Small Claims Court

catkins

OH issued a claim in the small claims court for money owed by a company he subcontracted to. They owed him £4,500 but disputed some of the invoices. Basically they said they owed £3,400 and disputed the other £1,100.


They dragged their heels over the payment (they were always bad at paying in the 7 months OH worked for them) so after sending emails and speaking on the phone with no success we sent a letter before action.


This had the effect of enraging them so they said they were not going to pay anything and we could take them to court and let a judge decide what should be paid?


Well the hearing is set for 8th October and by then the interest on the money owed will be over £200 plus £410 we have had to pay for the matter to go to court. All this is payable if we win.


I am now thinking that they must realise this and that the court costs and interest are higher than they would be if we were only chasing the disputed amount. This makes me think that they probably have no intention of ever paying a penny.


Surely no judge in their right mind would not award us at least the undisputed amount plus court costs and any interest?


If we win and they decide not to pay is there anything we can do that will not cost the earth?


Things are not great for us financially at present and I feel they are going to completely ignore any orders made by the court

Marktheshark

Just make very sure you have issued against the right entity as listed on companies house website.
Seen many list "trading names" and come very unstuck.

wealdroam

Catkins, have you read MSE's Small Claims Court guide?

skintpaul

sue for whatever is outstanding- whether debtor has 'agreed' figures, or otherwise.

Can later accept part payments, towards total o/s - add interest and costs!

catkins

Marktheshark wrote: »

Just make very sure you have issued against the right entity as listed on companies house website.
Seen many list "trading names" and come very unstuck.

Yes we checked the name with Companies House.

wealdroam wrote: »

Catkins, have you read MSE's Small Claims Court guide?

Yes, I know we have several avenues we can use if they don't pay up but even if Bailiffs (which I believe can be expensive) just how likely are they to get money from them?


I just can't help feeling they will not pay anything.

TonyMMM

catkins wrote: »

Yes, I know we have several avenues we can use if they don't pay up but even if Bailiffs (which I believe can be expensive) just how likely are they to get money from them?

Getting a judgement is the easy bit - no guarantee you will see any money.

Probably depends a lot on how established a company they are and whether if they care that your judgement is going to do them any harm, or just be one of many. They could wind up the company and reopen under another name ......all sorts of things people will try.

InsideInsurance

catkins wrote: »

Yes, I know we have several avenues we can use if they don't pay up but even if Bailiffs (which I believe can be expensive) just how likely are they to get money from them?


I just can't help feeling they will not pay anything.

Well you can get a high court writ and an enforcement officer will attempt to obtain the monies or goods to the value of and if the company has commercial premises then they can force entry to do so etc.

As you fear though, if they simply dont have money or assets to cover the debt then its all good money after bad. Have you checked their company accounts or a company credit checking service? Are you aware of any assets they definitely own (and arent hire purchase details/ mortgaged to the hilt etc)?

bris

Just sue for the whole amount including costs, produce all your evidence and the judge will decide what your due.

InsideInsurance

bris wrote: »

Just sue for the whole amount including costs, produce all your evidence and the judge will decide what your due.

And if the defendant has no means to pay then you've just added circa £275 to the OP's losses even if they win and thats before enforcement costs are added

Marktheshark

Depends how solvent the firm is, if they are a big well heeled firm, serving a statutory demand usually gets their attention very quickly indeed.
They get 14 days to pay or you can pay £750 which you get back and have the firm made bankrupt with you as preferential creditor after wages and tax.

catkins

Thanks for the replies.


The company is not that big. They have been going for over 25 years but have had quite a few unhappy customers. We know for a fact that they lied to several customers and they lied like crazy to OH. Even their defence is full of lies. So no chance of them doing the honest honourable thing!


I wondered when OH was working for them if they had money problems because they weren't great with paying although they usually eventually paid up. When you look at what they charge the customer though compared with what they are paying their subcontractors, they should have plenty of money.


We've got this far so are not going to back down now and, if need be, will take further steps if we are awarded an amount and they don't pay. Just have a feeling though that they will do everything they can to not pay a penny.