MWpro - 6:23 am on Nov 16, 2009 (gmt 0)

By the way: Of course you have a contract. You do not have a written contract. That's a difference. But I guess you have enough emails to prove that an (oral) contract exists, and what the outlines of the contract are.

I am going to second this and am surprised no one else has brought this up. Aside from the local reputation concerns mentioned by archaxis, you have no reason not to take them to small claims courts (assuming you live in the States).

You may not even need to hire a lawyer, although it wouldn't hurt to get a consultation (especially if you have friends who are lawyers). It seems like you have enough evidence to prove the existence of a contract and that they breached it.

Send them an invoice and if they don't pay it then consider filing in small claims court.

Lack of a written contract does not automatically equal defeat, although a written contract would make things easier and should always be done going forward.

Disclaimer: I am not a lawyer and my above post is not intended to constitute legal advice or create a lawyer-client relationship.