County Court Claim received for an alleged commercial debt

[nutter192]

My friends boss who runs a hair salon today received a country court claim from an ex-supplier

who is claiming for an alleged outstanding balance from two and a half years ago.

 

 

The boss is not computer literate and therefore I am assisting her in the matter.

 

 

The products provided by the business supplier were inferior to other suppliers and she sent all the products back.

 

 

The supplier is now attempting to claim for monies allegedly owed even though he hasn't sustained any losses.

 

 

The particulars are very vague and I have a feeling that an embarassed defence is the way so far, grateful for any advice.

 

 

I have filled out the template for claim form below:

 

You have received a

claim form

.

 

In order for us to help you we require the following information:-

 

an individual

 

Date of issue – top right hand corner of the claim form – this in order to establish the time line you need to adhere to.

 

14th November 2014

 

What is the claim for – the reason they have issued the claim?

Product supplied and not paid for. The claimant claims interest under section 69 of the County Courts Act 1984 at the rate of 8% a year from 20/7/2012 to 13/11/2014 on £1250.00 and also interest at the same rate up to the date of judgement or earlier payment at a daily rate of £192.00.

 

What is the value of the claim?

 

£1320.00

 

Is the claim for a current or credit/loan account or mobile phone account?

 

The claim is for a commercial balance that should not exist due to the products being returned. Also, he is suing the boss as an individual at the business address. It does not mention anything about trading as etc.

 

When did you enter into the original agreement before or after 2007?

 

N/A

 

Has the claim been issued by the original creditor or was the account assigned and it is the Debt purchaser who has issued the claim.

 

Original creditor

 

Were you aware the account had been assigned – did you receive a Notice of Assignment?

 

N/A

 

Did you receive a Default Notice from the original creditor?

 

N/A

 

Have you been receiving statutory notices headed “Notice of Default sums” – at least once a year ?

 

N/A

 

Why did you cease payments:-

 

N/A

 

Was there a dispute with the original creditor that remains unresolved?

 

Yes, the products supplied by the supplier were of an inferior quality and all products were returned. The creditor demanded payment around the time in July 2012, however failed to take action till now. No Letter before Action had been received. Also, there is no known paperwork to hand regarding this matter. No paperwork has been supplied with claim form.

 

Did you communicate any financial problems to the original creditor and make any attempt to enter into a

debt management

plan?

 

N/A

 

You may use a CPR

part 18

request for any other information (not request documents) that you might require in order to defend yourself.

Please not that CPR 18 is specifically for Fast Track claims and although technically the claim has yet to be allocated to a track the claimant may refuse to comply for this reason.

 

If you require CPR Part 18 - this will need to be drafted specifically.

 

Would CPR Part 18 be useful to me in this particular instance?

 

[dx100uk]

as far as I know

the embarrassed defence should now never be used.

 

 

simply put them to strict proof of what they claim

 

 

dx

[steampowered]

I don't think you should use an embarassed defence because it is already clear to you what the claim is about. It doesn't sound like a request for further information or a CPR Part 18 request would tell you anything you don't already know.

 

I think a proper Defence has to be filed explaining why liability is denied. This needs to explain (1) why the goods were not of satisfactory quality, as required by s14 (2) Sale of Goods Act 1979, (2) that the goods were rejected and (3) that the seller accepted the goods back.

 

If the claim is made against an individual but should have been made against a company, this should also be mentioned.

[nutter192]

Thanks Steampowered

 

Are there any template defences that I can adapt to the claim that I have?

 

Also, if the claim should have been against the company, how does that affect the defence?

[nutter192]

Another point is that it was so long ago, there is no paperwork to hand that even tells us what the products were in detail or any correspondence relating to non payment. Is this something that should go in the defence as a request for information or shoud it be sent seperately?

[nutter192]

I have drafted a defence, could you have a look at it and tell me what you think?

 

 

1. I, **************, am the defendant in this action and make the following statement as my defence to the claim made by ***********.
 
2. Except where otherwise mentioned in this defence, I neither admit nor deny any allegation made in the claimants Particulars of Claim and put the claimant to strict proof thereof.
 
3. The defendant denies that she owes the sum of ******* to the claimant.
 
4. The defendant supplied the business of *************** with hair and beauty products that were subsequently found to be not of satisfactory quality under the Sales of Goods Act 1979. The products were rejected the defendant and returned thereof to the claimant soon after. The claimant accepted the goods back, however demanded payment for the goods despite their return.
 
5. The defendant denies the claimants inference in the Particulars of Claim that the product was supplied and not paid for as the products were returned. Therefore, it is incomprehensible as to how the claimant has sustained any losses in this matter.

6. The claimant has not supplied the defendantwith any documentary evidence of such losses as necessary to sustainhis claim nor has he supplied the defendant with a letter beforeaction seeking to resolve the matter amicably as per the Civil Procedure Rules.

 

 

 

 

7. The claimant is suing the defendant as anindividual. This is incorrect as it is the company of ************* that should be listed as the defendant. Thedefendant, at no time, provided any personal guarantee on the supplyof these products.

