Reclaiming goods unpaid for

[MarkyUK]

Hi all,

 

My first post here is on behalf of a friend of mine who's in a situation. I hope I'm in the right place for posting this question....

 

 

My friend Mr A. is a sole trader (heating engineer) who has a few months back been contracted by a Ltd company (b) who specialises in commercial central heating installations. Mr A. has installed a new boiler on a commercial premises shop © on behalf of this company he is contracted by. (The shop is company b's customer).

 

It has since transpired that the company (b) is in a state of liquidation. It has just come to light that the company (b) was already in a state of liquidation when they approached Mr A. asking him to do the work! They are continuing to try to gain new business while in a state of forced liquidation.

 

The company has failed to pay Mr A. any money owed despite repeated requests.

 

The end customer - shop © has made full payment for the work to company (b).

 

There are no written contracts to speak of, only verbal agreements and maybe one or two vague emails.

 

 

Q) What is Mr A's legal rights in being able to reclaim the boiler, ie, if the shop allowed him onto their premises could he legally remove from wall and regain possession?

 

Q) Isn't technically the boiler still owed by Mr A as it has never been paid for?

 

 

Any help really appreciated on this!

 

Many thanks

 

MarkyUK

[SuperVillain]

Is company B actually in liquidation or is it administration?

 

I would find out who's dealing with their insolvency - should be on Companies House - and ask them for further information about the current state of affairs as Mr A is a creditor of company B.

 

Then you'll have a better idea of what to do next.

[SuperVillain]

And to help answer to both of your questions - what's in the service contract between A and B i.e. is there a retention of title clause?

[steampowered]

Mr. A would only have a right to reclaim the boiler if there was a "retention of title" clause in his contract with B Ltd. As there was no written contract, under Sale of Goods Act ownership of the boiler passed to B Ltd on delivery. This means Mr. A is just an unsecured creditor.

[MarkyUK]

Thanks all for your replies.....

 

Incidentaly the boiler was installed direct to the end user. The middle company never actually "possessed" it as such. There were no contracts, only verbal terms of agreement.

 

 

Right, to confirm, the middle company was in an actual state of liquidation when the order was placed, with appointed liquidators.

 

My friend today rang the actual liquidators (government liquidator with .gov.uk email address). The person he spoke with said the following....(summarised)

 

- As the company was in a state of liquidation at the time that the order was made it was in effect not an order between the company and him. An act of fraud has been commited.

 

- He said that the boiler still actually belonged to my friend.

 

(also said basically that the director of the company is impossible to contact).

 

I am in no means trying to suggest that what he said is legally accurate.

 

My friend is at the moment planning to return to the shop where it was fitted and remove it. He said that he needed to return to adjust something but will use this invited access time to remove the boiler. He discussed this with the liquidator who said that this was within his rights.

 

I'm not so sure this is the right way to go. He has contacted the end user company several times but are unwilling to discuss.

 

Could the way in which payment has been made to the middle company be a factor...IE if money was transferred to his personal account rather than business account? (Unconfirmed)

 

 

Thanks again,

 

Mark

[SuperVillain]

I would be extremely reluctant about just retuning to the shop and removing the boiler.

 

Particularly as the end user has paid for it, despite that money not reaching your friend.