Invoicing Issue Without Contract for 'Pro Bono' works

[AcmpRun451]

Hi All,

I am seeking some advice regarding a situation that has arisen. The matter involves work carried out at a business premises by an ex-family relative, who implied and evidence suggests, that the work they did was a gift of service and carried out on a pro bono basis. There remains no formal contractual agreement, no signed purchase order, no quotation and now just an invoice for 'various works' that has arrived almost 18 months after the involvement of the party.

We have requested documentation, a breakdown of costs, and any agreement showing where the cost to the work was provided, because of the nature of the gift of service, no opportunity was there to instruct any other contractors. There is also no record of the party ever being hired or instructed to carry out the work, and evidence (forms of text) suggests in fact he exercised full control over the works autonomously, without any request for authorisation or approval on costs. This fact is further evidenced by the party's statement of, "Take the cost out of it," clearly indicating that this was indeed a gift of service.

We believe this situation arose due to a breakdown in the relationship between the party and a director of our company. Since their disengagement, they may have felt a sense of loss and attempted to retroactively seek compensation for their involvement.

There was never any discussion of cost, they unilaterally instructed the works without any prior discussion of cost or labor. The situation becomes even more intricate when it intertwines with personal matters. There is no documentation or communication that could reasonably be interpreted as an agreement to pay for the services rendered, and they have declined our request for the documentation 'I acknowledge your request for detailed documentation and evidence of agreements however we also know that the project and our directors' past personal relationship may have contributed to a lack of this formal documentation.'

They have attempted to claim the existence of a verbal agreement, yet they are unable to provide any specific details regarding when this alleged agreement took place. Moreover, their claim contradicts the evidence provided by the messages we possess, which clearly indicate otherwise.

The party has now issued us with a 7-day letter before action, what would you all suggest as next steps?

Thanks!

[atticus]

I would advise a reply, giving your reasons for refuting the claim.

Gather all evidence of communication relating to the work that was done, from first contact - all letters, emails, texts, WhatsApp messages etc.

[AcmpRun451]

Thank you for your reply, we have already complied the evidence of communication showing the claimant exercising full control over the works autonomously, and instructing members from his company to come and 'help on a labour free day'

What we find most odd is that there has been no contact in 18 months, and within 3 days of initial contact they have gone straight down the LBA route, however they have still been unable to respond to any of our requests for any documentation etc, and the claimant has masked themselves behind another employees email (despite the communication obviously coming from the main claimant)

The claimant has actually not responded to our most recent request (72 hours ago), which I assume they should be at least seen to attempt to resolve the issue outside of a court. But I do wonder from a personal level if this is just simply a 'power trip', and they will just proceed with making a claim.

Thanks for you advice.

[Pezza54]

I struggle to see that the ex family relative has substantial grounds for a claim. Even a verbal agreement has to have an offer and acceptance and an intention by the parties to form a legal agreement.
The absence of any contact for nearly 18 months after the work was completed has to count against the claimant
Blaming a personal relationship between directors for the lack of a formal agreement is a very weak argument
If your company receives a claim form you should acknowledge service and if you are sent the particulars of claim, draft a defence.
If you want you can post the particulars of claim under this thread, with claim number, names, addresses redacted, for advice about the defence document

[AcmpRun451]

I struggle to see that the ex family relative has substantial grounds for a claim. Even a verbal agreement has to have an offer and acceptance and an intention by the parties to form a legal agreement.
The absence of any contact for nearly 18 months after the work was completed has to count against the claimant
Blaming a personal relationship between directors for the lack of a formal agreement is a very weak argument
If your company receives a claim form you should acknowledge service and if you are sent the particulars of claim, draft a defence.
If you want you can post the particulars of claim under this thread, with claim number, names, addresses redacted, for advice about the defence document

Thank you for your response, it is much appreciated. I will share their particulars should the claimant proceed with this action.

[AcmpRun451]

Hi All,


We have this morning received a response to the contest,

Nature of the Relationship: While we acknowledge the previous personal relationship between xxxx and xxxx we must clarify that any professional services rendered for the fire alarm installations and materials directly purchased were not intended as a gift and certainly not as pro bono work. Our understanding was that these services were provided under a mutual understanding of payment, as agreed upon during discussions between our respective parties. The only ‘gift’ was free labour and sundries materials items that were provided from our company stores, as stated previously. We would appreciate if you could provide any documentation or messages where it is implied that purchased materials and the fire alarm works were considered free.


Documentation Requests: We understand your request for detailed documentation, including a breakdown of materials and associated costs, as well as a contract of works and quotation. A copy of QTE16001 is attached, documented under our ISO filing system, produced at 15:03hrs on 7th November 2022. Additionally, we have attached relevant purchase orders to our suppliers, which can be date and time verified by our CRM system. In return, we Kindly request any evidence or documentation where you have stated in previous communications that the fire alarm and electrical works required intervention from a third party for compliance, despite the Shopping Centre Management Team's prior sign-off all our works.


Payment Obligation: We respectfully disagree with your assertion that services rendered without a formal contractual agreement are considered gratuitous and not subject to payment. It is our understanding that verbal agreements and discussions between parties can constitute a legally binding contract, particularly when services have been performed and materials provided with the expectation of payment.


What would you advise as a reply?

Thanks.

[atticus]

Repeat your rejection of the claim.

Ask for full details of the "discussions between our respective parties": names; dates/times; places these discussions took place; the gist of those discussions; any written communications including email, text, whatsapp etc.

[Pezza54]

OP stated in their first post that there was no quotation
What is document QTE 16001 dated 7.11.2022? It sounds like a quotation
Pro bono normally refers to free legal services provided by a lawyer to members of the public who can't afford to pay for legal services

[AcmpRun451]

Repeat your rejection of the claim.

Ask for full details of the "discussions between our respective parties": names; dates/times; places these discussions took place; the gist of those discussions; any written communications including email, text, whatsapp etc.

Hi, Thanks for your response, there was no quotation or any price provided for the works, and this was never agreed too. As mentioned, the claimant provided his services as a gift, at the time he was in a personal relationship with a director of the defendant's company, It's our understanding that the claimant was residing 'rent-free' at that time, which likely influenced their decision to provide the service without any monetary agreement, however now that relationship has broken down the claimant has attempted to get funds 18 months later.

We are unsure what the QTE16001, is and have requested further clarification to this.