Ltd company owing £3k - the contract says my Ltd company can't take the Ltd to court

Poohspot

A well known Ltd company owes my company £3k.  I have been advised that the contract we signed says that we can't take the Ltd company to court and must seek address via arbitration.  We have been chasing this debt for 3 months and feel arbitration would be a waste of time.  Can we take this Ltd company to court via the small claims court.

Thrugelmir

Doesn't matter what you feel. Arbitration should be attempted first. 

bazzyb

Assuming you take them to court and it actually gets to a hearing, then court costs plus solicitors/counsel are going to cost a not insignificant sum when you are claiming a modest amount of £3k (assuming your limited company doesn't have in-house solicitors).  Arbitration definitely makes more sense.

Poohspot

Thank you both - very helpful.

cx6

Would the small claims court be an option - moneyclaimonline. Easy to do.

Oh and I don't think a 'cannot take us to court' term would be enforceable - anyone can take court proceedings.

Poohspot

Yes, that was my idea - to try the small claims court - as the fees are low and no need for any representations.

bazzyb

Poohspot said:

Yes, that was my idea - to try the small claims court - as the fees are low and no need for any representations.

I'm assuming from your original post that it would be your limited company making the claim rather than you as an individual.  If so, the limited company would require representation - the only people who have a right of audience in court are parties to the proceedings, their solicitors, or counsel briefed by a solicitor.

Sandtree

bazzyb said:

Poohspot said:

Yes, that was my idea - to try the small claims court - as the fees are low and no need for any representations.

I'm assuming from your original post that it would be your limited company making the claim rather than you as an individual.  If so, the limited company would require representation - the only people who have a right of audience in court are parties to the proceedings, their solicitors, or counsel briefed by a solicitor.

Or a duly authorised employee of the company can be given permission by the court but it is only in "exceptional circumstances" which unfortunately the Supreme Court failed to qualify; being unable to afford a solicitor or cost effectiveness of a solicitors fees in themselves are not considered sufficient grounds however.