Pursuing overdue invoice from EU customer

PilotJames

Hello

I have a customer based in the EU (with parent company in the US) who has not paid their invoice which is now 8 month overdue.

Reminders are now being ignored or told to contact the parent company in the US who are also ignoring any correspondence.

The sum outstanding is relatively modest at £1500. The question is whether there is any viable way to pursue (or at least start) some kind of legal proceedings to recover some of the amount. Or is any legal action likely to immediately wipe out the amount owed?

DullGreyGuy

PilotJames said:

Hello

I have a customer based in the EU (with parent company in the US) who has not paid their invoice which is now 8 month overdue.

Reminders are now being ignored or told to contact the parent company in the US who are also ignoring any correspondence.

The sum outstanding is relatively modest at £1500. The question is whether there is any viable way to pursue (or at least start) some kind of legal proceedings to recover some of the amount. Or is any legal action likely to immediately wipe out the amount owed?

Which legal jurisdiction covers the contract?

Bookworm105

never lose sight of the reality that winning in court is not the same as enforcing the judgement by actually getting hands on the money owed.

Hoenir

From a broader business perspective I'd be pursuing debts much quicker and have a debt collection agency on hand to enforce same. As cross border activity can be notoriously challenging. With some countries far worse than others. 

What do have to hand to in terms of documentary evidence to support a legal claim in an overseas court? 

PilotJames

DullGreyGuy said:

PilotJames said:

Hello

I have a customer based in the EU (with parent company in the US) who has not paid their invoice which is now 8 month overdue.

Reminders are now being ignored or told to contact the parent company in the US who are also ignoring any correspondence.

The sum outstanding is relatively modest at £1500. The question is whether there is any viable way to pursue (or at least start) some kind of legal proceedings to recover some of the amount. Or is any legal action likely to immediately wipe out the amount owed?

Which legal jurisdiction covers the contract?

England & Wales.

PilotJames

DullGreyGuy said:

PilotJames said:

Hello

I have a customer based in the EU (with parent company in the US) who has not paid their invoice which is now 8 month overdue.

Reminders are now being ignored or told to contact the parent company in the US who are also ignoring any correspondence.

The sum outstanding is relatively modest at £1500. The question is whether there is any viable way to pursue (or at least start) some kind of legal proceedings to recover some of the amount. Or is any legal action likely to immediately wipe out the amount owed?

Which legal jurisdiction covers the contract?

The work done (which is a physical document), email correspondence relating to the work done and the invoice itself.  

DullGreyGuy

PilotJames said:

DullGreyGuy said:

PilotJames said:

Hello

I have a customer based in the EU (with parent company in the US) who has not paid their invoice which is now 8 month overdue.

Reminders are now being ignored or told to contact the parent company in the US who are also ignoring any correspondence.

The sum outstanding is relatively modest at £1500. The question is whether there is any viable way to pursue (or at least start) some kind of legal proceedings to recover some of the amount. Or is any legal action likely to immediately wipe out the amount owed?

Which legal jurisdiction covers the contract?

England & Wales.

Then you would need to issue in the England or Wales, as the defendant is overseas you'd need to do so using the paper forms rather than the online tools. You may need to have translations done but in general if it's clear English courts have jurisdiction then the judgement is enforceable in the EU. As has already been pointed out though, getting the judgement is only the first step, if they have no assets in the UK to go after then you are looking at recovering overseas which is both more expensive and time-consuming with no guarantee of success. 

PilotJames

DullGreyGuy said:

PilotJames said:

DullGreyGuy said:

PilotJames said:

Hello

I have a customer based in the EU (with parent company in the US) who has not paid their invoice which is now 8 month overdue.

Reminders are now being ignored or told to contact the parent company in the US who are also ignoring any correspondence.

The sum outstanding is relatively modest at £1500. The question is whether there is any viable way to pursue (or at least start) some kind of legal proceedings to recover some of the amount. Or is any legal action likely to immediately wipe out the amount owed?

Which legal jurisdiction covers the contract?

England & Wales.

