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Jenny
Jenny, Solicitor
Category: Law
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Experience:  Qualified Solicitor specialising in Employment Law and general legal matters. Please start your question For Jenny Only
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Good Morning I paid a company £1,000 development

Resolved Question:

Good Morning
I paid a company £1,000 for website development work they then never completed. They have applied to companies house to have the company dissolved. I have chased for a refund and now submitted a small claims court case against the director (trading as GreenDome). They have finally responded to this defending that the contract/payments/invoices/bank account was with Green Dome and not the director. They have stated I should amend the details to substitute the defendant to "Green Dome web solutions ltd" as the director has no contractual liability as an individual although she acted as a company director.
Additionally i was contacted by another firm explaining they had acquired the physical assets of Green Dome and would like to offer me a discounted rate to do the work I have already paid for. They note at the bottom of their email that they are not liable for any undelivered work from Green Dome.
My questions are:
Should I request to delay the dissolvement application? I think I have only got until this week to do this as it is at its 3 months point.
Whilst I am a start up company and £1,000 from my business is a considerable sum and I can evidence that I have repeatedly dealt with the director and been promised completion of the work which then never happened, is it likely that I will get this money back through the small claims process? i am trying to decide if I should proceed with this course of action, whilst I feel it is extremely unfair I have paid in good faith for work that has not been started and am now having to start again with my site development (costing me more money and time) I also don't want to go through what I'm sure is going to be an unpleasant process if it's unlikely I would win.
Any advice would be much appreciated.
Kind regards
Michelle Wooton
Submitted: 1 year ago.
Category: Law
Expert:  Jenny replied 1 year ago.
Hello my name is ***** ***** I am happy to help you today. Did you have a written contract for the provision of this work? If so who is named as the other party?
Customer: replied 1 year ago.
Hi JennyI had a proposal document through originally back in 2012 and whilst it was from Penny Latif (company director) it was headed Green Dome Web Solutions.Thanks
Michelle
Expert:  Jenny replied 1 year ago.
Is Green Dome Web solutions a limited company?
Customer: replied 1 year ago.
Yes
Expert:  Jenny replied 1 year ago.
Hi I'm not clear whether you are saying that they have applied for their company (Green Dome) to be wound up? Can I just check?
Customer: replied 1 year ago.
Yes I've been on Company House today and they have filed for the company to be dissolved, they sold physical assets to another firm (Technogrounds ) this other firm contacted me offering to do the work for a fee, but said they take no liability for undelivered work from Greem Dome
Customer: replied 1 year ago.
chances of getting this money back isn't looking good I guess?
Expert:  Jenny replied 1 year ago.
Hi sadly I think you may struggle to recover the money. The director cannot be personally liable unless you can prove wrongful trading which is unlikely. There is therefore no point in claiming against the director. If you bring a claim against the company and you get judgement (before the company is wound up) then you will be a creditor of the company. You will join a potentially long list of creditors who may get some money (unlikely) back when assets are sold . HMRC debts come first and employees wages. If I am honest it may be worth putting this one down to experience. Consider whether it is worth spending the time and court fees when you are unlikely, in reality to recover. if you have any further questions please do ask. If I have answered your question I would be grateful if you would take the time to rate my answer. Thank you and all the best.
Customer: replied 1 year ago.
HiThank you and unfortunately I agree, whilst it feels very unjust I do need to consider how much time, effort and stress would go into to trying to pursue this any further through the small claims court.One last query, I have had her defence through along with an N180 form which offers mediation. Do you think it is worth suggesting that as one last attempt? Along with requesting Company House to hold the dissolution application it may tempt her to come to an agreement of some sort? (Please tell me if it's still a waste of time)Thank you for your advice and prompt response, hugely impressed and hopefully I'll never need it again, but will absolutely recommend the service.Kind regards
Michelle
Expert:  Jenny replied 1 year ago.
No Problem Michelle, no harm in trying mediation. I really hope you can sort something out. I would be grateful if you would take the time to rate my answer. Thank you and all the best.
Expert:  Jenny replied 1 year ago.
Hi Michelle is there anything further you would like to know as I can see you have not yet rated my answer which is an important part of the process?
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