Letter Before Action/Claim against Dormant SPV

[JaeCo]

Hi there, I’m looking for some legal help on a claim. I’ve had a look around online and can’t find the answer.

I need to know where I should send a letter before action? And if it’s possible due to the dormant position of the companies?

The basic background:

• We’re a limited company and were contacted through company ‘X Ltd’ to carry out some work. The work was agreed over email via a quote (payment terms 30 days).
• The amount of work was extended and fee increase agreed over email shortly after. (Total approx. £3000 minus VAT.)
• We carried out the work (drawings for planning submission, which were used and can be seen on the planning portal).
• When we asked for the details of where to send our invoice, we were told to invoice company ‘XM Ltd’ as the SPV for the development project.
• We invoiced the 'XM Ltd' company (same postal address as company 'X Ltd'), late December 2019 and received an email confirming receipt of the invoice after asking in Feb 2020.
• That was the last contact we have – We’ve tried calling but can’t get put through to the accounts, and all emails have been ignored.
• We sent a request for payment, requesting payment by end of March. That was also ignored.
• I don’t think anyone is at the office premises now, due to the lockdown.
• On checking companies house both companies 'X Ltd' and 'XM Ltd' are submitting dormant accounts

Do you think it’s ok to send a letter before action in the current situation? (Coronavirus/Lockdown)

If it is ok, which company should the letter before action be sent to?

Many thanks for any help.

[Celestine]

Historically have both companies submitted trading accounts? Any revenues/profits? Given the email confirmed you were to invoice Company XM ltd - they should be the ones to whom you issue a LBA. The only issue could be if the SPV is a penniless entity on paper against whom you would not be able to enforce payment because they have none. Hence why I ask about their filing history.
Service of LBA by email is acceptable as you have previously communicated in that medium. You could also consider a statutory demand?*
Courts are in chaos currently, we're not entirely sure how claims are proceeding but I checked MCOL yesterday and all seems to be working.....

[JaeCo]

Thanks Celestine.

It looks like company X ltd was incorporated in 2014 and first submitted dormant accounts in 2017 and XM Ltd incorporated in 2019 and only submitted dormant accounts (with the current accountants late). Both have £5,000 in assets. The owner/director of both companies is also the owner of lots of other companies/SPVs. Some have assets of approx £200,000 if that helps.

Do you think that makes a successful claim unlikely?

Understood re. sending email and courts.

Many thanks

[Celestine]

It doesn't make a successful claim impossible but it is very important to make the claim against the right, solvent company. I correct my earlier advice, in that as the debt is less than 5k you cannot issue a Statutory Demand. As you've had communication with 'both' companies and have a clear email trail, I would think you have a better position to pursue the company founded in 2014. When you come to drafting your claim, this dynamic will need careful setting out.*

[JaeCo]

Many thanks. I appreciate the help.