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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I have a legal case where I have won and have a consent

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Hi I have a legal case where I have won and have a consent order for costs of £120K against the company. However the company is now liquidated . But i have been told that the directors funded the litigation personally . If they have funded it personally do i have a claim against them personally for my costs?

 

One of the Directors paid the money personally while the other paid on his credit card another transferred funds directly from his other limited company account to be used to pay for the litigation.

 

The case had two claimants, One director was listed jointly with the company being the second claimant.

 

The case was struck out and costs awarded to me . If i do have a case how do i get the records to prove they paid for the case personally ?  

Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
Was the court order against the company or them personally?
Customer: replied 2 years ago.

Hi, This was a rather messy ltigation with me as the defendant and the Claimant being the company, however the company ran out of money to pay for the litigation and the directors started to fund it using their own money. I know this unofficially from one of the directors and it has been hidden. The directors went to the courts under an IA 236 action by the liquidators and had a request granted that prevents the liquidators and my lawyers, who also act for the liquidators, supplying me with the documents showing the claimants lawyers schedule of payments / accounts and who made the payments. The liquidators had to issue a 236 against the Claimants Solicitors in order for them to release the records to them, at the hearing they requested I was not to see any material obtained under IA 236. So i will never know , firstly can i get access to this information as the largest creditor to show i am owed my legal fees of well over £100K and secondly do i have a case if the litigation was in anyway funded by the directors personally even though the consent order was against the company ?

Expert:  Ash replied 2 years ago.
Who did D individuals pay? The Sols or did the £ go into the company first?
Customer: replied 2 years ago.

I believe one of the Directors paid directly to the Solicitors on his Credit Card, the other two paid money into the company .. it is the Director who paid on his credit card that i am concerned with .

Expert:  Ash replied 2 years ago.
It all depends on the accounting. if it went to the Directors loan account then sadly I do not think you have any hope. That is because in effect he could argue he paid it on behalf of the company.
If he paid the Solicitors and it was not recorded on his Directors loan account then you could have an argument he funded it personally and that being the case he could be personally liable. I still think that it may be a weak argument but it is something you could run.
Therefore you need to find out how it was recorded. If no record and not on the Directors loan then a potential claim.
Can I clarify anything for you about this today please?
Alex
Customer: replied 2 years ago.

That is what i thought - There is no directors loan acount , this was never recorded . At the liquidation the only creditor was me . All three directors actually stated they were not owed any money by the company and they never recorded the payments to the solicitors as loans - so There is no record.

However the issue is how do i get hold of their solicitors payment records as this is now with the liquidators obtained under IA 236 . As the main creditor am i entitled to look at the company / solicitors payment records to verify he paid / funded the case directly ? This is the only evidence that will allow me to have a case for recovery - given there is no Directors Loan account ?

Expert:  Ash replied 2 years ago.
You could ask the court for an order for specific disclosure. The court may or may not grant this. They should because it's not a fishing expedition, you want specific documents.
Alex
Customer: replied 2 years ago.

Thank you - I will make an application to the court for specific disclosure !

happy to close and pay you !

Expert:  Ash replied 2 years ago.
Thank you
If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.
If you need more help please click reply.
Alex
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
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