Letter Before Action

[averil sinnott]

I have a similar query to another member who has posted on here.
I am a freelance designer and have done a lot of work for a client who I initially drew up a brief and costing for. She then asked me to do a lot of extra work and just asked me to keep a log of my hours.

At the end of it the hours were quite considerable - she changed her mind on things and also asked me to print source and manager the projects.
When I gave her my bill I suggested we work on a day rate as opposed to an hour rate as it would be more economical. I more than halved the bill for her from £7200 to £3500. I also suggested I give her a break down of where the time was spent. Initially she said it was ok not to and thanked me for all the work and asked for all the docs to be handed over. I did this and then invoiced.

She then said she was unhappy to pay the bill as it was more than she'd expected. Again I gave her a break down - showing where I'd not charged her for certain work. We spoke on the phone and she wanted me to reduce one part of the bill. Said she was happy with the rest of the bill and no problem - (her beef was that I didnt keep her up to date with the hours I'd done). Instead of further discounts I offered her a discount on future work instead and gave a break down where the time had been spent. She then started to contest the rest of the bill and her last correspondence said she wanted to only pay £2000 rather than £3500. She's already used a lot of the art work I supplied. - esp on social media to promote her new company.

I have emailed her a letter before action over a month ago and have not heard back.

I then sent her an email 4 days ago saying I would start court action.
My query is whether I legally need to issue the letter of action as a letter or will an email be enough? Also, a county court claim the right mode of action. Again,Im reticent to use a solicitor as it's a significant amount of money for me but solicitors could be an additional cost which may not be necessary...

 

[Deleted member 59730]

Use MoneyClaimOnline. There is lots of info on their site. My rule is to never use email or phone calls when sueing someone. You want it all on paper.

You 1st need to send a Letter Before Action. Than 14 days later you send the actual Court papers with your letter of action which could be just another copy of the 1st letter.

Good luck.

 

[averil sinnott]

Ah yes, thanks. I thought this might be the case..
I stupidly sent this over a month ago so keen to get it resolved but prob prudent to send again in letter and wait the extra 14 days.
Just dont want to leave longer and risk by her wangling out of it by closing business. She hasnt started trading yet so fear she might wind up business as its now called a new trading name..

 

[Dean Logan FCA]

You worry about her changing name or closing down?

Was she a sole trader or limited company. If a sole trader none of this matters.

If she was starting a limited company did she approach you as the company or personally.

I am not a solicitor but it is important you get the facts and debtor details correct. Email me if you prefer.

 

[The Byre]

Technically, an email will do. A letter is better, but if you have already established contact via email, that is now your means of communication and by sending an email, you have fulfilled your duty to inform.

Right now, speed is of the essence! Too many of these claims fail or run into the sand/long-grass because the claimant shilly-shallied about, hoping against hope that somehow, magically payment would appear all by itself!

 

[averil sinnott]

I knew her as my mother from my son's school. She was having trouble with a web design company. Ironically, she wasnt paying the bill because she was unsure whether the work had been done. I looked at it for her. To be fair, they were over charging her and hadnt done everything but she was in contract so decided to pay as she was scared they'd try and close her down. So in theory she approached me as an individual but asked me to bill her through her Ltd company.

 

[smallclaimsassistance]

Right now, speed is of the essence! Too many of these claims fail or run into the sand/long-grass because the claimant shilly-shallied about, hoping against hope that somehow, magically payment would appear all by itself!

If you ignore all other advice, and if you want to recover your earnings, don't ignore this. In litigation, procrastination is the thief of success.

 

[Root 66 Woodshop]

Personally...
I'd tell her to pay up on the £2000 then stop all contact with her.

She's going to fail in business if she carries on like this - get what you can from her and walk away... Very quickly!

I mean, you've already halved her invoice... so I can only assume the cost is down to time rather than product...

Better to just walk away with £2000 rather than nothing.

 

[DontAsk]

Technically, an email will do. A letter is better, but if you have already established contact via email,

There has been no reply. I don't count that as establishing contact and would send a tracked and signed letter.

 

[averil sinnott]

Thanks DontAsk - I will yes, I think I will err on the side of caution and send a tracked and signed letter. She has moved from her old house however her business is still registered there so will have to send it there because I dont have her new address. I will also send an email which includes a delivery receipt.

 

[roydmoorian]

LBA is no use if it isn't followed up at the very first opportunity - It's not until you issue the summons that you discover a person's true colours....

