Advice Needed - debt from overseas company

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L

laurah

Free Member
Jan 31, 2008
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  • #1
    I really hope someone can suggest a course of action for me!

    I am a freelance journalist (sole trader) and I have an outstanding invoice from a publishing company that is now around 9 months late! The invoice is for around £1200. The company ignored my many emails and phone calls throughout 2007 requesting payment and finally got in touch when I threatened legal action in November. They then suggested a payment date which has now passed and are complaining that their company is in dire financial straits.

    The company is based in Sweden. And herein lies my dilemma. If this were a a British company I would go straight to the Small Claims Court but I have had experience of trying to use this against a foreign-based company before ( a landlord based in the USA) and the Small Claims has no jurisdiction overseas.

    How can I get my money? Threats of legal action havent worked, I now need to act but, considering the relatively small sum, I'm unsure of the best course of action.

    I cant seem to find any reference to debt from overseas companies on any small business/freelance forums. I'd be so grateful for advice!!! Many Thanks, LH
     
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    Paul Kelly ICHYB

    Paul Kelly ICHYB

    Moderator
    • Jan 21, 2008
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  • #2
    difficult one this, I understand your position.

    You can find l a legal company in the UK with a Swedish angle - I am sure they are out there.

    You can contact a Swedish lawyer, in Sweden,.

    In am afraid both of these may have costs that exceed the returns!!!!

    In the first instance, contact the Swedish Embassy/Consulate and speak to their trade mission - maybe they can point you in a direction!
     
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    Jenni384

    Jenni384

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    • Oct 1, 2007
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  • #3
    I'd speak to a debt collection company. Some of these may deal with overseas debtors.
    I'm sure I've spoken to one or two before now who would be willing to chase an overseas debt.
    While I dislike debt collection agencies in general (sorry to any on the forum!) this is an occasion where I'd consider using them - and as long as you can find one who is no-collect-no-fee, you shouldn't end up out of pocket.

    Best of luck.
    Jenni
     
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    Cred-X

    Cred-X

    Free Member
    May 16, 2007
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  • #4
    Thanks for the vote of confidence Jenni :D

    Just kidding.

    Unfortunately Laurah you seem to be trying to close the door long after the horse has bolted. It seems that you started dealing with this company on trust. A bad mistake.
    We have to face facts here - The chances of recovering your debt are very low.

    Because of the value of the debt being £1,200 and over 9 months old you will be hard pressed to find a debt recovery agent who would take on an overseas insolvent company debt on a no win no fee basis. You will find that many of them offer no win no fee against companies or organisations that are clearly solvent and just bad payers.

    I would estimate that the costs of issuing a claim overseas would be far in excess of the debt and unfortunately I am not familiar with the Swedish legal system so I can't comment on the recovery of costs from the debtor or of how you would be able to enforce the judgment against the debtor.
    It's unfortunate but you may just have to bite the bullet and use this as a learning exercise. Overseas companies need to credit checked and controlled more so than UK companies simply because the distance involved make it so difficult to get them if things do turn bad.
     
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    boc

    Free Member
    Apr 29, 2008
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  • #5
    Go get yourself on a plane (with phrasebook in hand) a Ryan Air plane to keep cost down. Find a court in Stockholm (they will speak English) and try to file a claim. You could always rent an apartemnt for a weekend and use that address (give the owner a drink) but whatever, don't give up. I am about to do a similar thing with a large Grench organisation.

    last resort file an eqivalent of a Statutory Demand if they havent gone bust (that may just be a yarn they are spinning you) which is a winding up order.

    Whatever, do not write it off, and don't let anybody take the piss and at least get some satisfaction. go for them and GOOD LUCK (sorry for typos, it's late and way past my beditime.

