East London Solicitors

Commercial Litigation and Dispute Resolution – FAQs

Q.What should I do if I receive a Court claim

As soon as you receive the form you must act because as soon as the court form has been served on you the the clock starts ticking and you only have a limited time to respond.

The choice that you have here is whether to acknowledge service of the form (and then file a defence later) or to enter a defence immediately. The most advisable route to take is to send off the acknowledgement of service form and then serve your defence later. It is vital that you do not ignore Court forms because if you do not respond either way within the time limit a judgment can be entered against you for this reason.

Q. Debtors owe my business money- how can I get them to pay?

There are several options in getting debtors to pay. If the debtor is not paying for a certain reason then this is considered a dispute. Your solicitor will try and help you resolve this before pursuing the debtor for the amount owed.

The first thing you which should be done is a letter sent demanding immediate payment of the debt. If the debtor refuses to pay your solicitor can negotiate the debt on your behalf. If negotiation does not result in a suitable outcome for you we will consider court proceedings or other out of court methods of recovery such as alternative dispute resolution.

Q. I have been sent a “statutory demand” what is it and what should I do?

This is the first approach to insolvency and bankruptcy proceedings. Again time is of the essence in this circumstance which means you have a limited period to respond. You should therefore apply as soon as possible to the court to set aside the demand. If you agree that the debt is owed you have 21 days within which to pay the debt.

If these deadlines lapse your creditor will be able to submit a petition to the court to make your company insolvent or make you bankrupt.

Q. what can I do if one of my contractors/suppliers lets me down?

The first point of reference is to examine the contractual agreement. These are sometimes contained under terms and conditions but may also be found in certain draft documents as well as in correspondence or oral words and representations.

After analysing these agreements you should consider which terms are binding and non-binding. This will normally depend on whether the breach is a fundamental breach ie goes to the very root of the contract. If the term is considered sufficiently serious this will be considered grounds for termination. If not then damages will be regarded as adequate compensation.

A fraudulent breach should be handled by seeking legal advice.

Q. My opponent has failed to pay a judgment order- what can I do?

It is possible to request that the Country Court Bailiff attends the premises of your opponent to request payment. If payment is not made the Bailiff can seize the debtors goods.

An alternative to this is to make a third party debt order if you know that the defendant is owed money from another party. This order allows you to act as the defendant in trying to recover your money directly from the third party.

If the defendant cannot afford to pay off a debt it will be advisable to apply for a charging order. This prevents any sale of property from the defendant without first giving what is owed.