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kmb40 - 6:25 pm on Jan 22, 2008 (gmt 0)
You cant change the past but you will have to accept some of the impact of the mistake that was made. Unless you want to spend the time and money to resolve this legally, you will likely eat that project. I also sounds as if your placing too much weight on your responsibility in this friendship. Seems your friend would be more concerned with a resolution since the project was brought to you by him. Your response should be to let the client know your seeking pay for your work and let your friend know his referral stiffed you. If you dont get a response and you feel its worth the cost and effort, pursue legal action.
I strongly agree with the response from jtara.