Builder owes us big money but refers to ill health deferring repayment indefinitely

[Velant]

Hello,

We’re trying to get money back from our builder, to whom we paid a lot of money for material deposits – materials undelivered, money not returned.

At some point he stopped responding to our calls/texts ignoring us for couple weeks (mid February-early March, 2021) and we hired a private mediator who wrote an LBC (=LBA) to the builder giving him 14 days to return us money or we proceed to small claim court.

The builder responded the same day referring to ill health but promising to sort things within 4 weeks. Since then correspondence between our mediator and the builder was taken over by builder’s wife, who keeps saying that he’s unwell, attends hospital for regular appointments etc. and not being in sufficient health to sort out the matter. Yet, we have a number of indications that he is not that unwell and most likely just plays for time.

To cut the long story short, we feel it may be premature to go to court at this stage. My question is – is it worth trying to get more evidence from the builder – like doctor’s notes, hospital letters – describing how serious his condition is? Anything else?

Thanks a lot for your thoughts

[jaguarsuk]

You’re very kind to be allowing them time to look after health conditions, but kicking the can down the road isn’t going to solve anything.

I think you probably need to write back letting them know that you can’t put this off indefinitely, that you have been accommodating of the ill health and that all they are doing is pushing you towards having to claim in court.

State you don’t want to do that, but you have to get your build sorted and need that money to do so. The court will not allow them to delay matters due to ill health and the stress of dealing with the formality of a claim process would not make things better.

Then simply ask them to pay back what is owed.

If they fob you off or don’t do it, I’m afraid you’ll have to issue a Letter Before Action and if that doesn’t do the trick file a claim.

[islandgirl]

I think I would make that "nice" letter also a letter before action giving 14 days for payment in full or you will launch court proceedings.

[Velant]

If they fob you off or don’t do it, I’m afraid you’ll have to issue a Letter Before Action and if that doesn’t do the trick file a claim.

Many thanks for your helpful feedback, jaguarsuk!
The LBA was already sent to them in mid March, and there were 2 rounds of correspondence after the LBA.

The claim was postponed twice by us since then (for a week each time) in response to them claiming ill health and needing more time but giving no deadline.

Now that I know that the court should not allow them to delay matters due to ill health, we'll send them final reminder giving the points you mentioned and asking to sort the repayment within two weeks. We also thinking of making them an offer in this final letter to repay only 80% of the debt to close the matter if done within 1 week - to avoid hassle and delay of sorting the issue through court.

[ostell]

If you make the offer don't forget the "Without prejudice save as to costs"

[Velant]

If you make the offer don't forget the "Without prejudice save as to costs"

Thanks Ostell will do. Our builder has also used this subject in his latest email.

[ostell]

A lot of people use the phrasing when it's not really applicable. I was in a legal argument with someone and he used WPSAC on every letter. I didn't and when I sent a letter making an offer I did include it and he then took it seriously, ie the money was there within 2 days. It's really meant to be used when you are making an offer so that it can't be used against you later.

[Velant]

It's really meant to be used when you are making an offer so that it can't be used against you later.

Sorry can you explain what you mean by "so that it can't be used against you later." In which sense?

[ostell]

As the case progresses and it looks like it might cost him a lot more he may come up with "But the claimant offered to settle for £ xxxx".

If the judgement is for more than you offered then when costs are being determined you ask fo all your costs as the case could have been withdrawn earlier

[Velant]

As the case progresses and it looks like it might cost him a lot more he may come up with "But the claimant offered to settle for £ xxxx".

If the judgement is for more than you offered then when costs are being determined you ask fo all your costs as the case could have been withdrawn earlier

All clear thanks

[ostell]

You have already sent several LBA so the builder has been warned. Start you claim online. The receipt of the claim form from Northampton might just clear his brain. The longer you give him the more chance he has to squirrel away any cash or security he has.

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