Chasing Unpaid Invoice from US Client

TezzaFulham

Hi everyone,
I am seeking some information and guidance regarding chasing unpaid invoices for work delivered by my UK Limited company to a US-based investment fund.
I work in the consultancy space and have a contract with the client, which states very clearly that all invoices are to be settled within 28 days. I also have the ability to add 8% interest for each month late (which I've not sought). I have sent numerous gentle reminders and requests for dates that I can expect payment but nothing back. I call and get told they're looking at it but the ultimate boss of the firm hides and I can only get through to those who agree with me and say they'll speak to him but I go around in circles and hear nothing. It's now been 3 months since invoices were issued, so a full 2 months late, with no date or promise for payment in sight. 
I have been told it's difficult and expensive to chase money from the US but I cannot afford to let this go. It was a lot of work delivered, in excess of £10k. 
Any advice or pointers would be greatly appreciated. 
Thank you.

Sandtree

Which governing law applies to your contract with them?

The obvious issue is that whilst you can go through the english legal system if the contract was written under the English legal jurisdiction your ability to enforce the debt becomes harder due to them being outside of the UK (and even more as they are outside of the EU).  The second problem is that is if it is above £10k then you are above Small Track limits (aka small claims court) and into Fast Track where costs step up and legal fees become a consideration... less so if you win naturally.

There are firms that will work on a no-win, no fee basis but you would be looking to sacrifice up to 30% of the monies due if they do make a recovery. You may find that formal court documents are sufficient to get the cheque book open though.

TezzaFulham

Hi,
The governing law mentioned in the contract is that of England. It is the same contract as per my UK clients, with the exception of them paying in USD and not GBP.
The amount is actually just under £10k with today's exchange rate (which obviously fluctuates - and would have been far more favourable if paid when issued!) 
I will look in to the small claims court/fast track option. I do not want to get into a lengthy and expensive battle with them. Their pockets are far deeper than mine, so even though I have hard evidence that work was delivered (which they aren't actually disagreeing with), I can't foot bills to then be reimbursed if I was to win a court case.
I think you are right - if they get a formal document (which I'm assuming is easy and relatively cheap to obtain), they'd just pay up.
Thank you for your help!

Mistral001

Disregarding  the fact that the contract  is with a US company and concentrating on the time the bill is outstanding, being late 2 months is not uncommon in my 23 years of being in a consultancy business, so I would not go to Law just yet. 

The key to getting paid is to being persistent  and speaking to the person that matters.  That will be the person who hired you in the first place, who will usually be the CEO or someone very senior.  Do not be fobbed off with being put through to accounts or some other department. 

Some ingenuity might be required to get through to the right person.  In one case of late payment, I made repeated attempts to contact the senior partner of a firm who owed me money, but he was always busy or not in according to his personal assistant.  I am no actor or impressionist, but when money is involved, it is wonderful what I can be forced to do, So after about four of five months of not being able to get speaking to the senior partner, I rang determined to get through to the boss. This time I  spoke in a completely different accent to my own when the personal assistant answered.  I was put through to the senior partner immediately.  The  senior partner seemed pleasant and unaware that I had not been paid.  I got a cheque from him in a few days.

TezzaFulham

Thank you. I truly appreciate it! 

martindow

I agree that constant phoning can work and I have had luck with finance departments (I don't think my impersonation skills are up to Mistral's.  I've phoned, noting the name of who I was calling and getting them to give a date when the payment will be made.  Then follow that up a day or two later to confirm the payment is about to be made and again if they miss the date.  I found that they get worn down and eventually make sure that the invoice is put through.

I would hold off opening a legal claim until I had exhaused other means as I think that all contact would be cut off at that point.  Any attempt to call would divert to a legal department who would refuse to discuss anything.

Sandtree

Certainly agree that pre-litigation should be exhausted before filing. 

The "advantage" of the small claims court is that legal costs are almost totally unclaimable and even if permission is given it is only a token vale. So yes  they can lawyer up etc however that all would be at their own expense even if they won the case somehow. The fast track does allow limited legal costs to be added and so somewhat increases the risk.

martindow

The problem is that 'winning' at court does not automatically get you the money.  When the claim is against someone abroad the difficulties of enforcing it could be impossibly expensive.  I wonder whether a British judgement would be recognised at all in the USA.