Then you would need to issue in the England or Wales, as the defendant is overseas you'd need to do so using the paper forms rather than the online tools. You may need to have translations done but in general if it's clear English courts have jurisdiction then the judgement is enforceable in the EU. As has already been pointed out though, getting the judgement is only the first step, if they have no assets in the UK to go after then you are looking at recovering overseas which is both more expensive and time-consuming with no guarantee of success. 

As in Form N1, i.e. small claims process?
If an asset were to appear in the UK, could it be seized?

lincroft1710

PilotJames said:

DullGreyGuy said:

PilotJames said:

DullGreyGuy said:

PilotJames said:

Hello

I have a customer based in the EU (with parent company in the US) who has not paid their invoice which is now 8 month overdue.

Reminders are now being ignored or told to contact the parent company in the US who are also ignoring any correspondence.

The sum outstanding is relatively modest at £1500. The question is whether there is any viable way to pursue (or at least start) some kind of legal proceedings to recover some of the amount. Or is any legal action likely to immediately wipe out the amount owed?

Which legal jurisdiction covers the contract?

England & Wales.

Then you would need to issue in the England or Wales, as the defendant is overseas you'd need to do so using the paper forms rather than the online tools. You may need to have translations done but in general if it's clear English courts have jurisdiction then the judgement is enforceable in the EU. As has already been pointed out though, getting the judgement is only the first step, if they have no assets in the UK to go after then you are looking at recovering overseas which is both more expensive and time-consuming with no guarantee of success. 

If an asset were to appear in the UK, could it be seized?

Are you expecting an asset to appear in the UK?


Court appointed bailiffs do have the power to seize assets where a judgement has not been paid, but there are limitations and conditions. 

PilotJames

lincroft1710 said:

PilotJames said:

DullGreyGuy said:

PilotJames said:

DullGreyGuy said:

PilotJames said:

Hello

I have a customer based in the EU (with parent company in the US) who has not paid their invoice which is now 8 month overdue.

Reminders are now being ignored or told to contact the parent company in the US who are also ignoring any correspondence.

The sum outstanding is relatively modest at £1500. The question is whether there is any viable way to pursue (or at least start) some kind of legal proceedings to recover some of the amount. Or is any legal action likely to immediately wipe out the amount owed?

Which legal jurisdiction covers the contract?

England & Wales.

Then you would need to issue in the England or Wales, as the defendant is overseas you'd need to do so using the paper forms rather than the online tools. You may need to have translations done but in general if it's clear English courts have jurisdiction then the judgement is enforceable in the EU. As has already been pointed out though, getting the judgement is only the first step, if they have no assets in the UK to go after then you are looking at recovering overseas which is both more expensive and time-consuming with no guarantee of success. 

If an asset were to appear in the UK, could it be seized?

Are you expecting an asset to appear in the UK?


Court appointed bailiffs do have the power to seize assets where a judgement has not been paid, but there are limitations and conditions. 

From time to time an asset may well appear in the UK. They don't need to seize it but a court order could potentially stop it leaving the UK until the judgement has been paid?

DullGreyGuy

PilotJames said:

DullGreyGuy said:

PilotJames said:

DullGreyGuy said:

PilotJames said:

Hello

I have a customer based in the EU (with parent company in the US) who has not paid their invoice which is now 8 month overdue.

Reminders are now being ignored or told to contact the parent company in the US who are also ignoring any correspondence.

The sum outstanding is relatively modest at £1500. The question is whether there is any viable way to pursue (or at least start) some kind of legal proceedings to recover some of the amount. Or is any legal action likely to immediately wipe out the amount owed?

Which legal jurisdiction covers the contract?

England & Wales.

Then you would need to issue in the England or Wales, as the defendant is overseas you'd need to do so using the paper forms rather than the online tools. You may need to have translations done but in general if it's clear English courts have jurisdiction then the judgement is enforceable in the EU. As has already been pointed out though, getting the judgement is only the first step, if they have no assets in the UK to go after then you are looking at recovering overseas which is both more expensive and time-consuming with no guarantee of success. 

As in Form N1, i.e. small claims process?
If an asset were to appear in the UK, could it be seized?

N1 is simply a claim, the directions process decides if its small track, fast track etc