County Court Claim - settling out of court

[ghamlet56]

Hello,

My old business partner and I recently received a county court claim for an old invoice. The claim is for the original invoice plus interest and costs.

We think it may be statute barred, but are unsure.

For multiple reasons, we've taken the decision to phone the creditor and make a full and final offer of the original invoice amount to put this to bed.

Providing this is accepted by the creditor, what would the next steps look like in terms of getting the county court claim withdrawn?

Many thanks.

[Diana M]

Re: County Court Claim - settling out of court

I recently received a county court claim for an old invoice. The claim is for the original invoice plus interest and costs.

We think it may be statute barred, but are unsure.

. . . . . Providing this is accepted by the creditor, what would the next steps look like in terms of getting the county court claim withdrawn?

To answer your last question first, you would make any offer conditional on the claim being discontinued and dismissed. This would prevent them from re-issuing a new claim which they could do if you don't file a Defence before any discontinuance.

This would be formalised in a Consent Order signed by both parties (the court can't order a discontinuance) which would be filed at court (£100 fee).

If you think the debt might be Statute Barred you may wish to check that out to give yourselves bargaining power for any offer you and your business partner decide to put forward.

If a claim has been issued then you need to file an Acknowledgment of Service within 19 days of the claim Issue Date to protect your legal position. If you don't do that the Claimant can enter a Default Judgment (CCJ) against you.

Having done that you will have 33 days from the claim Issue Date to file your Defence which will hopefully be enough time to negotiate.

It makes sense to proceed on the basis that you won't reach an out-of-court settlement in case you don't. It takes two to settle a dispute

How much is the claim and what makes you think they would want to settle this?

Di

[ghamlet56]

Re: County Court Claim - settling out of court

Thanks for the hasty reply, and thanks for the advice around acknowledgment of service.

The amount is £2800. Original invoice amount of £1800 plus interest as per the contract, and court fee. We have the full amount covered, however are going to table an offer for the original invoice amount.

It's a grey area as to whether the debt is statue barred. They've sent a copy of an invoice dated Jan 2011, however we wound the business up in Oct 2010. The invoice is for services between Mar - Sep 2010. I imagine the delivery of the services amounts to cause of action, however not sure whether the Jan 2011 invoice amounts to acknowledgement of the debt.

The cost-benefit of paying the amount outweighs the time we'd need to take out of business to prepare, attend a hearing etc.

It makes sense for us to let them know that we have a case for it to be statute barred, otherwise the chips are in their hand (i.e. we tell them we want to settle, they hold out until closer to the deadline, we fold for the higher amount).

Cheers.

[ghamlet56]

Re: County Court Claim - settling out of court

Also, what would the process be if we decided to settle the amount on the court papers in full to avoid a court hearing?

Many thanks.

[Diana M]

Re: County Court Claim - settling out of court

what would the process be if we decided to settle the amount on the court papers in full to avoid a court hearing?

Without knowing the full history or seeing the paperwork it's hard to comment, but if you get a CCJ and pay it off in full before 28 days then it won't be registered on your credit file or with Trust Online.

So it's up to you whether you want to contest the claim on the basis of SB.

If you win you'll owe the Claimant nothing, and if you lose you should only owe them what is being claimed on the summons.

In the small claims court the winner/loser doesn't get legal costs paid unless the other party has been unreasonable.

I suppose it's all down to whether you have an appetite for gambling

Di

[Diana M]

Re: County Court Claim - settling out of court

what would the process be if we decided to settle the amount on the court papers in full to avoid a court hearing?

There could be another option since the sum claimed means you would be eligible to free telephone Mediation if both sides agree to it (after you've filed your Defence).

This way you can settle via a negotiator and although the settlement is legally building it won't be a CCJ (unless you breach the terms of the settlement).

If a settlement is agreed at Mediation the claim doesn't proceed to court.

Di