Unpaid invoice for work done

pavsid

Hi, I've been trying to get in contact with citizen's advice but their lines are always busy! Will try going into the office this week, but was curious if anyone could offer any advice.

I did some work for a client, who after not paying is now saying that the work was done for a LTD company and so the invoice should be made to them. I know what they're doing - the LTD company is dormant, and they'll claim it has no money to pay, and then dissolve the company.

My fault i know, not having a contract in the first place, but i've since discovered that this person has a history of not paying people, and I not going to let them get away with it.

I've submitted a small claims court, and have a mediation call next week, but I'd like to know where I stand legally.

Although there is no contract, there is a long list of email correspondence, and it was never suggested that this work was for a LTD company, until late on in the project when all the work was done. This is their only defence, but with the email trail I can prove that the work was done before they ever suggested the work was for a LTD company.

Can anyone help? Do I have a case, or is this a non-starter?

Thanks in advance.

Mistral001

pavsid wrote: »

Hi, I've been trying to get in contact with citizen's advice but their lines are always busy! Will try going into the office this week, but was curious if anyone could offer any advice.

I did some work for a client, who after not paying is now saying that the work was done for a LTD company and so the invoice should be made to them. I know what they're doing - the LTD company is dormant, and they'll claim it has no money to pay, and then dissolve the company.

My fault i know, not having a contract in the first place, but i've since discovered that this person has a history of not paying people, and I not going to let them get away with it.

I've submitted a small claims court, and have a mediation call next week, but I'd like to know where I stand legally.

Although there is no contract, there is a long list of email correspondence, and it was never suggested that this work was for a LTD company, until late on in the project when all the work was done. This is their only defence, but with the email trail I can prove that the work was done before they ever suggested the work was for a LTD company.

Can anyone help? Do I have a case, or is this a non-starter?

Thanks in advance.

Firstly, you do have a contract. You offered to do work for a price and that offer was accepted. That is a contract. Even if it was just agreed verbally, it is still a contract.


Forget what that this person has a history of not paying. Treating him differently from someone who has a history of being a good payer, is unbusinesslike. Are you suggesting that you should have two types of contracts: one for good payers and one for people who "have a history of not paying".


With regard to the person requesting that they make it out to their Ltd company, did you know that the person you were dealing with was representing a Ltd Company? You perhaps need to look at what was on emails and correspondence they sent you. Professional advice other than that from Citizens Advice (I am not sure the give advice to businesses anyway) perhaps is needed before proceeding.

Atidi

pavsid wrote: »

Hi, I've been trying to get in contact with citizen's advice but their lines are always busy! Will try going into the office this week, but was curious if anyone could offer any advice.

I did some work for a client, who after not paying is now saying that the work was done for a LTD company and so the invoice should be made to them. I know what they're doing - the LTD company is dormant, and they'll claim it has no money to pay, and then dissolve the company.

My fault i know, not having a contract in the first place, but i've since discovered that this person has a history of not paying people, and I not going to let them get away with it.

I've submitted a small claims court, and have a mediation call next week, but I'd like to know where I stand legally.

Although there is no contract, there is a long list of email correspondence, and it was never suggested that this work was for a LTD company, until late on in the project when all the work was done. This is their only defence, but with the email trail I can prove that the work was done before they ever suggested the work was for a LTD company.

Can anyone help? Do I have a case, or is this a non-starter?

Thanks in advance.

How much credit have you extended?
What does the contract say as to who is involved?

You claim there is no contract (not sure about that, contracts don't have to be in writing, but best they are for instances just like this) but if there really is no contract, you are owed nothing.

You don't need the CAB, you need independent legal advice.

You'd would have been best off getting this before extending credit, but better late than never as the saying goes

Bit late asking if your claim is a non-starter; you've already started it!

pavsid

Mistral001 wrote: »

Firstly, you do have a contract. You offered to do work for price and that offer was accepted. That is a contract. Even if it was just agreed verbally, it is still a contract.


Forget what that this person has a history of not paying. Treating him differently from someone who has a history of being a good payer, is unbusinesslike. Are you suggesting that you should have two types of contracts: one for good payers and one for people who "have a history of not paying".


With regard to the person requesting that they make it out to their Ltd company. Did you know that you were dealing with a Ltd Company when you made your offer? Did you know that the person you were dealing with was representing a Ltd Company? Professional advice other than that from Citizens Advice (I am not sure the give advice to businesses anyway) perhaps is needed before proceeding.

Hi, thanks for your reply. Ok so we do have a contract - that's a start!

