I have a client who I do the cold calling for her from home who pays me $200.00 for every 5 appointments I set for her webhosting company. Her web-hosting company also hosts my website that has all the information about my services. I was slow on getting the appointments due to being busy working for other clients that I do the same thing for. I set 2 appointments for her and now she wants a refund for the 3 appointments I still owe her. I let her know that my financial situation did not permit me to issue a refund because I simply lacked the funds, however I was willing to get her the remainder of what I owed her because It was a slow week and I could generate those easily for her. She sent me all kinds of e-mails about how she is going to take me to court and that I stole from her etc. Well now she took it upon herself to go into my web account and manipulate my website and publishing all over it that I am a horrible business owner, do not go with this company, he steals, HELP, etc. My current and potential clients review my website and I do not know how much damage she has done since I do not know how many people have seen it. She used my name first hand and is damaging my reputation as a business owner. Can I sue?

Yes, you may sue her for that and some other issues.

As for as owing her the money, yes you owe her a refund. The real issue is that they should not have paid you till you did the appointments, ( that is how it normally works)

Yes, you do have grounds for a suit. However, you will have to prove you suffered financial damage as a result of this. I hope you IMMEDIATELY moved your site to a different host.

Frankly, though, there is some truth to what she is saying. You should not have accepted money until you performed the services. You should have been prepared to offer a refund if you did not perform the services.

A court will look at the truth behind her claims in determining a judgment.