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Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

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  • Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

    Hello Guys,


    I’m not sure if this query is in the right thread so please feel free, if required, to move to an appropriate one. I have changed the names of the parties involved.

    In September 2008, I was invited to attend a meeting with my associate Ms X, to meet her contact about doing some work. We were commissioned by “T8K” to do an evaluation report based on free government funded training offered to East London businesses.

    T8k are an accredited £multi-million international training and innovative company who regularly win government bids. They won their bid from a government agency, contract award nearly £680k. My client is “Mr Y“, Director of “T8K” and lead delivery partner of the other training companies who were involved in the project.

    The report fee was £3k which was offered by Mr Y. No contracts/agreements were ever signed by me or offered by T8k as all of the work was conducted in good faith and was accepted by T8k, initially in good faith.

    Myself and Ms X were meant to work on the project jointly. My role doing the research including liaising with relevant parties, interviewing, phone calls and collation. Ms X putting the information together in a report format and presenting it to T8k. The £3k fee would be split between us with the report submission date Thursday 30th October 2008.

    After the first meeting ended, Ms X informed me that she did not wish to liaise directly with Mr Y as she didn’t want any contact with him. I saw this as unusual as she still wanted his money. I trusted her as we’d had previously worked together with no problems.

    From this, Ms X decided that I should have full and main contact with Mr Y. I didn’t want to let them both down, so I agreed to this. I then started to receive contact details of all parties involved in the project from Ms X, Mr Y and other T8K staff. I also received toolkits, vital statistical information (which I received after the report deadline from T8k) to which I had to start on and complete on my own.


    Some of the information was received late and I had to chase up contacts to arrange the phone interviews with them.


    Mr Y saw that I was doing the work alone and kept asking me why Ms X was not supporting me. I didn’t want to tell him the truth as I thought that this would jeopardise the work and that we wouldn’t be paid.

    I told him I was committed to completing this as long as I got his feedback on my progress.


    In a conversation we had, he asked me if I had an arrangement with Ms X about the fee. I said Yes. Just as I was about to tell him the details, he said he didn’t want to know and that he would pay the money to me directly and that I should then share it with Ms X. I wanted to disagree but he insisted as he said that I was doing all of the work with no help.


    I wasn’t sure how Ms X would take this, but I let her know the change in the payment terms straight away. She didn’t seem bothered about it, not to my face anyway. If there were any rumblings between them, I didn’t want to get involved. I just wanted to uphold my commitment to finish the work to the best of my abilities and submit it.


    With no support from Ms X, I went to two sources for help. One was someone who was doing her own very similar report to the same gov agency. Mr Y wanted me to get the report from her and copy it. I refused to do so and told him this.
    .
    My other contact was a lifesaver and went through my report page by page telling me what amendments were needed, how they should be done, etc.

    Mr Y was getting worried and in November 2008 he called a meeting between myself, Ms X and also brought in his work colleague who was a bid writer (who also ran his own consultancy). Mr Y wanted him to rewrite the whole report, present it to the gov agency (T8K’s client) and credit my name on the report.

    Again, in this meeting the report’s amendments were not discussed. Even the bid writer queried the reason for this. Mr Y just wanted to meet there to have a few drinks and every meeting we had was held at the bar in that restaurant even though I suggested we meet elsewhere.

    Ms X could see the change in Mr Y’s behaviour towards me was becoming negative and that was the only time she showed any concern to me.

    Mr Y also wanted me to pay for his colleague to do this work from my own pocket. I declined this offer as it sounded fraudulent. I told him I would complete it as I had originally been commissioned to do so.

    From that happened, I sensed that Mr Y wanted to clawback the money that he originally offered me and/or I end up doing the work for free.

    When I completed the work (the second time), I didn’t have anyone to show it to and the second deadline was near. I decided to send it direct to the client as at least then it would be in their hands and I hoped I would get the feedback I’d been asking for from Mr Y since October 2008.

    On the 19th December 2008, the gov agency did go over the report and gave a very direct constructive feedback. It was exactly what I need to see that was totally shortcoming from Mr Y.

