Processes surrounding an application for judgement and defending a counter-claim

[mk_ll]

Hello,

 

I used to work for a company in a position as Director and I (foolishly) loaned the company a large sum of money. I am no longer a Director and have made many attempts to negotiate a repayment plan, but the Company refuses to agree to one, merely offering a monthly payment without supporting evidence that this is all it can afford to pay.

 

I've therefore made a request for judgement and they've put in a defence and counter-claim. Naturally, they now perceive me as utterly incompetent and claim they've paid out thousands in compensation.

 

I am about to file my allocation form but have some questions:

 

1. What's the process for requesting summary judgement (CPR 24) on the original claim? Do I need to send the request plus evidence to the Company 7 days prior to making the request to the Court?

 

2. What's the process for applying to have the counter-claim struck out? The Company has refused to send me any details beyond the vague set of figures they put forward in a claim. I.e. if they'd paid out X for Y, they'd have an invoice. They've never explained any item to me, made such a claim prior to my request for judgement, nor have they asked for me to pay the money. I believe I can file under CPR 3.4, but again, do I need to give the Company notice?

 

3. Can I file for summary judgement or a strike out claim prior to submitting my allocation form? If I file a defence to the counter-claim, this seems to suggest I want to defend it but without any specific details on the claim, it's hard to decide if I'm guilty.

 

I have plenty of supporting documentation including e-mails from the Company Directors demonstrating they owe the original money and, if they want to argue the counter-claim, that the claims they have made are false.

 

If you feel there are other avenues I should explore then please do let me know.

 

I look forward to your thoughts.

 

 

mkll

[MARTIN3030]

So can you confirm that you issued a claim and they have acknowledged with the intent to counterclaim ?

Have they submitted a defence ?

[mk_ll]

I issued the original claim for my money, because the Company would not agree a sensible payment plan and I reckon they could afford to pay much of it back quickly, but would prefer to treat me as a "free bank".

 

I have received a defence to the claim and counter-claim from the Court.

 

I met with them and they were unable to explain the counter-claim to me, and I also asked the court for period of deferral on submission of my allocation form so I could see if the matter could be resolved outside of the Court process. I do not believe the Company has any intention of settling outside the Court process and the counter-claim is an attempt to extend the Court process by submitting a fictitious claim.

 

I'm considering summary judgements and strike outs because the Company doesn't have a defence, and doesn't seem able to substantiate their counter-claim, so if a Court agrees then the problem goes away.

[MARTIN3030]

If they have submitted a defence and counterclaim,then the Court is unlikely to give a strike out at this stage.

It may well order a case management/directions hearing.

What is the value of the claim-is it likely to stay in Small claims track ?

[mk_ll]

The value is ~15k, and the counter-claim is 6k. The reason I bring up the strike out discussion is that the CPR 3.4.2 rules suggest that if a claim is without basis, it can be struck out.

 

If the claim has never been particularised; if no paperwork has been provided to demonstrate there was a loss; if the Company has never formally provided me with a request to pay the money/offer a repayment plan; if the claim never existed until I made an application for judgement, then surely I can ask the claim is struck out?

 

Perhaps I'm asking the question, what constitutes a valid claim?

[MARTIN3030]

Yes of course you can seek a strike out.

I am just going from experience here in saying that although you can say there is no cause of action Courts will not give it unless there is good evidence that they are unlikely to be successful in defending.

You have nothing to lose by asking for the claim to be struck out for the reasons that you have given and are aware of.

Given the amounts involved,if it goes to trial then the costs implications need to be very carefully thought out.

Have the other side instructed solicitors ?

[mk_ll]

Hello,

 

Thanks for your thoughts. Could you advise on process? I.e. do I need to submit an allocation form and defence, or can I request the claim is struck out immediately?

 

 

mkll

[MARTIN3030]

Can you say whether allocation forms have already been sent to you ?

[mk_ll]

Can you say whether allocation forms have already been sent to you ?

 

Yes, they have but the company wanted a delay in submission so they need to be in after Christmas. Saying that, the company has since submitted their form.

 

Hence, the cpr rules suggest I can now file for a summary judgement on the claim and strike out of the counter claim. Or do you believe I can do nothing until I file an allocation form? I ask because it seems difficult to fill in an application form for a counter claim that appeared from nowhere and I can not plead guilty to for the reasons listed above.

[mk_ll]

Can you say whether allocation forms have already been sent to you ?

 

Yes, they have but the company wanted a delay in submission so they need to be in after Christmas. Saying that, the company has since submitted their form.

 

Hence, the cpr rules suggest I can now file for a summary judgement on the claim and strike out of the counter claim. Or do you believe I can do nothing until I file an allocation form? I ask because it seems difficult to fill in an application form for a counter claim that appeared from nowhere and I can not plead guilty to for the reasons listed above.