[snip]
: As this is a very small market, for this one client I did not create a

: contract - there was however a very detailed proposal which did not
include 
: any source files.  Whether it'll stand or not, we also had a verbal 
: agreement that they did not want any source files as at the time that
we 
: began our relationship, I had informed them that the source files
would 
: cost extra - the client at that time agreed that they did not want any

: source code.
[/snip]

Ah, a he said / he said thing.  I have a feeling that you may be
creating some very bad blood in your small market if this client wants
to smear you. Send them a letter to the affect that you verbally agreed
that access to source code would cost extra and see where that lands
you. "Per our agreement on this date, the source code is available to
you at the cost of foo" Watch how quickly their memory clouds up.

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