Compensation Claim

[Craig2010]

Hi

New to the forum, so not to sure if posting in the right place.

Need some help with a judgement that has been awarded to my dad by the court.

Oct 2011 my dad had and accident, a cleaning firm was to blame for the accident and the solicitors were able to win my dad a compensation award through the courts for £3300. Unfortunatly no payment has been recieved, recently the company JFM cleaning went into liqudation and i attended the meeting of creditors. THe company books showed a balance of £10,000 with £6000 owed to secured creditors and then the liqudators would be taking their cut which was roughly £4000, the debt on the company left about £30k included in this was the tax HMRC, my dad and other unsecured creditors.The director was a complete arsehole and in the meeting i asked him why his insurance had not paid my dad if he was insured, he answered no comment. He also turned up in a brand new mercedes and still had a jacket with his companys logo on it that he wore to attend.
Following this meeting the liqudators have now been able to provide me with his insurance details and his policy number.....
Can anyone tell me what my next step should be in trying to get this award for my father, as i said the accident was in 2011 and my father is 65 and since the accident has not been a well man and suffered pain due to th accident his is not the same man and i really feel this should have been paid out, i can only guess this director of JFM cleaning never informed his insurance at the begining he also ignored numerous court hearings. Now i have the insurance details i am looking for the next step.

[enquirer]

Re: Compensation Claim

Delete the name of the firm from your post.

On the figures that you have given, it looks unlikely that your father will be receiving anything. However, if it could be shown that the company had been trading fraudulently, then it might be possible to move against the Directors own assets.

Seek professional legal advice.

[Craig2010]

Re: Compensation Claim

The solcitors actually won the award, but obvioulsy he did not give his insurance details up- should his insurance now not be liable to pay... I have come on her for the advice thinking legal advice can be given

[des8]

Re: Compensation Claim

In your first post you say you have been provided with the cleaner's ins. details.
Were these the details of his Public Liability policy?
Your father won at court ..... did the cleaners defend the action? were their insurers funding the defence?

If the cleaners actually had liability cover I don't understand why the insurers would not have been involved, and having lost would not have paid your father directly & relatively promptly.

I suspect there may not have been a third party policy in force.
Check with the solicitors who handled your fathers claim if an insurance company was acting for the defence.

[Craig2010]

Re: Compensation Claim

HI Thanks for the reply.
My dad was injured in Oct 2011, he pursued a claim with a solicitors through the courts, from day one the company was unresponsive to the solicitors therefore no insurance was ever established, he replied to one court letter asking for more time to a defence, he never replied again. Then in court my dad was awarded the payment, the solicitors then sent enforcement officers round to the company etc. they could not gain access and then they were informed the company was being wound up, i then with my dad attended the creditors meeting as my dad was a creditor. The liqudators informed us their was basically no money in the business. My question to the director was why have you never informed your insurance about this if you are insured, the liqudators have now been able to establish he was insured during the time the accident happned and have provided insurance and policy details, it is a well known insurance firm. What can we know do?

[Craig2010]

Re: Compensation Claim

The problem seems to be he never informed his insurance from the begining so they have no idea about it all.

[des8]

Re: Compensation Claim

Generally, under Common Law, where a company goes into liquidation, people with a third party claim become
part of the group of general creditors.
HOWEVER under the Third Parties (rights against Insurers )Act 1930 where a company that takes out third party liability insurance and then becomes insolvent, the injured party can proceed directly against the insurance company.
The 1930 Act transfers the insured’s rights under the insurance policy to the third party.

There are problems with the 1930 Act, so it was not quite as straightforward as it sounded.

I know that the law was amended by an Act in 2010
My suggestion would be to return to the original solicitor for advice, before approaching the Insurance company.

If you are unhappy with the advice you receive, by all means feel free to come back here.
Good luck

[Craig2010]

Re: Compensation Claim

Have spoken to Solicitors this is the letter they have now dictated to the insurance, fingers crossed we get resolution.

