The two outstanding invoices relate to November 2012 and December 2012 each £7,000 plus Vat. I wrote to the company and gave them 7 days to pay.They esponded by asking that proceedings are defered until 15 January 2013 by which time they would come up with a 'defence' as senior management would have returned following Xmas break
Is there a dispute over this? What defence are they going to come up with?
Please confirm that it was the subsidiary company that contracted with you and not the holding company .
We acted as consultants for the subsidiary company and have email confirmation that we would be paid £7k per month up to 31 December 2012.This follows on from expiry of Heads of Terms agreement that expired on 31 August 2012.We were paid £7k plus vat for months of September and October 2012.I just want to be prepared should they not offer defence or payment on or before 15 January 2013
I cannot see thatthey have a defence. They can argue (not a very good argument) that yourcontract expired in August and that therefore there was no contract to you to dothis work after that. However, the fact remains that they let you do the workand I think you are still entitled to be paid on the basis of the originalcontract as though it was ongoing. The fact that you were paid for Septemberand October seems to reinforce that point of view.
I don't knowwhether you intend to issue legal proceedings yourself or use solicitors whichI would be inclined to get the proceedings ready now and issue them on the 16th.
The court fees areall contained in form EX50 . Available from the court service website http://hmctscourtfinder.justice.gov.uk/courtfinder/forms/ex050-eng.pdf
you can issueproceedings online quickly and easily at www.moneyclaim.gov.uk
Reading the court'sfee form, you will see that the fee is £245 if you wish you on paper or £210you do it online.
There is a furtherfee for allocating the matter to a track (which caught the matter is dealt within) and that is on page 3. This will be fast tracked and the fee is £220.
If it goes all theway to court there will be a pre-trial feeof £110 and then I hearing fee of £545 (page 4). If you win, you will get allthe above costs awarded against the defendant, plus any legal costs forsolicitors. If you don't use solicitors, you can get your own time at £18 perhour. If you lose in court, you lose all the court costs and you will have topay the defendant's solicitors costs at probably between hundred and £80 perhour and £200 per hour plus VAT.
You can addinterest to the amount owed at 8% per annum simple from the date the moneybecame due provided there is no provision for interest in your terms andconditions or the original contract. Provided there is no late payment fee inthe original contract or your terms and conditions. You can also add a fixedfee in respect of each outstanding invoice under the Late Payment of CommercialDebts Regulations 2002. It is £70 per invoice http://www.legislation.gov.uk/uksi/2002/1674/regulation/2/made
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