    However this feedback was sent to Mr Y and it was in his reply to his client that he stated underpaying me or not paying me at all. He never mentioned this to me directly. I only saw this information when he forwarded to me a chain of emails and he stating that I had breached my contract that I must never directly contact the client again and that I had damaged his reputation with the client.

    All of this came about because he did not want to give feedback on my report when I continually asked him for it.

    Mr Y’s attitude towards me changed and he became extremely aggressive with me for doing this. He was behind with reaching his financial targets and was only worried about the business’s reputation. His behaviour and comments were demeaning and slanderous and I believe he may even have contravened his own Equal Opportunities policy that he submitted in his gov bid.

    Two amendments to the report were conducted (originally 30th October 2008, December 2008 and Wednesday 28th January 2009) and each time, in his opinion he stated it was not up to standard and yet he did not want to say exactly how it could be improved.

    I never received any help or support from Ms X and yet when the correspondence was conducted between myself and Mr Y, she was either cc’d in emails or had the copy letters sent to her. She knew and could see exactly what was going on and never once helped or even offered to help me.

    The feedback from the gov agency had motivated me to work on and improve the report even more, and I did this using it my guideline.

    Upon seeing the last amendment sent Wednesday 28th Jan 2009, Mr Y said that the improvement was significant.

    He wanted a meeting between us and at our last meeting on Thursday 29th January 2009, he took great delight in showing me the areas for improvement and then changed his mind about my doing any further work.

    He said he wanted to put a line under it all, that he would only pay me £500.00 non-negotiable and that I must change the wording of the invoice and send it through to his office for payment.

    It was the first time he had gone through it like that since my requests in October 2008.

    Again, the meeting was held at the same restaurant (studio based near Ms X’s office) and the client ordered drinks for the both us (beer for him and tea for me) that came to £10.30 that I ended up paying as he walked out without settling the bill. I have the receipt.
     



    To summarise, the situation has progressed to the point where:
    1. Quote/Invoice £3k Thursday 30th October 2008 is still outstanding as at today‘s date.
    2. I have proof in an email hardcopy dated December 2008, Mr Y stated to his client (gov agency) that he would only pay me a small amount or not pay me at all upon completing the report.
    3. Continual requests for payment are being ignored which included reminder letter, LBA, involvement of a DCA and an online legal help/Solicitor’s intervention - to no avail.
    4. Continual requests for feedback on the report are not forthcoming with Mr Y sidestepping the requests.
    5. Slanderous comments being made to me where Mr Y keeps stating that I have damaged the reputation of his business.
    6. Mr Y wants me to still complete the report from scratch but does not want to pay for the work I have done.
    7. My report is still with Mr Y.
    Throughout this whole project I have been unsupported, harassed and treated dreadfully by both sides. Mr Y turned out to be the biggest and yet worst client I have ever worked with.

    He spouts on about reputation and yet wants to take advantage of the fact that I am a micro-business (sole trader).

    To top it off I have only been offered £500.00 payment for at least three months work where the original offer is £3,000.00. He also wanted me to submit the amended price as Training Research Report and not as a Final Evaluation Report.

    Mr Y is only now mentioning to pay £500.00 as a “goodwill gesture” in his last letter (August 2009) as he can see that I am serious about recovering the full fee.
     
    I believe that I have to take this to the small claims court. I have paperwork to support my claim and just want some justice/guidance with this.

    At times I really feel sickened just thinking about this and just want to accept the reduced fee. However, I know that that is exactly what Mr Y wants and by constantly making negative comments he hopes that it will chip away at my self-esteem and that I'll slide to the floor in a heap.

    Another side of me says "Girl, drag him to the 'cleaners' and leave him lying there naked!!"


    Guys, can you help me at all with this situation?
     
    Regards,
    AdvS1.
    Last edited by AdvS1; 15th September 2009, 20:04:PM.

  • #2
    Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

    Another side of me says "Girl, drag him to the 'cleaners' and leave him lying there naked!!"


    I'm with you.

    you have evidence the fee was to be £3k, you completed the work as requested

    re this part

    he stating that I had breached my contract that I must never directly contact the client again and that I had damaged his reputation with the client.