Dear Sirs

Our Client: ************
Your Insured: ************
Accident Date: ***********

We write with regards to our above named client on whose behalf we are instructed to act in respect of a claim for damages arising out of an accident on the above date.

The background to this matter is that we were instructed on behalf of our client in respect of a claim for damages sustained whist he was riding his bicycle along ******************, when he skidded on grease and fell off.

We attach copy letter of claim dated the ******* 2011 sent to your insured along with their response of the *****May 2012.

Given that your insured was alleging that they believed that responsibility for the accident rested with the company the equipment was hired from, *********, a letter of claim was also sent to this company.

As liability was also disputed by ******* Limited, as per the attached letter from their insurers of the ^***** January 2013, court proceedings were issued on behalf of our client against both Defendants.

As your insured did not respond to our client’s claim, Judgment was entered against your client with reference to the attached Order dated the ***** Aprill 2013 of Deputy District Judge *****. Following this, our client’s claim was transferred to ***** County Court where a disposal hearing took place on the ^****h August 2013 and Judgment was entered against your client on behalf of the Claimant as set out in the Order of Deputy District Judge Watson dated the 29^th August 2013, enclosed, for damages and costs to be paid to our client.

Your insured attempted on two occasions to have Judgment set aside, as to which they were unsuccessful and two further Judgments were entered against your insured dated the ^** November 2013 (Deputy District Judge ***) and the ^****h January 2014 (District Judge *****).


As no response was received from your insured, we thereafter instigated enforcement proceedings out of Oldham District Registry, where we have also incurred the issue fee cost of £60.00 and that attached fee of £72.00 from a company, *************, we instructed to enforce the Judgment.

We are aware of course that your insured has now gone into liquidation and that ******** are the insolvency practitioners dealing with the same. Indeed, it is from ********** (insolvency practitioners) that we finally obtained your details as the insurers for *************** Limited, under policy number, ********, from the ^*** May 2011 to ^*** May 2012, ie that you were the insurers in place at the time of our client’s accident.

We therefore now look forward to receiving confirmation that you will forward the following cheques:-

1. A cheque made payable to our client ****** in respect of damages of £3,307.50


We look forward to hearing from you as soon as possible in order to resolve this outstanding matter.

Yours faithfully

[des8]

Re: Compensation Claim

It should work, but probably won't be instantaneous.
The insurers will carry out their own checks.
I haven't been involved with Liability insurance since the mid 1970s, but I have a vague recollection that under the old 1930 Act the injured party, in these sorts of circumstances, would also have to proceed against the insurers in a separate action. I believe the new act changes that, and takes into account changes in insolvency law.

[Craig2010]

Re: Compensation Claim

I just read the .
The Third Parties (Rights against Insurers) Act 2010

Bit confusing for me, i will sit down later and read it more carefully, try to get my head around this. Thanks. If your knowledge on this is greater then mine try and explain what this act means in my circumstances.
thanks again

[des8]

Re: Compensation Claim

Following your last post I thought I ought perhaps do some revision

First thing up is that the 2010 Act hasn't yet been implemented, and so, if it comes to the crunch, it's the 1930 Act which applies.
You have overcome the first problem with that Act, in that you already have won against the insured, i.e. the insured's liability has been established by judgement.
The difficulty however is that if the insurers become difficult and stand on their rights, they can repudiate the claim if eg there was a material error or non disclosure on the proposal form, or if the insured had to give notice of a claim within a certain time limit.
It could all depend on who the insurers are, and whether or not they regard themselves as having a moral duty. You said they were well known.... now a days that seems to mean they are cheapest and so have large share of market, not that they entertain claims sympathetically
Wouldn't like to get your hopes up too high, as you might have a fight on your hands to get your father his dues.

[Craig2010]

Re: Compensation Claim

Sounds like this could be problematic if they get funny. The insurance is zurich so they are pretty well known? I will let you know what the response is. Thanks for the help and taking time to read my post and research the problem .

[des8]

Re: Compensation Claim

You're welcome
The Zurich used to have a good reputation ..... but I'm speaking of many years ago.
Don't know about their current standing.