Ltd Building Co-Fraudulent activity-walked off job & Director put funds into own bank account

[ZBanfield]

You don't email the Court to ask for an extension of time, any request to the Court would need a formal application.

 

However, you can agree an extension with the other side of up to 28 days without involving the Court pursuant to CPR 3.8(4).

 

 

Hi Ganymede,

 

Weird, but good news. I sent an email to the court explaining about when they sent me the paperwork and the short deadline and I received a General Form Of Judgement or Order dated 25 Apriil 2016 advising that:

the judge sat and made the following order...

 

" upon reading a letter from the Claimant (myself) it is ordered that

 

1. Time for compliance with paragraph 7 of the Order dated 4 March 2016 is extended to 4pm on 1 July 2016."

 

 

I thought this might help others who have a similar problem.

 

 

So, I spoke to my neighbours and they have done their witness statements too.

 

The hearing is on 8th August 2016.

 

There is one thing I am not clear on - for everyone who has submitted witnesses statements, do they all have to attend the court hearing?

 

Would it be the case that only the witnesses who attend the hearing will have their statements accepted as evidence to support my case?

[ZBanfield]

Hi,

 

I have new evidence that the guy I am taking to court as Director and individual has purposely transferred all his assets into his mother's name; car, house etc so he does not have any assets.

 

Does this mean that if I get a judgement in my favour he will not have to pay anything or can the judge order it to come out of his salary? He has a job earning £30k a year.

 

I would appreciate any insight or advice.

[BazzaS]

Hi,

 

I have new evidence that the guy I am taking to court as Director and individual has purposely transferred all his assets into his mother's name; car, house etc so he does not have any assets.

 

Does this mean that if I get a judgement in my favour he will not have to pay anything or can the judge order it to come out of his salary? He has a job earning £30k a year.

 

I would appreciate any insight or advice.

 

His personal debts : you could seek an attachment of earnings order, to get what is owed paid from his earnings (though he will be entitled to have a minimum level of earnings before the attachment kicks in). This can work if he isn't bankrupt / doesn't make himself bankrupt.

 

Alternatively, if he is now bankrupt as a result of any judgement, (but, importantly: wouldn't have been if he hadn't had transferred the assets at an undervalue) : if he is made bankrupt the Trustee in Bankruptcy (TiB) can look at his transfer of assets, in the 5 years preceding bankruptcy, and see if they were "at an undervalue".

 

So, if his house was worth £200k, and he sold it to his Mum for £200k, and he has since spent that money on wine, women and song: the money has gone, and the house is rightfully his Mum's property.

If it was worth £200k and he sold it for £20, AND is now bankrupt as a result, the TiB can get the transaction reversed. His Mum gets back her £20, but the house goes back into the bankrupt's estate .....

He has to have become bankrupt as a result of the transfer at an undervalue (section 339, Insolvency Act 1986)

http://www.legislation.gov.uk/ukpga/1986/45/section/339

 

The Land Registry should show who now owns the property, and how much was paid for it. You could ask an estate agent how much the property is likely valued at to get an idea of this was "at an undervalue".If it was worth £200k but got sold for e,g, £195k "for a quick sale", then this likely wouldn't be "a consideration the value of which, in money or money’s worth, is significantly less than the value, in money or money’s worth, of the consideration provided", but £200k as a gift, or for £20 would be "at an undervalue".

 

The company?? is it solvent and trading?. If insolvent, and assets were transferred at an undervalue (e.g. his Mum got a company car worth £15k for £1!), then this could be reversed on application to a court by a liquidator, if the transactions were in the 2 years preceding the insolvency.

 

Both "transactions at an undervalue" rely on insolvency (the company being in insolvent liquidation / him being bankrupt), and on the insolvency practitioner taking action on behalf of any/all creditors, rather than you taking the action on your own behalf.

[steampowered]

Hello ZBanfield, I'm sorry that I missed some of your earlier questions. If you want my input on something you are always welcome to give me a prod by clicking on my name and sending a private message, or hitting the triangle under your post which flags it for site team attention.

 

The input given by BazzaS re: transactions at an undervalue is spot on. I would just add that, if you get an order against the individual rather than against the company, a 'trustee in bankruptcy' would be appointed rather than a 'liquidator', as liquidators are for companies.

