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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 50161
Experience:  Qualified Solicitor
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I run a building company and one of our suppliers have

Customer Question

I run a building company and one of our suppliers have supplied a timber frame building for us. ( supply and fit) they said we had to pay in full before we received any guarantees or structural calculations that we require for building control purposes. We paid the bill in full on a cash account. There has also been various faults that they needed to put right and did not within a reasonable time scale, so we had to carry out the work ourselves.
We have therefore claimed compensation for the work we did and also for the customer as they have to live with numerous faults.
We also have a credit account with the same supplier and we owe £3,450 I have told them that until we receive our engineering calculations and guarantee and the issues with the work have been agreed I am withholding payment. This was agreed but now I have their solicitor threatening legal action against me unless I pay in full. They say as its a credit account that we owe money on and not the account we paid the timber frame on, and so we have to pay now and then counter claim against them!!! What is my legal rights to with this money until they sort out the issues?
Terry Payne
Submitted: 1 year ago.
Category: Law
Expert:  Ben Jones replied 1 year ago.

Hello, my name is***** am a qualified lawyer and it is my pleasure to assist you with your question today.

Expert:  Ben Jones replied 1 year ago.

How long ago did you buy the timber?

Customer: replied 1 year ago.
The timber frame was fully paid off a few months back and they said I would receive all the documents after payment is received.
The timber we received on a credit account is around three months since pYment was due
Expert:  Ben Jones replied 1 year ago.

OK thank you, ***** ***** it with me. I am in court today so will prepare my advice during the day and get back to you at the earliest opportunity. There is no need to wait here as you will receive an email when I have responded. Thank you.

Customer: replied 1 year ago.
Hi have you any advice yet?
Expert:  Ben Jones replied 1 year ago.

Hi there, sorry I only just got out of court. In many respects they are correct in what they have said. Just because you have money that is theirs, be it in a credit account, for debts they owe you or materials of theirs that are in your possession, the likelihood is that each business transition you do with them will be treated separately and will be regarded as being under its own contract. So if you have a dispute under one transaction with them, it would not automatically allow you to just offset the funds associated with that from other accounts or transactions you have with them.

So the options are as follows – you withhold the money from the credit account and they make a claim against you for it, you in turn make a counter-claim against the claim they make. Alternatively, you pay them back what is due under the credit account and then make your own claim against them for the money they owe you under the current dispute.

This is your basic legal position. I have more detailed advice for you in terms of the steps you need to follow should you decide to make your own claim against them, which I wish to discuss so please take a second to leave a positive rating for the service so far (by selecting 3, 4 or 5 stars) and I can continue with that and answer any further questions you may have. Don’t worry, there is no extra cost and leaving a rating will not close the question and we can continue this discussion. Thank you

Expert:  Ben Jones replied 1 year ago.

Hello, I see you have read my response to your query. Please let me know if this has answered your original question and if you need me to discuss the next steps in more detail? In the meantime please take a second to leave a positive rating by selecting 3, 4 or 5 starts from the top of the page. The question will not close and I can continue with my advice as discussed. Thank you

Expert:  Ben Jones replied 1 year ago.

Hello, do you need any further assistance or are you happy with the above response? Look forward to hearing from you.