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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I had a dispute with a builder (a limited company) which ended

Resolved Question:

I had a dispute with a builder (a limited company) which ended up with us being taken to arbitration. We were awarded £16,800 as a result of the arbitration, but the builder is claiming he cannot afford to pay as his total losses including the award equate to around £40,000 and has offered via a third party a settlement of £4,000.
The £16,800 awarded to us will not cover the cost of making good the work, and we have had extensive costs involved with providing evidence for arbitration, so for us £4,000 is quite insulting.
The builder has said he has put things into the hands of another company, and any attempt to contact him, involves a push back to this other company. The other company in question put forward the initial £4,000 offer and are not responding to any further communication.
We served a statutory demand on the Builder for the £16,800 about a month ago, but apart from an acknowledgement of receipt of the accompanying letter. The only communication from the builder is to once again state that he will only pay £4,000.
There has been no indication from the Gazette or companies house of any insolvency action, but last week the builder did change the registered address of his company from his home to an accountants address.
What would be the recommended process to follow next? I am prepared to be pragmatic about this, but stand to be approximately £40,000 worse off as it stands, so would like to recoup as much as I can.
Jon
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

Do you know if the Company has any assets please?

Customer:

It looks like no, COmpany accounts show a credit of less than 1,000.

Alex Watts :

Ok. Then you need to be pragmatic.

Alex Watts :

If you make bankrupt you need to pay the Court fee and the Official Receivers deposit.

Alex Watts :

Let me just get those fees

Customer:

about 1,400 I think

Alex Watts :

Yes around that.

Alex Watts :

So you can take a punt to see if the OR can discover assets.

Alex Watts :

Or you can take a hit.

Alex Watts :

Sadly legally it is that simple. You make a commercial decision either way

Customer:

But Is he alklowed to still be trading, if he owes me tis money and says he cannot pay

Customer:

Sorry about my typing

Alex Watts :

If he trades then he can't under the name of the Comapny

Customer:

His personal situation seems to be far from pauper status

Alex Watts :

The OR would then take control of all his assets and money

Alex Watts :

Yes. But sadly you have no contract with him personally but the company

Customer:

SO if I underastamd what I have gleaned from the web, only the OR can make a decision whether he has or is illegally trading

Alex Watts :

Yes

Alex Watts :

Sadly

Customer:

Thanks for your help Alex, after the fact I can see this is his third company that has gone down owing money to creditors. It seems the law has no answer to this

Alex Watts :

Indeed. But the OR may then recommend he is disqualified as a Director.

Customer:

Or is there one

Customer:

OK

Customer:

Thanks again for your help, have a good day

Alex Watts :

Happy to help. If I could ask you to rate my answer before you go today please, the button should be at the bottom of the screen

Alex Watts :

If you need more help please click reply

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