Customer Won A Chargeback After Major Auto Repair — Can I Still Sue To Recover The Money?

Hi everyone, I own a small automotive repair shop in Louisiana and need some legal guidance on a chargeback that a customer filed.

A customer had their Infiniti towed to my shop because it was undrivable. We diagnosed a failed CVT transmission, sourced the correct replacement, installed it, filled it with fluids, performed programming, and completed the repair. The customer picked up the vehicle, paid the invoice through Square at the time of pickup, and drove the vehicle for several weeks afterward.

I don’t have a signed physical invoice because the pickup communication happened through text, and payment was processed through a Square mobile POS device. However, I do have: • A Square receipt showing the customer completed the payment • Text messages from both the husband and wife confirming pickup arrangements • Texts showing they received the vehicle and were driving it • A photo of their tow truck picking the vehicle up from my shop • Parts invoices • Full communication of the repair timeline • Follow-up texts about unrelated issues (overheating, leaks, etc.)

The repair came with a 6-month parts-only warranty, which I explained. When the transmission started acting up again later, I tried to honor the warranty. The problem was that this specific Infiniti uses a unique transmission model, and the only available replacements were new units costing far more than the original job. Because the warranty only covered used parts, the only thing I could legally refund was the parts cost, which I communicated several times.

Instead of accepting the warranty solution, the customer filed a chargeback with their bank under “services not received.” Square submitted all of my documentation, but the cardholder’s bank ruled in their favor, and $4,050 was withdrawn from my account. Square says there is no further appeal.

So at this point the customer has: • The completed transmission replacement • Weeks of use • Warranty attempts • And their full money back

My questions: 1. Can I pursue the customer in small claims court even though the bank sided with them? 2. Is the chargeback essentially treated as a civil debt I can collect? 3. Will my evidence hold up in court (texts confirming pickup, payment receipt, photos, repair documentation, warranty communication, etc.)? 4. Should I send a formal demand letter before filing? Does it need to be certified mail? 5. Has anyone dealt with a similar situation where the customer used a chargeback to avoid paying for major work?

I’m trying to handle this professionally, but I don’t want to take a $4,050 loss for a job that was completed and documented.

Any legal guidance would be greatly appreciated

Location: Louisiana