I think that Abigail-II did a good job at summing it up. It may have been slightly harsh, but it's a very honest answer that holds a lot of truth. For example, someone posting as Anonymous Monk was talking about getting verbal evidence. As Abigail-II said, we are not going to understand the laws as they stand in your state. If I'm not correct, will some (many, all?) states not completely disregard recorded telephone calls, saved emails, and any other media such as these? They just aren't hard enough evidence to stand in court.

My advice (non-legal, as it is all I can offer): Do you consider this friend of yours to be an especially close friend? The actions you take now will most likely reflect the answer to that question. If you are such great friends, I doubt you will let this come between you (unless these few modules you're having written are going to be worth millions of dollars, which I also doubt). If you are even considering taking legal action in the matter, it would seem to me that you are not such great friends. I find it hard to imagine that a written contract was not pieced together considering you are paying $3000+ for this task.

My final views: money is a terrible thing; it makes people greedy and power-hungry. Friendships get torn apart because of this greed. Sometimes, the split between 'friends' leaves both sides better off, but in most cases, it's a sad thing to witness. Think about things closely and consider all of your options before making a final decision.

      C:\>shutdown -s
      >> Could not shut down computer:
      >> Microsoft is logged in remotely.