Consumer Protection Law
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If he continues to insist, before he files suit, you should file suit against him for poor performance and refund of the amount he was paid under a breach of contract scenario. Although you may not necessarily prevail, it may cause him to reconsider his stance. Depending on the amount paid, you could file in small claims court. If he agrees to back off, then you should have him execute a release of claims so that he does not come back later asking to be paid. In Texas, he has up to 4 years to file a breach of contract claim.