Success for Dispute Resolution and Construction Team
Rogers & Norton’s Dispute Resolution and Construction Team have recently secured payment in full of a debt of almost £62,000 plus the vast majority of their client’s legal costs on behalf of a construction client whose customer had failed to pay an invoice for building works carried out at the customer’s property.
The invoice had been outstanding since March 2020 and, despite making various complaints about the standard of the works, the customer had failed to serve a Pay Less Notice. Our client had chased for payment on several occasions, but the customer refused to make payment, continuing to allege that the works were defective.
Upon receiving instruction to recover the debt, we drafted a Statutory Demand the same day as instructed, and personally served it upon the customer. When the customer failed to respond, we presented a Winding-Up Petition in the High Court. it was not until after the Petition has been advertised in the Gazette that the customer instructed Solicitors and agreed to pay the debt in full, together with the vast majority of our client’s legal costs, in order that the Winding-Up Petition could be withdrawn without the need for the parties to attend a Court hearing.
This case shows the importance of serving a Pay Less Notice under s. 111 of the Construction Act 1996 if you wish to withhold payment, in part or in full, for a construction contract. It also demonstrates how powerful the prospect of insolvency proceedings can be to persuade a debtor to make payment.
The Dispute Resolution and Construction team at Rogers & Norton have vast experience of pursuing and defending debt claims via money claims in the County Court or through insolvency proceedings. If you are currently owed money, or are dissatisfied with works that are being carried out on your behalf and wish to withhold payment of an invoice, we can help. Please contact Peter Hastings at ph@rogers-norton.co.uk or Elizabeth Gibson at eg@rogers-norton.co.uk.