1152, and 1154.

You entered into a contract with "A" for plumbing services on 10/23/09.
Attached is a copy of that contract. Under that contract, you were to pay $4,500.00 to
"A" on completion of the work.

"A" completed the required work. Our client was waited for you to comply
with the aforementioned contract by paying the $4,500. You have failed to pa that sum.
You are requested to immediately pay that sum of 4,500.00 to our client plus $500 in
costs and fees incurred as a result of your breach within ten (10) days.

Should you fail to comply with our demand in a time manner, we will immediately
commence a lawsuit against you seeking both compensatory and punitive damages.
After the filing of tht lawsuit, you will be liable to pay additional damages our client's
damages and costs will be much greater.

This letter is not intended as a full enumeration of our client's right, remedies,
claims or defenses, or the factual bases thereof, each of which is expressly reserved.
Unquote

Of course, the above letter is not true. "A" is threatening me to pay the whole amount
"A" worked for just 2 days and I have paid.

Please advise to me how to handle the matter.
Thank you so much for the great help.
 
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