 

The other point to mention is that there is another part of the Insolvency Act which can be used in a situation where assets are being put of reach to frustrate enforcement. Have a read of http://www.legislation.gov.uk/ukpga/1986/45/section/423 which is self-explanatory. The key point is that an order reversing the transaction can be applied for under this part of the legislationby creditors (such as yourself) directly, without needing to go through the prior step of making the debtor bankrupt and having a trustee appointed. You would need to prove that the transaction was made for significantly less than what the asset is worth and that the transaction was done for the purpose of putting assets out of reach of creditors.

 

Although a simple attachment of earnings order may be an easier way of achieving the same thing ...

[BazzaS]

The input given by BazzaS re: transactions at an undervalue is spot on. I would just add that, if you get an order against the individual rather than against the company, a 'trustee in bankruptcy' would be appointed rather than a 'liquidator', as liquidators are for companies.

 

That would be why I made reference to a 'Trustee in Bankruptcy' for the personal side, and 'liquidator' for the company aspect, and then when referring to them both, used the more generic "insolvency practitioner" to cover both, rather than incorrectly calling them both "liquidator".

 

: if he is made bankrupt the Trustee in Bankruptcy (TiB) can look at his transfer of assets, in the 5 years preceding bankruptcy, and see if they were "at an undervalue".

 

........

 

If it was worth £200k and he sold it for £20, AND is now bankrupt as a result, the TiB can get the transaction reversed. His Mum gets back her £20, but the house goes back into the bankrupt's estate .....

......

 

 

The company?? is it solvent and trading?. If insolvent, and assets were transferred at an undervalue (e.g. his Mum got a company car worth £15k for £1!), then this could be reversed on application to a court by a liquidator, if the transactions were in the 2 years preceding the insolvency.

 

Both "transactions at an undervalue" rely on insolvency (the company being in insolvent liquidation / him being bankrupt), and on the insolvency practitioner taking action on behalf of any/all creditors, rather than you taking the action on your own behalf.

[ZBanfield]

His personal debts : you could seek an attachment of earnings order, to get what is owed paid from his earnings (though he will be entitled to have a minimum level of earnings before the attachment kicks in). This can work if he isn't bankrupt / doesn't make himself bankrupt.

 

Alternatively, if he is now bankrupt as a result of any judgement, (but, importantly: wouldn't have been if he hadn't had transferred the assets at an undervalue) : if he is made bankrupt the Trustee in Bankruptcy (TiB) can look at his transfer of assets, in the 5 years preceding bankruptcy, and see if they were "at an undervalue".

 

So, if his house was worth £200k, and he sold it to his Mum for £200k, and he has since spent that money on wine, women and song: the money has gone, and the house is rightfully his Mum's property.

If it was worth £200k and he sold it for £20, AND is now bankrupt as a result, the TiB can get the transaction reversed. His Mum gets back her £20, but the house goes back into the bankrupt's estate .....

He has to have become bankrupt as a result of the transfer at an undervalue (section 339, Insolvency Act 1986)

http://www.legislation.gov.uk/ukpga/1986/45/section/339

 

The Land Registry should show who now owns the property, and how much was paid for it. You could ask an estate agent how much the property is likely valued at to get an idea of this was "at an undervalue".If it was worth £200k but got sold for e,g, £195k "for a quick sale", then this likely wouldn't be "a consideration the value of which, in money or money’s worth, is significantly less than the value, in money or money’s worth, of the consideration provided", but £200k as a gift, or for £20 would be "at an undervalue".

 

The company?? is it solvent and trading?. If insolvent, and assets were transferred at an undervalue (e.g. his Mum got a company car worth £15k for £1!), then this could be reversed on application to a court by a liquidator, if the transactions were in the 2 years preceding the insolvency.

 

Both "transactions at an undervalue" rely on insolvency (the company being in insolvent liquidation / him being bankrupt), and on the insolvency practitioner taking action on behalf of any/all creditors, rather than you taking the action on your own behalf.

 

Hi BazzaS,

 

Many thanks for all the information and link. Very helpful.

 

As far as the company, we had a hearing in March where he requested to set the judgement aside which was denied. At the hearing the judge asked him and I questions and he said the company had never traded and I contested this showing the judge an invoice from his company which I had paid. However, all the funds I believed I was paying he took into his personal bank account, never the company account for work done and spent.

