SEO Company shirking debts

[Scotty71]

I'm posting this on behalf of an employee.

L. has previously worked freelance for an SEO company, who now owe her £4,000. This is for invoices stretching back 11 months, and her work (copywriting) has been used by the agency and appear on its customers sites and blogs.

She has now threatened Small Claims, the Finance Director has come back to say there's no point as they're being bought out. The company still exists in Companies House as a Ltd company.

I find it absolutely appalling that a company can treat people like this, but having dealt with both the agency itself and the one that's buying it, unfortunately it doesn't surprise me in the slightest.

The question is, what can L. do? The FD has said if she puts forward a payment schedule he will discuss it with the directors, but he's simply laughed at one that suggested payment over a few months. She';s now asked him what he thinks reasonable, given that one debt is nearly a year old I think he's really trying it on.

Should she push ahead with Small Claims?
Surely if a company is being sold, the debts are sold with it and still need to be paid?

 

[MikeJ]

Yes.

Also, since the work hasn't been paid for I'd suggest she threatens to contact the clients that are using her copyrighted work.

 

[iJustice]

L should proceed soonest so she is in a position to enforce Judgment.

Start by calculating the claim. Enter the details of each invoice on a free to use Late Payment Calculator. Total all the amounts including compensation and interest due under the Late Payment of Commercial Debts (Interest) Act. (Calculate the over due date from the day after your Payment Terms ie if you ask to be paid within 30 days then calculate from 31 days after invoice).

You could make a fixed sum money claim for 'breach of contract under your standard terms and conditions for non payment of invoices together with compensation and interest at 8.5% under the Late Payment of Commercial Debts (Interest) Act 1998/amended', through MCOL, or

An unspecified claim for breach of contract under your standard terms and conditions for non payment of invoices together with compensation and interest at 8.5% under the Late Payment of Commercial Debts (Interest) Act 1998/amended plus at the discretion of the Judge aggravated damages for breach of copyright. You will not be entering figures on the N1 form, instead under the Value section you would state 'I expect to recover not more than £5000'. You complete a paper copy of the N1 form and it to the County Court Money Claims Centre (CCMCC). You send 2 copies of the N1 to court, the court keeps one and serves the other on the defendant.

I hope this helps

 

[Scotty71]

Thanks both. What about the fact the company is in the process of being sold? The Financial Director suggested this would make it useless trying to pursue a claim as the original company would no longer be in existence once the action was resolved.

 

[MikeJ]

That's crap. If a company gets sold, its debts go with it. If it was wound up, that would be a different matter.

 

[Chris Ashdown]

Just issue a small claims action which you should have done many months ago and stop Faffing about

 

[TODonnell]

Never let people run up a debt like that with you. The bigger it gets and the later it gets, the more probability it won't be paid. I read a comment years ago which went like "Why do we even give people 30 days to day? They have the goods, pay up now!"

 

[Ian J]

Also, since the work hasn't been paid for I'd suggest she threatens to contact the clients that are using her copyrighted work.

That could be deemed to be harassment as she has no contract with her customer's customers

 

[MikeJ]

If I use one of Getty's images, they'd be after me. I don't have a contract with Getty though. Granted, it's not the end user's fault, but it's a threat the SEO company would respond to.

 

[Ian J]

If I use one of Getty's images, they'd be after me. I don't have a contract with Getty though. Granted, it's not the end user's fault, but it's a threat the SEO company would respond to.

That's different as Getty hold the copyright to their images whereas this lady was contracted to provide copy for her customer and the copyright would therefore belong to her customer

 

[fisicx]

...who now owe her £4,000. This is for invoices stretching back 11 months

If they weren't paying the bills why was she still working for them?

However...

The chances of her getting any money out of them is almost zero. It won't just be her claiming, it will be all the thousands of other copywriters who haven't been paid as well.

 

[CompactLaw]

Would recommend letter before action.
Please see our co.uk site for a free one, under free legal documents

 

[CompactLaw]

Also, given all the delay I would not give them long to pay, say 14 days.

 

[MikeJ]

That's different as Getty hold the copyright to their images whereas this lady was contracted to provide copy for her customer and the copyright would therefore belong to her customer

Not if they don't pay for it (depending on their T&Cs). Either way, it's a threat I'd make to put pressure on them to pay up.

 

[GRDCredit]

Whatever she/he does - do something. Too much time has already passed