    Did you have a contract ?
    #staysafestayhome

    Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

    Received a Court Claim? Read >>>>> First Steps

    Comment


    • #3
      Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

      Hi Amethyst,

      Regarding accepting the work and being paid for it = yes.

      Was a contract/agreement given to me for signing prior to starting the work = no.

      There was never any mention that he was the only person that I must have direct contact with in completeing the work.


      Regards,
      AdvS1

      Comment


      • #4
        Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

        No worries then. The £3k wasn't on successful completion or on them winning the contract (if thats how it works) ? It was a flat pre agreed fee for researching and writing the report ?

        If there is a reason the fee is being witheld such as due to substandard work that would need to be explained and justified. With your attempts at gaining some feedback from him I don't think he'd have much to stand on there.

        Add your debt collection, solicitors and the cup of tea/beer he stiffed you for too.
        #staysafestayhome

        Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

        Received a Court Claim? Read >>>>> First Steps

        Comment


        • #5
          Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

          Thanks Amethyst.
          Re: your comment "It was a flat pre agreed fee for researching and writing the report ?"

          Yes. Mutually agreed.


          From what I know:

          * T8K were awarded the contract for they had stated in their bid/proposal to their client that they would submit an independent final evaluation report = £3k already budgeted within the total award of £680k

          * That is where I came in to fill the jigsaw gap by producing the independent evaluation report

          * He keeps saying that their client (gov agency) is threatening to clawback the award because the report was not given to them

          * I submitted it three times. It is up to T8K to fulfill this action, but they want to hold onto the report. Even now I don't know what they've done with it.

          If you need to see any letters/proof, I can send them?


          Also another thing that bugs me.......if my work was meant to be so sub-standard, why is he harranging me to complete it (yet again).

          Why not bring in someone else, which he kept threatening to do anyway.


          It doesn't make sense?


          Also re: "Add your debt collection, solicitors and the cup of tea/beer he stiffed you for too".

          Can you give some content guidance in completing the content of n1 form?
          Will I need to state any laws or anything?

          Their replies to me have stated that they want to defend this to the hilt.


          Thanks,
          AdvS1.

          Comment


          • #6
            Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

            Do not forget to add interest pursuant to Late Payment of Commercial Debts (Interest) Act 1998 and in addition, you may also claim compensation for the costs of debt collection on late payments under s.5A of the Act.

            You did have a contract, regardless of whether or not it was written. An implied contract existed and you will have proof of this due to the numerous meetings you attended, amendments you made and the fact that the client still wants the work to be done.

            Comment


            • #7
              Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

              Have to say the Mrs X bit confuses me, and cant help thinking shes pretty involved in the fee 'anomolies'.

              Other than that all seems pretty straightforward, he contracted you to do some work for a set agreed fee, you did it, he refused to pay you the amount agreed..... sue him same basis as other one, unpaid invoice.
              #staysafestayhome

              Any support I provide is offered without liability, if you are unsure please seek professional legal guidance.

              Received a Court Claim? Read >>>>> First Steps

              Comment


              • #8
                Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

                Originally posted by AdvS1 View Post
                Thanks Amethyst.
                Re: your comment "It was a flat pre agreed fee for researching and writing the report ?"

                Yes. Mutually agreed.


                From what I know:

                * T8K were awarded the contract for they had stated in their bid/proposal to their client that they would submit an independent final evaluation report = £3k already budgeted within the total award of £680k

                * That is where I came in to fill the jigsaw gap by producing the independent evaluation report

                * He keeps saying that their client (gov agency) is threatening to clawback the award because the report was not given to them

                * I submitted it three times. It is up to T8K to fulfill this action, but they want to hold onto the report. Even now I don't know what they've done with it.

                If you need to see any letters/proof, I can send them?


                Also another thing that bugs me.......if my work was meant to be so sub-standard, why is he harranging me to complete it (yet again).

                Why not bring in someone else, which he kept threatening to do anyway.


                It doesn't make sense?


                Also re: "Add your debt collection, solicitors and the cup of tea/beer he stiffed you for too".

                Can you give some content guidance in completing the content of n1 form?
                Will I need to state any laws or anything?

                Their replies to me have stated that they want to defend this to the hilt.


                Thanks,
                AdvS1.
                No they won't - they will fold like a cheap suit.

