Small Claims - LTD or T/a

[murphyb00701]

Hi,

I was hoping someone could help me, I am owed about £1k from a debtor who has closed his doors. The company was being issued delivery dockets under ABC Company and signing these dockets. When they were later credit checked it turned out they were ABC Company LTD, which was never queried when they got there delivery.

The advise I was hoping to get was, because the company signed the dockets as an individual, and never notified us the were in Fact LTD, can we pursue the debt as an individual T/a?

Thanks in advance

 

[Blaby Loyal]

Do you have a contract document to rely on?

If so, who was the other party on the contract?

If the customer made any payments to you, what account were they paid from?

Turn the tables for a moment and see yourself as this other person. What would you do to wriggle out of it? Identify what you would do then come up with a strategy to cut off those escape routes.

 

[Lisa Thomas]

Who placed the order? What did it say on their letterhead or emails etc? Any other evidence to show who you were trading with?

 

[murphyb00701]

Thanks for your reply. Unfortunately there was no account form filled in for this debtor, It was opened originally several years ago but lay dormant then a new rep came in and in a week the debt was born.

The only thing I can think of that we really have would be Proof of Deliveries for the order addressed to the individual and signed for? Not sure how much clout this would hold though

The only payment they made was £100 and it was paid for by cash.

 

[murphyb00701]

Hi Lisa,

The order would have been phoned in and placed by the owner verbally.

 

[Blaby Loyal]

First off, from what you have said then don't hold out too much hope of getting any of the £1,000 back.

What I'd suggest you do is start the pre-action debt protocol against the individual using whatever evidence you have that you were dealing with an individual t/a and not a limited company and clearly state that if the debt is not settled then you will be issuing a claim in the small claims court against them in a personal capacity.

That ought to focus their attention a bit more and show them that you mean business.

Don't forget to think about what escape routes the person might use and cut those off right at the start.

Game on!

 

[Mr D]

Don't forget to think about what escape routes the person might use and cut those off right at the start.

Game on!

Have security staff placed at all airports and ports.
Keep an eye on places that a kayak can be launched.
Watch out for diving equipment being hired or purchased.
Contact people smugglers make sure they aren't smuggling this person off the island.

 

[obscure]

The only thing I can think of that we really have would be Proof of Deliveries for the order addressed to the individual and signed for? Not sure how much clout this would hold though.

I assume you mean Delivery Notes prepared by you and sent along with goods? If so then they prove nothing other than that you made a mistake when preparing the Delivery Notes. You need proof that THEY represented themselves as an individual t/a... all you have is proof that YOU misrepresented them as t/a. They could just say they didn't notice your mistake.

How was the business identified on their letterhead and emails? What account were you previously paid from? If these things show the company as Ltd then you don't have a case.

 

[Mr D]

When you did your credit check in order to lend them money, what business did you credit check?
Did they supply the business details to you for the credit check or was it you deciding what business they ran?

 

[Big G]

If they have never raised any query with you issuing the invoices, etc in the non limited company name then you do have something to go on.

However, it is very likely that they will defend any action on the basis that it is a limited company debt and it will therefore come down to a Judge to pass Judgment on it.

To get to this stage you will have a Court Fee of around £70.00 if you go for the £1000.00 and, if they defend, you will then be ordered to pay a hearing fee of £115.00.

There is then the added time of preparing Witness Statements, attending Court, etc so it comes down to how much time and money you are prepared to throw at it as I am fairly positive that this one will go all the way.

Happy to help if you require any assistance.