 

Hello ZBanfield, I'm sorry that I missed some of your earlier questions. If you want my input on something you are always welcome to give me a prod by clicking on my name and sending a private message, or hitting the triangle under your post which flags it for site team attention.

 

The input given by BazzaS re: transactions at an undervalue is spot on. I would just add that, if you get an order against the individual rather than against the company, a 'trustee in bankruptcy' would be appointed rather than a 'liquidator', as liquidators are for companies.

 

The other point to mention is that there is another part of the Insolvency Act which can be used in a situation where assets are being put of reach to frustrate enforcement. Have a read of http://www.legislation.gov.uk/ukpga/1986/45/section/423 which is self-explanatory. The key point is that an order reversing the transaction can be applied for under this part of the legislationby creditors (such as yourself) directly, without needing to go through the prior step of making the debtor bankrupt and having a trustee appointed. You would need to prove that the transaction was made for significantly less than what the asset is worth and that the transaction was done for the purpose of putting assets out of reach of creditors.

 

Although a simple attachment of earnings order may be an easier way of achieving the same thing ...

 

 

Hi Steampowered,

 

Thank you for that. Under the circumstances I will be getting an order against the individual rather than against the company.

 

Hi,

 

I have some further questions which I can pm, but will put here as they may help others.....

 

So, Mr. X's story is a little confusing and I want to make sure I focus on the right areas of law in court. I am assuming that the judge would expect me to reference the specific and exact points of law, especially for the fraudulent elements I am relying on for my case.

 

Mr X, Director of Company X's defence is that he acted as an individual not as Director of Company X in any capacity and we never entered into a contract.

 

He claims that I employed the builders (his company X's builders) personally and I gave him my house keys to let the builders into my home.

 

He also claims that I contracted with the damp course company too and again, he only let them in my house under my instruction.

 

I have submitted to the court in my exhibit bundle emails from the damp company to me confirming that they only dealt and contracted with him.

 

Mr. X has admitted receiving the money into his personal account but on the basis as an individual not Director of Company X work colleague and transferred this to the damp company and builders.

 

Mr. X has submitted only one bank statement to the court as evidence. However, this only shows payments from me which I was advised I was making to Company X for £102 (which he instructed me to pay into his personal account knowingly). This was for damp works.

 

Mr X's bank statement also shows Mr. X making one payment to the damp company.

 

However, the bank statement of Mr. X does not show any of the payments from me relating to the payments he is claiming he transferred to the builders which he claims I employed (these are in fact his builders employed by Company X).

 

 

 

I have the following questions.....

 

For the court case....

I assume when in court, I would reference the following or would the judge lead the way?

 

Firstly, I assume the judge has to decide whether he did act as Director of Company X or not. If he agrees, I then need to refer to

 

a) Common law and piercing the veil of incorporation and contest that as Director of Co. X Ltd, he is using this to avoid personal liability for dishonest actions and I am looking to sue him personally.

 

b) Refer to the points of law contained within The Insolvency Act 1986 c.45, Part XVI, Section 423, subsections 2 and 3. That he entered into a transaction defrauding creditors contrary to s423 of the Insolvency Act 1986 on the basis that he took the funds into his personal bank account and transferred the money to his brother, thereby depriving me of access to this money as a creditor of “Co. X” Ltd.

 

Therefore, he was acting fraudulently because he knowingly acted in breach of your statutory duties to Co. X Ltd. as a Director of X Ltd under the Companies Act 2006 and knew that the payment was an unlawful dividend contrary to s830 of the Companies Act 2006, as the company did not have any profits available for distribution to its shareholders.

 

 

 

 

Another question I have is I am reimbursing my neighbour as they will be coming to court as a witness for me out of my own pocket. If the judge finds in my favour, can I request reimbursement of these expenses?

 

As my neighbour is reluctant to discuss costs, I have used the jury service website as a guideline for reimbursement www.gov.uk/jury-service/overview and was going to print off this section and do a bank transfer to him, so I have a record for the court.

 

Is this correct?

 

 

Thanks in advance

[ZBanfield]

Apologies... I forgot to add the details of my neighbour's witness statement as I want to know whether This will really help my case....

