Small Claims Court and being self employed

suzyleusby

Hi all,
I'm a self employed freelance web designer and have two clients that are refusing to pay for their websites which I have designed and created. They want the websites but are messing me about with payments which were due September last year. I have sent the three warning letters with not much success.
I just want to ask if anyone has any experience with taking something like this to the small claims court? Is it worth it to get my money as I am owed over £4000 in total. I do not have contracts in place but do have email correspondance saying they want and are happy with the websites etc
Suzanne

Wywth

suzyleusby wrote: »

Hi all,
I'm a self employed freelance web designer and have two clients that are refusing to pay for their websites which I have designed and created. They want the websites but are messing me about with payments which were due September last year. I have sent the three warning letters with not much success.
I just want to ask if anyone has any experience with taking something like this to the small claims court? Is it worth it to get my money as I am owed over £4000 in total. I do not have contracts in place but do have email correspondance saying they want and are happy with the websites etc
Suzanne

Small claims courts are ideal for resolving such disputes where the value of the claim is up to £10k (the limit recently was increased to this level - different values may apply outside of England)

The court will try to establish if (a) a valid contract was ever formed and if so (b) if the other side are now in breach of that contract.

For this reason, it's always best to get contracts agreed in writing before commencement of any expense. But a contract does not need to be in writing for one to legally be formed.

A contract in it's simplest form is a where party A agree to supply something and Party B agree to take that product or service and recompense Party A for that supply at an agreed rate and time.

There appears little doubt that you offered to supply something, and that the other side are happy with what you supplied. However, the question you will need to prove is that the other side agreed to pay you by now the amount you are now demanding.

Also be aware, that even if you succeed in gaining judgement in your favour, that will not necessarily mean you will ever get paid. You can't get blood out of a stone, so make sure the other paty are in a position to pay you if it is proven they owe you the money. Otherwise it'll be a case of good money after bad.

suzyleusby

Thanks for the reply Wywth.
This taught me a valuable lesson and I do now have contracts in place for future clients. One client I know is in a position to pay and is just using delay tactics and the other client is in financial difficulty but is still trading and had agreed to pay me off monthly which I was happy to do but I still haven't received any payments and he is no longer replying to any communication. I just can't decide if it is worth going through the small claims court as I really need the money but can't afford to waste any more.

Mistral001

Good advice from Wyth there.

I have taken people through the Small Claims Courts for non-payment with a fairly good results, but they do not always pay up as Wyth has said. But at least it is a learning experience.

Persistance is the best policy. Phonecalls, I find are the best way. One a month. Be polite and do not take it personally or lose your temper, but make sure they get the message that you will not give up. Also make sure you talk to the person in the firm who employed you and not just the accounts department.

COOLTRIKERCHICK

AS you designed the website etc, and they have not paid up, could you put some sort of 'block' on the website? so they can not access it, or put it into 'sleep' mode, or currently under construction, so no one can view/enter the website?

Lagoon

Another point worth mentioning is that often the threat of small claims is enough to force people to pay if they know that they owe the money. Send a formal letter, recorded, in the mail, with a statement of your intention to take them to small claims court if you don't receive payment by (specific date).

Usually people will panic at that stage, and pay what they owe without the need to take it further. Otherwise, it's time to act on what you've said.

InsideInsurance

Lagoon wrote: »

Usually people will panic at that stage, and pay what they owe without the need to take it further.

"Usually" is probably a bit strong, there are some that will cough up if you threaten to get a County Court Judgement against them but others are well too aware that many who threaten this never follow through.

Some have previously suggested sending a copy of the claim form through with the letter to show you are serious but I dont know if this makes them take you more seriously or not.

You do need to make sure you arent wasting your money though getting judgement if they are going to be unable to afford paying it or are the types that will wind up their company etc to avoid the debt.

Mistral001

I agree with Inside Insurance. It is not my experience that written threats of court action work at all never mind "usually" as Lagoon put it.. It is only when they get the summons that most do anythings about it.

Acc72

Are you still able to access the websites ?

If so, can you "take them down" ?

suzyleusby

I was advised not to take them down as they are e-commerce websites and if I take them to court they could try and get money off me too for loss of business.

COOLTRIKERCHICK

suzyleusby wrote: »

I was advised not to take them down as they are e-commerce websites and if I take them to court they could try and get money off me too for loss of business.

Then this is your key point when you send then a final deman letter.

That if payment is not made by x date then you will put a block on the website, until payment is made.

I am sure this will get their butts twitching..