 

[roydmoorian]

Recorded Delivery gets denied or refused, Tracked & Signed for needs to be "Addressee Only" which Royal Mail will not guarantee and needs to allow 28 days for POD so better sent in what appears to be a gift wrapped package by DHL or UPS etc.
The court will deem a certificate of posting with a return address to be evidence of receipt but once again the RM system will not give a definitive yes or no for up to 28 days.

 

[Ian J]

I knew her as my mother from my son's school.

<snip>

So in theory she approached me as an individual but asked me to bill her through her Ltd company.

She could well have approached you as a director of a limited company and if she asked you to bill her through a limited company before the work was done you have no chance of trying to claim otherwise

 

[The Byre]

I think I will err on the side of caution .

Just get on with it. Pull our finger out and get the process in motion! Your attitude is that of everybody I have ever come across who did not get their money,because they wasted time.

Any normal person would have had a lawyer write a letter (it costs just £6 BTW) and then immediately get the judicial ball rolling.

 

[averil sinnott]

Thanks The Byre. I rang two solicitors today and both said to send a letter by post to show receipt of delivery. I have looked into lawyer letter but then they would bill 10% on top. Which she will definitely contest and I'd have to wait 14 days. I wrote letter stating I'd sent letter of action and to respond in 5 days.

 

[Remford]

I've used a company called Thomas Higgins in the past (google them). They charge very little for a letter before action (recorded post etc) and you can go through all the motions on the back end of their website.

I have gone all the way through to debt collection with them and all from the comfort of my computer with very little stress and hassle!

 

[averil sinnott]

Thank you Remford. That's really good to know. I will look them up now.

 

[Charlie B ACS]

If you've sent the LBA by email, I would go straight to MCOL now. Have they replied to any email since you sent the LBA?

 

[Paul Kelly ICHYB]

Who cares what she contests!

she owes you the money and getting it back will cost money. You do not currently have a customer, you have a liability.

Claim, win/lose, move on.

 

[averil sinnott]

so I sent another LBA to her registered business address which is her old home and her current work (as she's setting up her business she's still working as a banker) I know she's moved but still her business is registered to old home and didnt want her lying and saying she didnt receive it.
I finally received a response from her via SMALL BUSINESS ADVICE NETWORK LIMITED.

The two letters attached were as follows,

Dear Sirs

Scorche B Brand Limited and Sxxxxxxxx

It has been brought to our notice that you addressed a letter to our client at her place of work and not to her normal address.

As you are aware of our client’s place of work you will also, we are sure, be aware that it is a bank and that banks have specific procedures for dealing with incoming mail.

The letter you sent was opened by other bank personnel and its contents have been reported to senior personnel within the bank. The letter contains allegations which are both inaccurate and yet to be proved.

It is our view that the letter was sent to the bank deliberately to embarrass our client.

The Defamation Act 2013 sets out the law relating to Defamation. In our view you have published a statement which was intended to cause serious harm to our client’s reputation. As the allegations you have made are inaccurate, at the very least, you cannot rely upon the statutory defence of “truth”. We do not believe that any of the other defences provided by the Act are available to you.

The purpose of this letter is to advise you that our client may suffer significant losses as a result of your action. She is a contractor and works under a very strict code of conduct. The losses our client will sustain, if her contract is terminated, could well exceed six figures and it may be difficult, if not impossible for her to obtain fresh contracts if a record of your letter is kept by the bank.

Our client will claim all the losses she sustains, as a result of your actions from both your company and from Averil Sinnott personally. We do not believe that Ms Sinnot can hide behind the company as the letter was a personal letter.

We advise you that, if you have insurance cover for this type of incident, you should inform your insurers immediately, pass them a copy of this letter and have them communicate direct with us.

We also require from you, by return of email, an unqualified undertaking that no further correspondence will be sent to our client at the bank. Should that undertaking not be received by close of business today, you will leave our client with no alternative but to arrange for injunction proceedings as soon as she can. She will be asking for an order for her legal costs.


This is a serious matter which you must not ignore. If you are not insured, we suggest that you get legal advice before replying.


Yours faithfully

Chris Hutchins Solicitor (retired) for Small Business Advice Network Limited


Dear Sirs

Scorche B Brand Limited and Sarah Morrissey

Dear Madam

We refer to your letter of 21 June which has crossed with ours of 23 June.

It is disappointing, indeed, that you should choose to write to our client at her place of work in a deliberate attempt to embarrass her. Your actions are both ill-advised and counterproductive. There are major inaccuracies in the information you have provided and, at least, some of the claims you are making are ill-founded.