I never knew, nor was it suggested, that this work was for a LTD company, nor did the person say that they were representing a LTD company. Their emails come from a Yahoo address, and the signature has never been more than their name.

That's good to know CA don't give advice to businesses, saves a wasted journey!

I've contacted a couple of local solicitors who offer free 30 minute advice, so fingers crossed i will get what I need from that.

pavsid

Atidi wrote: »

How much credit have you extended?
What does the contract say as to who is involved?

You claim there is no contract (not sure about that, contracts don't have to be in writing, but best they are for instances just like this) but if there really is no contract, you are owed nothing.

You don't need the CAB, you need independent legal advice.

You'd would have been best off getting this before extending credit, but better late than never as the saying goes

Bit late asking if your claim is a non-starter; you've already started it!

Hi, thanks for your reply. Amount owed is just less than £500, but that to me is a lot of money!

I guess we do have a contract, as there is a massive email trail But I guess the point is how to prove the work was done for him personally, rather than his "company".

The only mention of his company (which he wanted adding to the footer of the website I built him) was once the work was largely completed and sent to him for testing.

Atidi

pavsid wrote: »

Hi, thanks for your reply. Amount owed is just less than £500, but that to me is a lot of money!

I guess we do have a contract, as there is a massive email trail But I guess the point is how to prove the work was done for him personally, rather than his "company".

The only mention of his company (which he wanted adding to the footer of the website I built him) was once the work was largely completed and sent to him for testing.

Refer to the contract then

If you still can't sort it out, then the judge will.


(You presumably don't care who pays you the £500 and I presume this guy is the director of the limited compnay he's asking you to now bill.
If I were you, before causing all this upset I would have just billed the company as well, and see where that led you.
He can't just dissolve a company - you as a creditor could object. And if the company really has never traded and has no money, perhaps you could do him for wrongful trading too - again, as I said, you really should have sought independent legal advice before it got anywhere close to this stage, but better late than never

I am not a lawyer)

pavsid

Atidi wrote: »

Refer to the contract then

If you still can't sort it out, then the judge will.

Yes of course, but to take it to a court hearing is approx £150, so I'd like to know if I have a strong enough case or not first That's why i'm asking on here to see if anyone has any experience in the field.

Atidi

pavsid wrote: »

Yes of course, but to take it to a court hearing is approx £150, so I'd like to know if I have a strong enough case or not first That's why i'm asking on here to see if anyone has any experience in the field.

I suggest you seek independent legal advice.

The internet is not the place to obtain this.

Where did you get the £150 figure from? :huh:

You'd have already paid about £35-£70 to file the claim.
The hearing should only cost another £55-£80 if you decide that is what you want.

pavsid

Atidi wrote: »

I suggest you seek independent legal advice.

The internet is not the place to obtain this.

Where did you get the £150 figure from? :huh:

You'd have already paid about £35-£70 to file the claim.
The hearing should only cost another £55-£80 if you decide that is what you want.

Not sure where the £150 came from, thought I saw this figure somewhere, but yes I can see the court fee is indeed £55. Also read that it may be settled with written evidence rather than having to actually appear in court.

Thanks for your help & advice btw. How would you recommend I approach the mediation call? Should I stand my ground or accept lower for a settlement out of court?

Atidi

pavsid wrote: »

Not sure where the £150 came from, thought I saw this figure somewhere, but yes I can see the court fee is indeed £55. Also read that it may be settled with written evidence rather than having to actually appear in court.

Thanks for your help & advice btw. How would you recommend I approach the mediation call? Should I stand my ground or accept lower for a settlement out of court?

If the court has recommended mediation, it ain't going to be settled by the judge based on the written evidence, without a hearing

Do you think taking a stubborn approach (standing your ground) is the right approach to enter into mediation?

Be aware, the judge will almost certainly receive a report from the mediation service, whatever the outcome.

Whatever the outcome of mediation, unless both parties accept the outcome (if there is one) , you can still take the matter to court if you think that is the right thing to do.

Hopefully with the independent legal advice you would have already sought, you'll be in a position to make the appropriate decison.

Vectis

Mistral001 wrote: »

....Treating him differently from someone who has a history of being a good payer, is unbusinesslike. Are you suggesting that you should have two types of contracts: one for good payers and one for people who "have a history of not paying"....

Er, yes, that's exactly what the OP should be doing. It's what any company with a good grip on it's finances would do.

If a client has a bad payment history, why on earth would you extend credit to them? That would be madness.

In our business we ask for payment up front for all new clients and for those who haven't previously kept to our payment terms. Are you seriously suggesting it's 'unbusinesslike' to do that?!