Client requested return of funds from escrow. Need help with this statment.

[sadiamansab]

From a previous client, I got 2nd milestone job on a contract.

It was not a new contract, Milestone was added to old contract which was not closed yet.

I began working, but the client began demanding results. I informed the client that the task was lengthy and that I would need more time to complete it.
Client agreed, but after a few hours, he became frustrated and ended the contract. I got a message,

"(Client) has requested return of funds from escrow." (amount 120)

I understand, what it means, but still I'm confused, because both milestone ( previous and new) were same budget amount (120 previous, 120 new).

[Previous milestone amount was approved]

I need your help to understand this phrase.

Thanks.

[AndreaG · Accepted solution]

Hi Sadia,

Since the first milestone was approved and released to you those funds are no longer in Escrow. Your client can only request an Escrow Refund for the second milestone. You have 7 days to reply to your client's request, if you dispute the refund your client will have the chance to accept or reject your dispute and go ahead and send the case to the mediation team. You can learn more about Fixed-Price Protection here.