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Ash
Ash, Solicitor
Category: Law
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Experience:  Solicitor with 5+ years experience
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A is suing me made on my behalf to a third party

Customer Question

A is suing me for payments made on my behalf to a third party to provide full wedding reception services. We had agreed to fund the reception jointly. Documents that she disclosed show that some of the payments were made by (a) her friends/agent and (b) by a limited liability company of which she is the sole director and shareholder.
Can she sue me for those payments, given, in part that (i) she did not suffer personal monetary loss (ii) she should not have used company funds for non business purpose (personal wedding reception) in any event?
Submitted: 8 months ago.
Category: Law
Expert:  Ash replied 8 months ago.
Hello my name is ***** ***** I will help you with this.Did you have a contract? If so was it with the person personally or the Ltd co?
Customer: replied 8 months ago.

She states that there was a verbal agreement between me and her not the limited liability company. But let's assume for now that there was such a verbal agreement with her. The question is, can she recover sums of money that were paid by others and by the company in circumstances where she was not out of pocket?

Expert:  Ash replied 8 months ago.
No. That is because it is NOT her loss it is a Ltd company and as such SHE can not recover the loss of a third party.It must be the third party that brings the claim. There is no right that would allow her in the contract which is verbal that would allow the Ltd co to bring a claim. Only her personally.Can I clarify anything for you about this today please?Alex
Expert:  Ash replied 8 months ago.
I should however add that if the Ltd company invoices her and she incurred a loss, then potentially that could be recovered from you through her. But she needs to have suffered a loss first.
Expert:  Ash replied 8 months ago.
Does that clarify?Alex

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