 

8. Consequently, I deny all allegationson the particulars of claim and put the claimant to strict proofthereof.

[dx100uk]

point 2 is an embarrassed defence - not necessary?

 

 

you cant say that

then use denied in the rest of the points

[steampowered]

I think the Defence looks good, well done. I would add a brief statement of the reason why the products were not satisfactory quality.

 

In point 4, I think you could be clearer on when the claimant began demanding payment. Did they ask for payment at the time, or are they only asking for payment two years later?

Another point is that it was so long ago, there is no paperwork to hand that even tells us what the products were in detail or any correspondence relating to non payment. Is this something that should go in the defence as a request for information or shoud it be sent seperately?

I'd leave it out. I'm not sure it really matters to be honest. He'll have to provide the documents he intends to rely on at disclosure, which comes later in the run-up to the hearing.

[nutter192]

Well after 9 months, a court date has been set for the third week of September.

 

Mediation was cancelled by the claimant as he couldn't go through with it. Defendant was quite prepared to mediate.

 

Letter sent to claimant with N180 stated that mediation would be more beneficial than continuing with the claim - no response to this.

 

I have spoken to my friend's boss and she says she can show that she made payments of approximately £600.00 before the items were returned. She is still storing some of the claimants items which are worth £300.00. The claimant has failed to collect the items.

 

Therefore, it actually works out that she is owed £300.00 as the items were returned. She is not worried about his however and just wants to get rid of him. There was an occasion in the summer of 2013 when he came into the shop and ranted and raved about seeing her in court. No written correspondence was received before the court claim.

 

I have said to my friend's boss that the best way would be to negotiate with the claimant. I suggested that we show the claimant proof that payments of £600.00 have been made. The items have been returned and he is welcome to the remaining items still in the shop. I believe this would be seen as reasonable if he rejects negotiations before a judge. To date he has failed to provide any invoices or delivery notes etc. Shall I mention this in negotiation letters?

 

I know that costs are not usually awarded in a small claims court, but if the claimant has been unreasonable in submitting the claim and his conduct in this matter, would a judge consider costs?

[steampowered]

I believe this would be seen as reasonable if he rejects negotiations before a judge. To date he has failed to provide any invoices or delivery notes etc. Shall I mention this in negotiation letters?

The order would normally provide for the parties to exchange the documents they intend to rely on a certain number of days before the hearing. If you think invoices are required then ask to them, and point out to the judge that they have not been provided if you don't get them.

 

I know that costs are not usually awarded in a small claims court, but if the claimant has been unreasonable in submitting the claim and his conduct in this matter, would a judge consider costs?

Absolutely. It is possible to claim costs at the litigant in person rate of £18 an hour if a party has behaved unreasonably. The important thing is to put in place a paper trail. If you put a settlement offer in writing and that offer is not accepted, that would help enormously if you want to claim costs.

[nutter192]

I'm doing the witness statements and have got the gist of it, however, it has become known to me via my friend that she has proof of payments for the disputed invoice. Would I be mentioning this in the witness statement with reference to the documents in the witness statement as well?

[Andyorch]

I'm doing the witness statements and have got the gist of it, however, it has become known to me via my friend that she has proof of payments for the disputed invoice. Would I be mentioning this in the witness statement with reference to the documents in the witness statement as well?

 

Yes and attaching copies as evidence (exhibits)

 

Andy

[nutter192]

This is getting interesting now.

 

My friend has received the witness bundle of the claimant.

 

 

It was initially sent by email which was un-openable.

Was sent by recorded delivery reaching her on the 11th September (case is scheduled for 22nd September).

 

 

The witness statement is very generic with no reference to any exhibits specifically and no explicit reference to the actual invoice which is outstanding.

 

 

There is a massive list of statements showing credits and debits on a company account which he is not associated with, he was selling off his own back.

 

the documents are just a pile of invoices and running accounts.

He is trying to claim for his own costs as well.

I think he sent the documents late and copied my example that I sent to him.

 

Would the court make a ruling about the bundle being sent to my friend late so he couldn't rely on it on the day (for all the good it is)?

 

Also, would a skeleton argument have to be done for the hearing?

 

His application for court costs is very generic. He's also put in his initial court fees as seperate!

[nutter192]

Bit of an update.

 

Original hearing date cancelled due to judge been ill. Friend received letter from court stating that claimant had to pay hearing fee by the 18th November.

 

She rang up on 20th November only to be told that he's been granted an extension till the 24th! She thinks is should have been stuck out as per the Order of the Court form. Is it worth writing to the court pointing this out? She has already rung them.

[nutter192]

bump

[steampowered]

Personally, I don't think it is worth pursuing the non-payment of hearing fee issue yet. It is usual for people to be granted an extension if they fail to pay the hearing fee, and the case will eventually be struck out if they still fail to pay it. There isn't much chance of having the case struck out because he/she missed the original deadline.