Client asking to release approved milestone payment

[ctacservicess]

Hi Community Guru's,

A bad experience and need your quick advise. Client raised a dispute on advise of his consultant after Go-live and all testing. There were three milestone, he approved two and i got payment. He put hold on third one and blocked my access, now he is demanding me to release payment in escrow for third milestone (which i did just to avoid dispute and bad rating at upwork) + all pyament he made for previous milestone which he aprroved. He also send me final warning and threating to file legal and claim all payment + business loss. Also client have ended contract.

I updated and did multiple follow-up at dispute number but no update from upwork team  (21799287).

Please guide and suggest.

Thanks,
Nishant

Extract from Client last message:
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**Edited for Community Guidelines**

[kochubei_valeria]

Hi Nishant,

It looks like our Dispute team is currently reviewing your case and all the information you and the client provided. I've followed up with them and they'll update you directly via the ticket as soon as possible.

Thanks!

[ctacservicess]

Thanks Valeria, appreciated. 

I don't have to do anything or reply client on his 6-Sept deadline and hope upwork will settle this out.

[petra_r]

Did you outsource that contract via **Edited for Community Guidelines**?

[ctacservicess]

Dear Petra, 

No it was not via **Edited for Community Guidelines**, actually i had some resource cruch (couple of guys left suddenly), so i informed client that if he wants i can cancel the project and refund him OR can get this project done from local freelancer. I can honest and transparent to him at every step. Even i spend more than what i got from client just to keep my words and don't leave the client in between. Client had lot many changes, even after approval but i never said NO to any change. Finally after it went on his live server and all testing done, next day he told lot many issues based on review from his consultant, i was ready to fix but he blocked access and filed dispute.

Thanks

[petra_r]

Was payment for milestone One and / or Two less than a month before the dispute date?

[ctacservicess]

Milestone 1 - Paid on Jun 7th
Milestone 2 - Paid on Jul 16th

Dispute and Contract end - Aug 27th

Thanks

[petra_r]

---

@Nishant C wrote:

Milestone 1 - Paid on Jun 7th
Milestone 2 - Paid on Jul 16th

Dispute and Contract end - Aug 27th

---

 Neither milestone 1 or 2 can be disputed through Upwork.

The client is free to sue you outside of Upwork.

[ctacservicess]

Thanks, appreciated.

[kat303 · Accepted solution]

Nishant - The client can only dispute the last payment (3rd) milestone. Since you've already refunded the money for the 3rd milestone, there's nothing to dispute. The time to file a dispute for the 1st and 2nd milestone has expired. 

The feedback you received already will not disappear after a dispute or after a refund since you've already been paid. Although there won't be feedback for the 3rd milestone due to your refund, PRIVATE feedback will still stay and that is what will affect your JSS score.

As for the client suing you. If you and the client live in different countries, then International law would have to take affect. That would be extremely costly as well as extremely time consuming for the client. Also, they are very hard to enforce when dealing with "small" claims. 

[ctacservicess]

Thanks for detailed answer, much appreciated.