[TX] Paid a contractor in full for 5 business applications, 3 were never submitted. Does an arbitration/mediation clause block small claims?
Location: Texas
I own a small business and hired a consultant in March to submit 5 applications on my behalf (insurance network applications for my practice). We signed a written agreement.
Key facts:
The invoice was $1,000 total, $200 per application.
The signed agreement says 50% is due before work starts and the remaining 50% is due "when all documentation and contracts have been submitted."
The consultant confirmed by email that all applications would be submitted that night or the next day. I paid the first half that day, received an invoice reminder for the second half a week later, and paid it. I have receipts for both payments.
Months later, a second professional checked for me, and 3 of the 5 applications have no record of ever being submitted.
Communication has been very limited since spring. When I recently asked about a partial refund, the response was that it's "not how that works."
The agreement has no refund clause. It allows either party to terminate immediately for material breach.
Payment was by Zelle, so I don't think a bank dispute is realistic.
I plan to send a written request for $600 (the 3 unsubmitted applications) with a deadline, and to terminate the agreement.
My questions:
The agreement says that before any lawsuit, disputes go to "mandatory mediation or binding arbitration at the Consultant's option," with mediation completed before filing any legal action. If I invoke this in writing and the consultant never elects either option, can I file in Justice Court?
If the consultant does choose arbitration, the contract doesn't say who pays fees or which provider is used. For a $600 claim, how does that usually play out?
Is requesting $600 reasonable here, or would I be entitled to more or less?
I'm also planning a low-cost consult through a lawyer referral service, but wanted to understand my options first. Thanks for any insight.