Client disputing a part-paid invoice

[ChasingPayment]

Longtime lurker; first time poster!

I am a self-employed events supplier. I worked for a client over 3 years 2016-19. I knew from the start the client was somewhat unreliable with a string of dissolved companies, and as a result ensured I was paid in cash on site when work was completed to make sure I wasn't out-of-pocket (everything declared and receipts provided!) However in 2019 this wasn't possible. I reached out after work was completed by email stating what I was owed, and the client accepted this.

I received a partial payment, and followed this up with an invoice detailing what was still owed (with standard 30 day payment terms/statutory interest) in Jan 2020. I made this invoice out to the client personally, as we had not agreed (verbally or in writing) that I was contracted by any LTD company. By this point I had no idea which LTD/s were still trading anyway. I received another partial payment - but no contact - approx 6 weeks after I sent the invoice.

I recently sent an updated invoice including accrued interest, and received a reply saying I have the wrong details on the invoice because the client did not contract me personally, and the related company has now been dissolved anyway, so I will not be paid. They are not disputing that the work was carried out, or that I am owed money.

Could partial payment on the Jan 2020 invoice constitute acceptance of the terms in this situation? Did I actually have a leg to stand on in invoicing personally, given there was no agreement with a LTD company? I would consider going to small claims if so, as the interest alone would cover costs.

Obviously this is exactly why contracts are so useful, and I have not made this mistake since!

Any thoughts would be much appreciated.

 

[antropy]

I made this invoice out to the client personally, as we had not agreed (verbally or in writing) that I was contracted by any LTD company.

Without proof it will be hard to get the money from a small claims court. With 3 dissolved companies, the person sounds like he would be able to duck the payment and find some kind of a loophole to not pay you. Good luck but I think it will be an uphill battle to get your money back. Alex

 

[Frank the Insurance guy]

Were you paid the part payment by cheque or bank transfer to your account (I note all payments before then were cash).

If you have evidence that the cheque or bank transfer was from a personal account, this may add some legal weight as to the contract being with them personally?

 

[eteb3]

I'm absolutely no expert, but what I've read would suggest that part-payment is acknowledgement of the debt, and as the invoice was made out to him personally, it's his personal debt.

Do you have a copy of the receipt you gave and does the receipt also name him personally?

 

[Big G]

We are instructed on situations like this almost daily and I shared a video on my linked in just last week regarding this very issue. The link to this is below but wont really help you now:

https://www.linkedin.com/posts/nick...ebtrecovery-activity-6757989916921085952-K_fQ

So, from what you have said alone, I think that there is a good prospect of successfully proving that you contracting with the individual and not a limited company as you invoiced the individual and received payments. I am guessing that you did not receive any query to the invoice being addressed to the individual?

What you will also need to look at is any written correspondence between you. Was all of their correspondence to you regarding your work addressed from a limited company or from the individual?

Lastly, I know another member asked above but, how were the payments made? If it was cheque or bank transfer from the individual then this may help.