 

My neighbour's witness statement main content states that Mr. X represented himself as Director of Company X and gave my neighbour a quote from Company X which he did not go ahead with. I assume that this will help my case a it is another person who can confirm that Mr.X represented himself to them also as Mr. X of Company X which contradicts Mr. X's statement acting as an individual and work colleague.

 

I just want to check this will help my case even though no money exchanged hands with my neighbour.

 

I have a further question about the court case....

My directions questionnaire stated there would be five witnesses (myself and four others). I now only have three. One is my neighbours wife who has submitted a witness statement to say she observed Mr. X at my house and knew he was supervising builders but she did not witness any discussions and does not want to attend court.

 

The other witness would have been really helpful as he was the mediator in the meeting held with myself and Mr. X. where he admitted the dishonesty regarding where the money had been paid to.

The mediator (previously my main witness) has told me he will not submit a statement or attend court to help my case. He knows the truth about everything and could have confirmed that:

a) Mr X. was acting as Director of Company X

b) Mr X took the money acting as Director of Company X, received it knowingly into his personal account and then transferred it from his personal account to his brother, never paying Company X which he advised me I was contracted with throughout.

 

Since the mediator, Mr. X and I all work for the same company, the mediator has been advised by our company H.R. Dept that as we are both employees, he is not allowed to submit a witness statement or attend court to support my case as it is a conflict of interest and in addition his job was threatened. Shall I mention this to the judge?

 

Will it harm my defence that I am missing two witnesses?

Shall I simply say that they were unable to attend.

 

Mr. X has no witnesses.

 

I am unsure how the judge will view the situation.

[BazzaS]

The other witness would have been really helpful as he was the mediator in the meeting held with myself and Mr. X. where he admitted the dishonesty regarding where the money had been paid to.

The mediator (previously my main witness) has told me he will not submit a statement or attend court to help my case. He knows the truth about everything and could have confirmed that:

a) Mr X. was acting as Director of Company X

b) Mr X took the money acting as Director of Company X, received it knowingly into his personal account and then transferred it from his personal account to his brother, never paying Company X which he advised me I was contracted with throughout.

 

Since the mediator, Mr. X and I all work for the same company, the mediator has been advised by our company H.R. Dept that as we are both employees, he is not allowed to submit a witness statement or attend court to support my case as it is a conflict of interest and in addition his job was threatened. Shall I mention this to the judge?

 

deplorable behaviour from HR, and I bet they wouldn't put that in writing / in an e-mail.

Of course he can appear in a civil court case: his being an employee of the same company as you and the defendant is incidental.

Are they also saying that you will be dismissed for bringing the claim, due to an equivalent "conflict of interest"? Risible.

 

Would the mediator be happy to appear if it looks as if he was forced to do so?.

A Witness summons could force him to appear. Using one where he doesn't want to appear might create hostility, but could you "sell him" on the idea?

 

"If you'd still like to appear if we could protect your position, I could get a Witness Summons issued. You could then use this to show you'd been forced to appear, and if HR tried to use the fact you appeared against you, they'd be on a sticky wicket"!

[ZBanfield]

deplorable behaviour from HR, and I bet they wouldn't put that in writing / in an e-mail.

Of course he can appear in a civil court case: his being an employee of the same company as you and the defendant is incidental.

Are they also saying that you will be dismissed for bringing the claim, due to an equivalent "conflict of interest"? Risible.

 

Would the mediator be happy to appear if it looks as if he was forced to do so?.

A Witness summons could force him to appear. Using one where he doesn't want to appear might create hostility, but could you "sell him" on the idea?

 

"If you'd still like to appear if we could protect your position, I could get a Witness Summons issued. You could then use this to show you'd been forced to appear, and if HR tried to use the fact you appeared against you, they'd be on a sticky wicket"!

 

I know it's disgusting. The company we work for is a facilities management company who have a contract for all the staff supplied with the client we all work for.

 

All of the management team are employed and contracted with the facilities management company and their HR dept are the ones who have instructed the mediator to do this.

 

After the mediation meeting, I know that Mr. X spoke went straight to HR and the management team and whatever he said, they are all supporting him. The management team are on his side and keen to 'cover it up' as the consultancy firm want to keep their contract with the client.

