CCJ against company.Want to make director liable

[Dustymunchkin]

I advanced a company £2000 for a project they failed to complete. They refused to refund so I took them to small claims and won by default as they didn't attend.

They sent me email saying company had ceased trading so they wont pay although they appear to be trading under new company name (one word different from old company name) The company has a sole director. I requested copy of cheques before the hearing to see if they had gone into directors personal account but they didn't reach me. (still haven't)

In the court, I was a bit nervous but I did ask judge about making the director liable and the judge replied that it was based on the contract and contract was with the company.

However, the contract does not have the obligatory Company info on it. Name and address are there but no reg. number or country of registration. Not only that, under Tax liabilities, it states:

The Company and the Contractor declare and confirm that it is the intention of the parties that the Contractor shall have the status of a self-employed person and shall be responsible for all income tax liabilities and national insurance or similar contributions in respect of his or her fees and accordingly the Contractor hereby agrees to indemnify the Company in respect of any claims that may be made by the relevant authorities against the Company in respect of income tax and national insurance or similar contributions relating to the Services under this Agreement.

I'm not in a position to chuck loads of money at this. All communication was signed by the director on non-headed email or letter. I'm certain that any company assets will have been hidden if they ever existed (company is in first year so no accounts)

Director has made it blatantly clear that she has no concept of company law or any compunction about bending the rules.

Any suggestions more than welcome.

Just for clarity: The contract is referring to me as the company (I'm not, but I am a sole trader) and the director as contractor

Edited January 22, 2009 by Dustymunchkin
clarity

[BankFodder]

If they failed to comply with the requirements of a LTD company, then you will probably be able to sue the director personally. Especially in view of the statement which you have discovered under tax liabilities.

 

Bring another action.

[Dustymunchkin]

Thank you!

I presume I will have to pay the £415 in fees again to go through the small claims a second time but am I allowed to bring the same action against what is effectively a second party when the CCJ is already against the company and if so, might I be able to reclaim the first £415 costs (I suspect that might be pushing it)

[militantconsumer]

Have you done any research with Companies House? You can look up the name of any companies (including dissolved ones) to find out what has happened - e.g. is it the same company that has changed its name, or has the old company been liquidated? If you have a CCJ against a company that is still in existence it should be enforceable (by court bailiffs if necessary).

[militantconsumer]

Does it really cost £415 to bring a £2,000 claim with the small claims court?

 

Another thought - if you discover any fraud involved then the director is going to have a lot of explaining to do.

[Dustymunchkin]

Thank you both. I have checked CH. Director has been setting up Co names all year. Well 4 to be precise. It's like she's read the 'Beano Book of Company Scams for Girls'

She says she didn't go to court because she was told she couldn't defend a company that had ceased trading. (obviously it hasn't really ceased trading) and that otherwise she would have counter-sued me.

I've advised her to apply to have the judgement over-turned and stop taking advice from Noddy.

I'm sure she won't but if she did it would be cheaper and resolve my question. Can I get a second judgement on same case?

 

As for fraud. I think she'd explain that it was legitimate to set up a new company when the first one was empty. She'd be very surprised if a judge thought it was wrong. I can imagine her saying 'Daddy did it all the time!'

 

And yes. £415 was way more than I imagined. Starts at £35. Then £80. Then £300 if it goes to court. I never really doubted I'd win - contract was absolutely clear that I'd be refunded in the event of non-supply - I did think they might refuse to pay. It's a tough decision to make. In the end, it was the moral issue that made me keep going.

 

In a way, a higher charge with some kind of rebate to the winner would be fairer (You listening Gordon?) Under this system, the real crooks, the ones who wont pay, won't be taken to court either.