My husband and I run a cleaning business and we have just dealt with the client from hell!

The main problem started two months ago when he accused us of pulling out power cords and losing computer data. He complained that he would have to pay a data retrieval company to fix it. I asked the staff and no one took blame for it and I believe them. I said to him if he comes up with hard evidence that we are at fault i am more than happy to claim expenses through my insurance company.

Today he rang demanding $1200 for hiring the relevant specialist to fix the problem. He could not however prove that we did it. I asked if he could pin point the exact time the crash happened and he couldnt. He then threatened legal action. He said he had proof from the alarm company that we where the only people in the building after his staff left. I didn't deny we where in there I just wanted an exact time this accurred! How am I to know one of his staff not to blame?

At that point I was so angry that I said keep our outstanding invoice amount and I will return your keys and cut all ties. He then crapped on about principle and the untrustworthiness of my staff which made my blood boil! I went on to tell him that I trust and believe in my staff and if I didn't then what would that say about me?!!

This infuriated him and he ended the conversation by telling me he will be taking the matter up with his lawyer.

So I got my own legal advice which was to not give in and apologize or pay for anything. Lawyer also said to not return keys until I have received my payment for cleaning.

The client sent me a threatening email stating that if I didn't return the keys by tomorrow morning he will change the locks and security codes and he will seek compensation. I replied by politely stating my lawyer had instructed me not to return anything till payment is received. He then replied stating payment will be made in compliance with regular terms (7 days so next Monday) and once keys are returned!

Ahhhh this man just won't budge! I just know if I hand in those keys I can kiss my $770 goodbye!

So what would you do? Stand strong and not give in? Or bite the bullet hand in the keys and kiss my hard earnt money goodbye?