                Your N1 is going to be very simple. Have you already served them with a recent Letter Before Action?

                If you have done so, then you can move to file the claim at once, if not, send them a final demand giving them seven days to pay in full.

                Dear Sirs

                Unpaid Invoice Number ( ) dated ( )

                Despite our previous requests for payment, the above invoice remains unpaid.

                The invoiced amount is £( ) and interest pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 amounts to £( ) as at today's date. Interest continues at (daily rate) per day.

                This letter is a FINAL DEMAND for payment of the invoiced amount and interest.

                If the total sum due to us has not been paid within seven days, Court proceedings will be issued for recovery without further notice to you.

                If proceedings are issued, the claim will be for the invoiced amount, continuing interest and costs.

                Yours faithfully

                Comment


                • #9
                  Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

                  Hi Cetelco,

                  Thank you very much for your reply :tinysmile_grin_t:. I appreciate that.

                  Amethyst, thank you too.

                  I believe you are right about Ms X. I found out that she and Mr Y "talk" although I never thought she would show her hand to me like this.

                  I did send an LBA for £3k to Mr Y dated Monday 20th July 2009 and received a reply from him dated 11th August 2009 where he mentioned the offer of £500.00


                  Cetelco: the info you already stated above, shall I include it within the body of the n1 form?

                  Also, I sent a letter to Ms X in July or August calling her to be a witness at the court.
                  She never replied. No guessing why!

                  Shall I state this or call Ms X as a witness on the n1 form, even if it's just to shake her up? :tung:


                  Regards,
                  AdvS1.

                  Comment


                  • #10
                    Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

                    You are a little early for witnesses. If you sent an LBA in July then file your claim as soon as possible. Your particulars should be simple to draft. Have a go yourself, post them here and we can advise further.

                    Comment


                    • #11
                      Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

                      Ok, will post it up tomorrow.

                      Thanks again.

                      Have a lovely night!


                      Regards,
                      AdvS1.

                      Comment


                      • #12
                        Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

                        Hi Guys,


                        I hope you are all well today?

                        I want to make sure I have everything covered. Please see my content’s draft to be included in the N1 Claim form. I welcome your feedback?

                        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

                        BRIEF DETAILS OF CLAIM

                        The Claimant is claiming monies due for research and evaluation reporting services which were supplied and accepted by the Defendant and remains unpaid. The Claimant seeks remedy by payment of monies owed.

                        VALUE

                        £3,000.00 plus interest as set out in the Particulars of Claim
                        £10.30 drinks ordered and left unpaid by the Defendant
                        £20.70 Solicitor’s letter cost
                        £70.00 Late payment compensation for reasonable debt costs

                        PARTICULARS OF CLAIM

                        1. The Claimant’s claim is for payment of an invoice sum £3,000.00 (please see attached marked “POC1” ) owed in respect of research and evaluation reporting services;
                        Drinks ordered by the Defendant in a restaurant where he left unpaid sum £10.30;
                        Solicitor’s letter sent to the Defendant requesting payment on my behalf cost £20.70 .

                        2. The Claimant sent the invoice to the Defendant on Thursday 30th October 2008 which was agreed and accepted by the Defendant for payment.

                        3. The Claimant has been reasonable in giving the Defendant several opportunities to make payment. Despite numerous written requests made by the Claimant to the Defendant, the Defendant has failed to pay the said sum and remains indebted to the Claimant.

                        Please see attached marked:
                        POC2 ” = Unpaid Invoice FVY/T8K/OLY01 Debt Reminder Letter
                        “ POC3 ” = Reply letter Wednesday 8th April 2009 report feedback request for the last time
                        POC4 ” = Notice of Intended Court Proceedings/Letter Before Action

                        4. The Claimant claims interest pursuant to Late Payment of Commercial Debts (Interest) Act 1998 at the reference rate of 5% [reference rate period 1st July 2008 to 31st December 2008] + 8% statutory interest [from 27th November 2008 to 16th September 2009] as amended and supplemented by the Late Payment of Commercial Debts Regulations 2002.