    Bryan
     
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    A

    Anthony Reeves

  • #6
    It may be possible under Article 5 of the Jurisdiction and Judgments Regulation to issue proceedings in England & Wales depending on the place of performance of the obligation in question. I would need more information.
    If you would like to discuss it further, please feel free to contact me.
    Anthony Reeves (Legal Executive specialising in debt recovery)
     
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    C

    chris14

    Free Member
    May 28, 2008
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  • #7
    Sweden has a very efficient national debt collection service. All you need to do is supply proof of the debt and the steps you have taken to recover it and they will order the debtor to repay it. They have the powers to recover it if the debtors fails to comply.
     
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    cardsender

  • #9
    Hi

    I have just been through the same thing with a company registered in Gibraltar. I managed to take them to the small claims court and as you guessed they tried to get out of the debt, £6000, by claiming the court did not have jurisdiction.

    Unfortunately they were wrong. Because the contract was signed on my terms and conditions and in the UK, then the UK courts have jurisdiction. As a result the they lost their application for dismissal and I was given leave to apply for summary judgement.

    If my memory is right I believe that Sweden is in the EU, so Council Regulation No 44/2001 Article 5 may give the UK Court Jurisdiction if you did the work in the UK.

    However, that doesn't mean I have won. The company sold themselves to another company based in the USA, called by the same name, and wrote to the court saying they have no liability over the claim. Honestly, same name, same website, same operation and the same people behind it. I only found out today so am still stewing quietly. So I have fallen into the old trap of being owed money by a company that has then been sold to another company, which no doubt will be operated by exactly the same people.

    I do however have the satisfaction of knowing that I took them to court and won. I will now be writing to all their people to let them know the type of company that they are.
     
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    Edmund Broadley

    Free Member
    Dec 28, 2015
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  • #10
    So, how do I protect myself from this happening? I am wanting to sue a company that is based in the US, and I wouldn't want it to all be in vain if this were to happen!

    cardsender said:
    The company sold themselves to another company based in the USA, called by the same name, and wrote to the court saying they have no liability over the claim. Honestly, same name, same website, same operation and the same people behind it. I only found out today so am still stewing quietly. So I have fallen into the old trap of being owed money by a company that has then been sold to another company, which no doubt will be operated by exactly the same people.
    Click to expand...
     
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    ethical PR

    ethical PR

    Free Member
    • Apr 20, 2009
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  • #11
    The only way to protect yourself is to make sure you get payment in advance for services/products where your client is based abroad. You can also minimise risk by credit checking those you do business with.

    Whether the company is based in the UK or abroad, they can 'phoenix' their company to avoid their debts.
     
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    T

    The Byre

  • #12
    What many seem to forget, is that most jurisdictions have statutes of limitations of liability and some of these can be as short as six months and usually never longer than 30 years, after gaining title.

    The only way to deal with a jurisdiction that is not your own is to talk to a lawyer. In every country on Planet Earth, there are lawyers that specialise in dealing with claims of all sizes from foreign countries and they are all perfectly ready to talk on the phone. They are all easily found on the Interweb, but you do have to make your moves within the given timeframe. Writing to the other party is never enough, taking action always means to begin court proceedings.

    In other words, get a move on!
     
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    The Resolver

    The Resolver

    Business Member
    • Mar 31, 2006
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    themediationroom.leadpages.co
  • #13
    A suggestion but no more (before you commence pushing bundles of £50 notes down the court drainpipe) .....as you are a journalist I suggest you write a detailed blog article ,taking care to only state the facts of non-payment and not drift into defamation. Theme it as a warning to other journalists and the industry generally with lessons learnt for the future - then send to them for any comment before publication. As well as online meeting places for journalists, you should search for any trade association to which the company belongs (like the Publishers Association in the UK) and add them to the list of potential recipients. Also the Swedish government's department for business. Do not threaten to only send on payment (in case it is interpreted as blackmail) just ensure they understand your plans and say you are sending it to them in order to see if they wish to comment on the wording or to add a quote, but if there is any common sense left with these people it should initiate discussion on how they can clear their name with you.
     
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