Taking legal action against a builder

[AdHut]

New to this forum and helping you can help.

Early this year I bought a new build house from a developer, on a development of four houses.

Unfortunately, it turns out that we have some large issues with the house that the builder is refusing to do anything about, roofs, drains, entrance gates etc.

It is not just my house but that has issues, and three of the four families have decided to take him to court, together. To put into perspective the cost of the three homes together £2.4 Million, with the cost of the outstanding work has amounted to over £200 K and counting!

We have tried to mediate with the aid of our solicitor, but with no success, and have been permitted by his side to move to start court proceedings.

He and his co-directors are currently building another development of eight houses nearby, however under a different but very similar named LTD company. It uses the same addresses, marketing channels, accountants etc. But the LTD company that built our houses no has no value left to it.

My concern is that he is going to go into voluntary liquidation, to escape anything the court may award to us. Is this possible, or if any penalty is awarded, could it be imposed on the directors personally or could we link the two businesses together, as it is obvious that they are being run as one entity?

Thank for your help.

[jaguarsuk]

New to this forum and helping you can help.

Early this year I bought a new build house from a developer, on a development of four houses.

Unfortunately, it turns out that we have some large issues with the house that the builder is refusing to do anything about, roofs, drains, entrance gates etc.

It is not just my house but that has issues, and three of the four families have decided to take him to court, together. To put into perspective the cost of the three homes together £2.4 Million, with the cost of the outstanding work has amounted to over £200 K and counting!

We have tried to mediate with the aid of our solicitor, but with no success, and have been permitted by his side to move to start court proceedings.

He and his co-directors are currently building another development of eight houses nearby, however under a different but very similar named LTD company. It uses the same addresses, marketing channels, accountants etc. But the LTD company that built our houses no has no value left to it.

My concern is that he is going to go into voluntary liquidation, to escape anything the court may award to us. Is this possible, or if any penalty is awarded, could it be imposed on the directors personally or could we link the two businesses together, as it is obvious that they are being run as one entity?

Thank for your help.

It seems if you win a judgement then you'll have a very expensive bit of paper and nothing else. Unless the Ltd company you dealt with has assets then you're on a hiding to nothing. It doesn't matter if the other company is similar in name and trading from the same business address, it is a separate legal entity and not liable to you.The whole point of registering a Ltd company is to remove the directors personal liability and so you couldn't pursue them either.

[wales01man]

Is there a NHBC guarantee on the house?

[james_law]

Literally would not bother with NHBC, they are completely useless. A supposed independent and impartial company, which in truth is funded by the builders. You'll probably find the builder will hide behind NHBC and say 'I'm not responsible as they signed it off'.

So as your house is within the first two years, the builder is liable for any repairs. But, as they are not 'around' any more you would probably have to wait 2 years before you can lodge a claim with NHBC which I would not bother with as per the above info. As stated by jaguar, the company you sue needs to have something of value to give you i.e money/sell-able assets, which by what you have said would assume they have nothing.

People like these 'developers' get away with so much, they just carry on doing the same over and over again.

[St John]

For that kind of money, seriously, I would suggest a threat, and then a fulfillment of that threat (recurring until satisfaction if necessary ) of violence. Yes, I know it's illegal. I am serious.

[Amethyst]

Yeah, not a good plan AT ALL, illegal and serves to help no one.

More useful would be to investigate making a complaint with the Insolvency service over the phoenixing of the company - have a read https://www.gov.uk/government/public...lvency-service - has the original company been completely dissolved/liquidated etc already ? you can stop the liquidation if it hasn't concluded if there are claims outstanding against it - https://www.gov.uk/object-to-a-limit...ing-struck-off - https://www.gov.uk/find-out-if-a-com...ancial-trouble etc.