You quote the Protocol but you do not seem prepared to follow it yourself. The idea of the Protocol is to promote a situation where matters can be resolved without the need for a Court hearing. To that end, we have asked that you provide a summary of your demands. What we have seen so far is not a summary, in any sense of the word, and we can make head nor tail of it.


Please set out in simple terms:

a. what work you have done.

b. the cost of that work.

c. why it did not comply with the cost estimate you provided

d. why you think it is appropriate to charge interest

e. any contract or other document upon which you rely

f. why you are making an offer of a future reduction for your services.


If we receive a proper and concise response to this request, we will be able to advise our client properly and fully and consider the request you are making. If your response is not clear, we will invite you to commence action in the County Court and pass this correspondence to the court, in the

hope that it can understand your claim and the reasons behind it. That action will be defended and this correspondence will be produced.


Our client is happy to look at ADR but we suggest that the first step that you take is that mentioned above, rather than waste time and money on a step which may not be necessary.

Please note that further correspondence must be conducted only through this firm at the address shown above. Should you choose to ignore this request and write direct to our client either at her home or work addresses, you will receive no further response.

We remain happy to follow the Protocol and suggest that, as your correspondence suggests, you do not fully understand it, you seek proper professional advice before responding to this letter.


Yours faithfully


Chris Hutchins Solicitor (retired) for Small Business Advice Network Limited

 

[averil sinnott]

As I mentioned, I sent it to her work because I knew her home address had changed and she may try to wangle out of saying she'd received it. The letter I sent to her house was indeed returned as not living at the address, which I think substantiates the need to contact her at work. I think she's now trying to intimidate me with the prospect of being sued for deformation of her character. I'm not intimidated and think it highlights her underhand behaviour. Any thoughts and suggestions welcomed.

 

[Paul Kelly ICHYB]

Why did you write to her work address? You have probably opened up a can you should not have been hitting!

I am not a solicitor but I believe that if you are telling the truth, you are not deforming anyone!

 

[averil sinnott]

Thank you Consultant. I wrote to her work because I knew she wasnt living at the address her company was registered to. She also gave me her work address when she asked for me to send her a sample of the booklet so she gave me permission to contact her at work.

 

[averil sinnott]

As the LBA came back as unopened and not at the address I would think it shows the only way to get her to respond has been through this route.

 

[Paul Kelly ICHYB]

Do you have her permission in writing?

BTW, as the LBA has come back from the legal address, start court proceedings...

 

[averil sinnott]

Ok, thanks for advice. I have a text message with her giving the address and an email trail discussing the sample being dropped to her work place too.

 

[The Byre]

You have succeeded in making a dog's breakfast out of an extremely simple matter. All you had to do was fulfil your duty to inform. If she fails to open her own mail, or fails to inform her creditors of a change of address, that is her look-out. At no time do you have to get any kind of response from her.

You do not have to be sure of having informed her, you merely have to fulfil your duty to inform. That would have been ONE letter to her registered address. Nothing else!

Technically, an email will do. A letter is better, but if you have already established contact via email, that is now your means of communication and by sending an email, you have fulfilled your duty to inform.

Right now, speed is of the essence! Too many of these claims fail or run into the sand/long-grass because the claimant shilly-shallied about, hoping against hope that somehow, magically payment would appear all by itself!

If you ignore all other advice, and if you want to recover your earnings, don't ignore this. In litigation, procrastination is the thief of success.

 

[The Byre]

Ok, thanks for advice. I have a text message with her giving the address and an email trail discussing the sample being dropped to her work place too.

In that case, you have established emails as the means of communication and an email is all you needed.

Now move immediately to step two -

as the LBA has come back from the legal address, start court proceedings...

 

[averil sinnott]

Ok. Will do.

 

[roydmoorian]

If the letter had been sent to "Addressee Only" as suggested in an earlier post then the letter should not have got into the "wrong hands". However a point of contact has now been established which can only be considered a good thing.

Sound as though there will be an element of "Fee Earning" in this argument, I hope it doesn't leave you further out of pocket !!

 

[Nico Albrecht]

start court proceedings right away against her and charge interest. I personally think she is trying to scare you. If she would be serious about it she wouldn't have used a free legal service from a retired legal person. I hope to marked the letter to her work address private and confidential if not I do believe the employer has the right to open it even with her name on it.

 

[Nico Albrecht]

I also think she might get disciplinary actions at work because she didn't tell her employer that she has a side business. Some work contracts specify that you have to tell your employer if you have a 2nd employment etc.... The employer now is aware of her side work / business and might impose disciplinary actions.