                        The Claimant is claiming from the Defendant

                        1. The sum of £3,313.07 including interest accruing under s.69 of the County Court Act 1984 at the rate of 13% per year from Thursday 27th November 2008 to dateThursday 16th September 2009 (293 days) being £313.07 at a daily rate of £1.07 and

                        Interest as set out above from 17th September 2009 until judgement or earlier payment at the daily rate of £1.07; alternatively at such rate and for such period as the Court thinks fit.

                        2. Late Payment Compensation of £70.00 under s.5A of the Late Payment of Commercial Debts (Interest) Act 1998.

                        3. Drinks ordered by and left unpaid by the Defendant sum £10.30

                        4. Solicitor’s letter cost £20.70

                        5. The Claimant asks the Court to enter judgement in their favour for £3,101.00 plus interest, totalling £3,414.07
                         

                        Statement of Truth
                        I believe that the facts stated in these Particulars of Claim are true.
                        Dated this 16th
                        day of September 2009.


                        Amount claimed £3,393.37
                        Court Fee £0.00
                        Solicitor’s costs £20.70
                        Total £3,414.07

                        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

                        Questions:

                        1. Mr Ys office is based in Essex where I addressed and sent all my correspondence. The last letter came from his head office in Leicestershire and was signed by the UK Financial Controller. Which address do I put on the claim form?

                        2. Have I calculated the interest correctly based on the fee only?

                        3. The Solicitors letter (the copy I have) has not been printed on headed paper and has the words Without prejudice save as to costs in the heading.
                        Shall I also attach that as back-up evidence to the POC too, e.g as POC5

                        4. There weren’t any debt recovery costs. The company worked on a success rate fee basis.
                        Should I still include their paperwork as evidence for payment request?

                        5. I will be completing an EX160 Application for Remission Fee form to hand in with the N1 Claim, therefore the amount for Court Fee should be £0.00 ?


                        Feedback/amendments welcome......thanks!

                        Kind regards,
                        AdvS1

                        Comment


                        • #13
                          Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

                          Remember you are suing a company, not an individual so make sure the claim is filed against the correct company name at their registered office.

                          With regard to interest, you are claiming pursuant to the Late Payment of Commercial Debts (Interest) Act 1998 at a rate of 13% not the County Court Act 1984.

                          Why do you think that the Defendants must pay for the drinks ordered? You may add reasonable costs, sums that you can justify for stationery, postage, telephone calls and inconvenience and I would be tempted to remove the details of the drinks order and make up the £10.30 elsewhere.

                          With regard to the costs for chasing the debt, or lack thereof, include this documentation as proof that you have attempted to recover the sum owing but have needed to resort to litigation as the customer has failed to pay.

                          Leave the Court Fee field blank if you intend to apply for a fee remission.

                          Finally, the brief details of claim should be just that, brief. Something like this;

                          Payment of unpaid invoice for services rendered by the claimant to the defendant to the defendants order full particulars of which have been supplied by the claimant to the defendant and invoiced as follows:-

                          Invoice No. (number) Dated (date) £3000

                          Comment


                          • #14
                            Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

                            Great.

                            Thank you, Cetelco.
                            I'll make the changes.


                            Regards,
                            AdvS1.

                            Comment


                            • #15
                              Re: Debt Recovery from Training Organisation (“T8k Advantage R Us Limited”)

                              H Everyone,

                              I just wanted to update you.

                              This afternoon I handed in my n1 claim form at the local court as well as the remission form. I timed it well as there was no-one else there queuing up.

                              I mentioned to the Receptionist/Cashier about how last time I was there, even though I asked about it, I wasn't given any kind of receipt to show acknowledgement of their receiving my first claim.

                              The Cashier was very approachable and promptly stamped my form. The stamp showed the name of the court, today’s date and the counter account number.

                              I asked for my previous claim form to be stamped, but unfortunately she said she couldn’t back-date it.

                              Apparently there is a back-log of forms being dealt with so I was advised to call them later next week and ask for the Issues Section where I can query any updates with my claims.

                              Roll on next week!!

                              Thanks again to Amethyst and Cetelco for your guidance.

                              I wish you a great evening and weekend!
                               

                              Warmly,
                              AdvS1 x
                               

                              Comment

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