My question involves business law in the state of: California
I am a website designer, I entered into a contract with a film production company to finish their website. Well I completed 60% of the project, the final piece that I needed was the video content. I met with the company representative, and was given a $200 and a hard drive that had the film files. I got back to my office, and made my daily deposits which included the check I had just received.
When I begin working on the website again, I tried to retrieve the files from the hard drive and found that it was not compatible with my PC. I immediately let them know, they suggested that I find a compatible computer. So I did, however, the files still would not transfer from that PC to mine. At this point, I could not work on the project for a few days, because I had military duty. I emailed my client and let them know.
Well when I come back from my few days at drill, the client calls my house and threatens to come out to me with the police. So I immediately called her back, now she claims that she never got the email, and that I committed fraud to scam her out of the $200 deposit.
I emailed her supervisor that day I offered to UPS overnight her deposit and hard drive back to her. He told me to call him that evening to discuss the matter, and I called. However, he never returned my phone call. Three weeks later, she emails me and gives me a three day ultimatum to meet with her and return the money and hard drive.
At this point, she seems a little off, so I again state, that professionally I can send it to her with a tracking number. I don't want to meet with her.
She claims now that she is going to file a police report for stolen property, and sue me for breach of contract. Is this possible since I stayed in communication with them, and their hard drive was faulty?

