Tillman, This is unfortunate and I’m sorry you’re going through this.
Some of the things you’ve said don’t quite make sense or don’t add up completely. It appears you will lose in some way if you play hardball, softball, or any ball that is not perceived as “their” ball. There is more to this story than meets the eye I suspect.
Answer a couple of questions:
1) You agreed to complete the project in two months…but elude to “some time later”, and they asked you to “work on the project again” indicating you never completed the assignment in the first place “some 10 months later”. This would seem to place you in a supremely week negotiating position my friend. They will claim you were incompetent and didn’t deserve to be paid. Since this admittedly was your day job, (depending your locale’s right-to-work laws), this could be grounds for dismissal. I would be cautious about taking an offensive posture unless you’ve got really solid rationale behind these vague statements. Do you?
2) If you accepted this assignment as your “day job” and you accepted a salary and deposited those funds into your bank account, from the perspective of any reasonable business, you were certainly paid. You’ve stated your day job was working on the project, you want to believe you have leverage over you employer concerning the code. When you took the assignment as “your day job” rather than as the outside consultant, your relationship changed and you lost your leverage. Unfortunately, your employer owns everything you’ve create since that day. Since you probably don’t have a contract for when you were a contract consultant, you are way behind the eight ball in this whole thing. My attorney told me a long time ago that when dealing with another party that may turn into a legal matter, the party that has the most money can always out last the weaker opponent. How much money do you have to invest win your intellectual property suit? And if you have to take a loan to sue to world over this, will your CRM be profitable enough to sell and make back all your legal fees?
Welcome to the shitty side of consulting.
Sorry for you loss,
Randy