Money owed by a soothing delayer

[BeautyScientist]

I've got a customer who is a very charming man and has built up a large network. He's the kind of guy who almost seems to run a business as a pretext for networking rather than the other way around. He's a real people person and must have contacts book that needs to be carried around on a wheelbarrow.

He's not as efficient when it comes to actually getting stuff done. I've developed a product for him that he has sold on to another company and I've arranged the manufacture and supplied him with the stock. Due to his light touch approach to actual work the whole process has taken about 3 years rather than the 6 months it should have done. I have no idea how he has managed to keep his customer on board, but it seems to still be live even though as of now he still has the stock and hasn't delivered it to them or been paid for it. He paid me a 50% deposit upfront with the rest payable on receipt. I delivered the goods to him the December before last.

I take the view, which I think folk on here will agree with, that I am entitled to payment now and that I have been more patient than I should have been waiting for him to get his ducks in a row. Current state of play is I have threatened legal action, but he's sweet talked me out of going ahead a couple of times. I've done the letter before action and I am planning on issueing a final warning tomorrow and pressing the button on the court website if he hasn't paid up by Wednesday. I'm just having a last minute think through. Is there any intermediate action I can take before actually going down the legal route? Despite everything I like him, and can imagine that he might be able to turn this project into a long term beneficial bit of business.

 

[ctrlbrk]

Is there any intermediate action I can take before actually going down the legal route?

Probably one for @The Resolver but it strikes me as something that could/should go through mediation.

 

[Ian J]

Probably one for @The Resolver but it strikes me as something that could/should go through mediation.

Surely there is nothing to mediate as the customer is just extracting the urine

 

[MBE2017]

Push the button.

Seriously, you have an account over a year old as a non payer and you think it’s time you got paid?

I truly think many on this forum must have inherited their fortunes rather than ever made them.

 

[Newchodge]

Despite everything I like him, and can imagine that he might be able to turn this project into a long term beneficial bit of business.

Have you considered professional help? This guy is a criminal. Get your legal claim in now.

 

[Mark T Jones]

Pretty much the above

Why are you making excuses for your debtor? That's his job - which he seems pretty good at.

Your job is to get paid

 

[WaveJumper]

Well I think as others have already indicated the action should have been 12 months ago. what does your contract or T&C's say about being paid

 

[BeautyScientist]

Well I think as others have already indicated the action should have been 12 months ago. what does your contract or T&C's say about being paid

The contract is unambiguous and nothing is disputed, so I simply need to file the papers. I'm just making sure there isn't an alternative way of going about it.

 

[Mark T Jones]

The contract is unambiguous and nothing is disputed, so I simply need to file the papers. I'm just making sure there isn't an alternative way of going about it.

I've yet to do an online claim - so suspect this might not be possible, but with 'old' paper claims it was often effective to email a copy of the claim giving them 3 days before submission.

Moving forwards, I'd says there are 3 fundamentals to stick to in any collections process

1. Know exactly what you want.
2. Tell them what you will do.
3. Do it.

 

[Bob Morgan]

I think that my 'Little Man in Fulham' would even struggle with this one!

 

[BeautyScientist]

I've yet to do an online claim - so suspect this might not be possible, but with 'old' paper claims it was often effective to email a copy of the claim giving them 3 days before submission.

Moving forwards, I'd says there are 3 fundamentals to stick to in any collections process

1. Know exactly what you want.
2. Tell them what you will do.
3. Do it.

Yes, that sounds like a good plan.

 

[Mark T Jones]

Yes, that sounds like a good plan.

At risk of being repetitive (I'm being repetitive)

The third step is the critical one!

Day 3 - submit. If he promises payment in a fortnight, remind him that you are submitting on day 3; after which he may be liable for fees. That's for him to decide.

 

[BeautyScientist]

At risk of being repetitive (I'm being repetitive)

The third step is the critical one!

Day 3 - submit. If he promises payment in a fortnight, remind him that you are submitting on day 3; after which he may be liable for fees. That's for him to decide.

I consider myself told. You are absolutely right of course.

 

[MBE2017]

I would write, give a minimum seven days notice of legal action, and use the final words NO FURTHER COMMUNICATION WILL BE ENTERED INTO.

Of course, once the seven days notice is finished, YOU MUST CARRY OUT YOUR WARNING, otherwise it all becomes pointless. List the charges and fees which will be added to your claim, it tends to wake most people up.

Going forward, decide on your policy and stick to it, this client for instance I would remove ANY future credit from on the spot, but it’s your business, you decide what you do.

 

[Paul Kelly ICHYB]

I take the view, which I think folk on here will agree with, that I am entitled to payment now

Well that will depend on your contract and title of goods.

 

[Paul Kelly ICHYB]

'Little Man in Fulham'

Who is that?

 

[Newchodge]

Who is that?

I think it is the mythical man with a baseball bat.

 

[Paul Kelly ICHYB]

I am just up the road and might know him!

 

[Bob Morgan]

I have to disappoint you all! Research John Cleese being interviewed about his mother's depression. I have mentioned it several times before. There is video on YT.

'The Little Man in Fulham' is merely a a euphemism - Just like 'Big Ron and Razors,' who first appeared in 'The Long Friday!'

 

[pentel]

Irrespective of how nice your perceive this person to be anything we ever supply to a customer is a gift until it is paid for.

 

[Lisa Thomas]

I've seen this so many times.

Often people don't pay because they don't have the funds, which usually means there are other creditors out there trying to get paid too.

Best bet is to carry through with your threat, especially as not doing so gives the impression he can continue to fob you off.

 

[Paul Kelly ICHYB]

Also, try to get possession of the stock, if the contract allows it.

 

[The Resolver]

Also, try to get possession of the stock, if the contract allows it.

Which is why it is SO important to have a clause in your contract of sale that makes clear legal ownership of the goods does not pass to the buyer save when paid in full.

 

[The Resolver]

Probably one for @The Resolver but it strikes me as something that could/should go through mediation.

Absolutely ..and before commencing proceedings in court. In fact this is what the Practice Direction on Pre-Action Conduct requires

The point is that once proceedings are issued that may be the end of any future business. Mediation will not simply look at obtaining the payment that is well overdue but will investigate whether there is value in the eyes of the OP in wanting to retain the business relationship albeit under stricter payment rules in future. The OP must consider whether the network this guy has developed has a value to him. After all he did sell the product. That may be worth more than suing getting his money and no l;onger benefitig from his marketing/sales skills/ Yes, he has been badly treated and should have been stronger but that is history, Mediation is about he future. A new arrangement, by the way, as I say in my eralier response , would prohibit perhaps title in the goods passing on through onward sales without prior payment.

I feel sure this is just the sort of situation that will indeed benefit from mediation or at least a realistic and pragmatic negotiaton.

I would be very interested , not just in mediating in this case but in offering use of Smartsettle Infinity that uses AI to enable anonymous negotiation that removes emotion out of the process and helps 'nudge' the parties into reaching agreement,. You can see a demonstration in a video of a talk I gave to the annual conference of the Civil Mediation Council. The tool I am referring to is covered from 21mns 40 seconds There is a much shorter 5 m video using it to resolve a post divorce family dispute seen here. Infinity demo is starts at 1mn 18secs

The OP is welcome to have a 30 minute free call with me so I can explain in more detail and answer any questions.

 

[MOIC]

What’s the amount outstanding?

Does the stock you delivered, have value if it was returned?

If he returned the stock, could it be resold to cover (at least) the balance owed? If so, that might be the best course of action, if he was to agree with it.

 

[Lisa Thomas]

If OP has valid ROT terms the debtor may not need to agree with it.