Help with taking legal action agaist a builder please

narabanekeater · 18 October 2016 at 5:26PM

I shall keep this as brief as possible
I signed a contract for some work to be completed with a sole trader in 2014, work commenced in 2015.
The business registered with companies house in Feb 2016 using the same business name so the sole trader now became the Proprietor. I was not informed of this.
I shall now be perusing this through the small claims court as work is outstanding and communication broken down.
Am I perusing this builder as a SE sole trader which he was when I signed the contract or now as a Limited Company? He lodged a large amount of money with Companies House when he registered.
I guess im asking that through the small claims do I stand a chance of getting paid out as I know the business is not doing well with poor cash flow. The amount I would be claiming for would be around £5000.

phil24_7 · 18 October 2016 at 6:44PM

It depends on your contract, communications between you and any evidence you have. It then depends on what assets the person/company in question has and how clever they are in hiding their wealth, wording their contracts/any messages. You can probably go after the company AND the owner (jointly and severally) because of the way things are structured now.

teneighty · 19 October 2016 at 8:53AM

Who were payments made too and when did the breach occur that you are claiming £5000 for?

It is a legal requirement for a limited company to clearly display their company details and company registration number on all official documents and correspondence so he could not have concealed the fact that he was trading as a Limited Company without breaking the law.

narabanekeater · 19 October 2016 at 10:07AM

Good Morning and thanks for your reply. The business name has remained the same throughout so as both a Sole Trader and Limited Company.
The contracts which are signed and dated outlining all that payment covers were from when the builder was a sole trader. However many months after signing this the business stayed the same in name but the builder registered himself as a limited company with Companies House.
I was not made aware of this as my contracts were as I said made before then. I found out about the company turning into a limited company from searching Companies house myself where he lodged a sum of over 10k with.
I have tried to make an appointment with The Citizens Advice but there's over a 3 week wait. So to clarify all payments were made to the builder as a sole trader and all I have receipts for.

teneighty · 19 October 2016 at 10:55AM

narabanekeater wrote: »

Good Morning and thanks for your reply. The business name has remained the same throughout so as both a Sole Trader and Limited Company.
The contracts which are signed and dated outlining all that payment covers were from when the builder was a sole trader. However many months after signing this the business stayed the same in name but the builder registered himself as a limited company with Companies House.
I was not made aware of this as my contracts were as I said made before then. I found out about the company turning into a limited company from searching Companies house myself where he lodged a sum of over 10k with.
I have tried to make an appointment with The Citizens Advice but there's over a 3 week wait. So to clarify all payments were made to the builder as a sole trader and all I have receipts for.

He must have gone from "Bob the Builder" to "Bob the Builder Ltd." so if he was still trading as the former that would suggest he was still trading as a sole trader or was using it as a trading name. If payments were made to the former that reinforces your argument.

Although it doesn't really make any difference. As a sole trader or a limited company it boils down to whether he has any assets to settle the claim.

Voyager2002 · 19 October 2016 at 10:59AM

narabanekeater wrote: »

I shall now be perusing this through the small claims court as work is outstanding and communication broken down.
Am I perusing this builder as a SE sole trader which he was when I signed the contract or now as a Limited Company? £5000.

Did you really mean "perusing" (which means "reading")?

A basic rule when doing anything through the courts is to say exactly what you mean. Using long words that you do not understand is a great way to irritate judges and lose your case.

Voyager2002 · 19 October 2016 at 11:02AM

By the sound of things you have good evidence that your contract was with the individual builder: the fact that he then set up a limited company is not relevant. So if you win you would have a claim against his personal assets (house, car, whatever). Presumably he later set up the company to avoid exposing his personal wealth in this way.

narabanekeater · 19 October 2016 at 11:18AM

Thank you very much for your help and I shall make sure to proof read at least twice. Wishing you both a good day.

Rain_Shadow · 19 October 2016 at 11:29AM

narabanekeater wrote: »

I was not made aware of this as my contracts were as I said made before then. I found out about the company turning into a limited company from searching Companies house myself where he lodged a sum of over 10k with.
I have tried to make an appointment with The Citizens Advice but there's over a 3 week wait. So to clarify all payments were made to the builder as a sole trader and all I have receipts for.

Why would anyone give Companies House £10k?

narabanekeater · 19 October 2016 at 1:16PM

Rain Shadow that is a very good question and one i'd also like to know the answer to but I never will find out. As Voyager said above I shall have to claim against his own assets and to be honest I do not think there will be many.
He doesn't own his property- its in his wifes name only. and I believe although have no proof that he rents the works van. So things do not look good for me sadly.

Rain_Shadow · 19 October 2016 at 8:34PM

narabanekeater wrote: »

Rain Shadow that is a very good question and one i'd also like to know the answer to but I never will find out. y.

I know it probably isn't relevant but I'm intrigued to know how you know about the £10k.

If you form a company you don't give CH anything except the registration fee AFAIK. They wouldn't/couldn't accept any other payment. What are you looking at to see this £10k? It isn't just the company's share capital is it?

Help with taking legal action agaist a builder please

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free