 

I have an email in my exhibit bundle from the mediator to me after the meeting took place stating "I have now also been told that I should take a step back from this. My advice to you would be to go down the legal route asap. I am confident that with the information you already have (letters/emails/documentation) that your voice will be heard in the correct channel."

 

I have been asking the mediator repeatedly for months about the case, the importance of his appearance and statement and he kept delaying responding and eventually then said he couldn't. He said he got in trouble for doing the mediation meeting too. I also have text messages on my phone which I can show the judge if required confirming he has been told a conflict of interest. He seems very reluctant and I understand concerned about keeping his job. He won't do it sadly.

 

My position has not been threatened working there are I am only on a zero hours contract, but I was called to a meeting with Mr. X and told to 'behave myself and be nice to him at work.' HR were not present at the meeting and no minutes were taken. It's all very underhanded. My hope is that if the case is successful, I will share the outcome with the client and if Mr. X is found guilty of the criminal offence too, he would not be allowed to continue working there.

[ZBanfield]

Hi,

 

I need some help with this delicate matter concerning payment to witnesses for my court appearance. One is my neighbour and the other, a work colleague who are appearing as witnesses in my case.

 

I am reimbursing them both out of my own pocket. If the judge finds in my favour, do I then request reimbursement of these expenses?

 

I have read the following :

 

http://www.justice.gov.uk/courts/procedure-rules/civil/rules/part27#27.14

 

I understand it is Costs on the small claims track - 27.14:

 

"e) a sum not exceeding the amount specified in Practice Direction 27 for any loss of earnings or loss of leave by a party or witness due to attending a hearing or to staying away from home for the purposes of attending a hearing;"

 

 

I also have looked up the following about the costs:

 

http://www.justice.gov.uk/courts/procedure-rules/civil/rules/part27/pd_part27

 

I understand it says under:

 

Costs Section 7.3 The amounts which a party may be ordered to pay under rule 27.14(3)© (loss of earnings) and (d) (experts’ fees) are:

 

(1) for the loss of earnings or loss of leave of each party or witness due to attending a hearing or staying away from home for the purpose of attending a hearing, a sum not exceeding £95 per day for each person, "

 

The court hearing is booked for 3 hours.

 

I am unsure how and when to submit a claim for reimbursement.

 

Do I need both people to submit a copy of their payslip and we pro-rata 3 hours and travel expenses and I then do a bank transfer to them for the amounts, so I have a record for the court.

 

Is this correct?

 

Also, can I claim for my previous court hearing in March when Mr. X requested to set the judgement aside and the court case as well?

 

Thanks in advance

[BazzaS]

Hi,

 

I need some help with this delicate matter concerning payment to witnesses for my court appearance. One is my neighbour and the other, a work colleague who are appearing as witnesses in my case.

 

I am reimbursing them both out of my own pocket. If the judge finds in my favour, do I then request reimbursement of these expenses?

 

I have read the following :

 

http://www.justice.gov.uk/courts/procedure-rules/civil/rules/part27#27.14

 

I understand it is Costs on the small claims track - 27.14:

 

"e) a sum not exceeding the amount specified in Practice Direction 27 for any loss of earnings or loss of leave by a party or witness due to attending a hearing or to staying away from home for the purposes of attending a hearing;"

 

 

I also have looked up the following about the costs:

 

http://www.justice.gov.uk/courts/procedure-rules/civil/rules/part27/pd_part27

 

I understand it says under:

 

Costs Section 7.3 The amounts which a party may be ordered to pay under rule 27.14(3)© (loss of earnings) and (d) (experts’ fees) are:

 

(1) for the loss of earnings or loss of leave of each party or witness due to attending a hearing or staying away from home for the purpose of attending a hearing, a sum not exceeding £95 per day for each person, "

 

The court hearing is booked for 3 hours.

 

I am unsure how and when to submit a claim for reimbursement.

 

Do I need both people to submit a copy of their payslip and we pro-rata 3 hours and travel expenses and I then do a bank transfer to them for the amounts, so I have a record for the court.

 

Is this correct?

 

Also, can I claim for my previous court hearing in March when Mr. X requested to set the judgement aside and the court case as well?

 

Thanks in advance

 

Yes and yes.

Don't forget : you must pay the witnesses' expenses regardless of the outcome of the case - their testimony can't be 'conditional', but you seek their expenses as a recoverable cost if your claim succeeds.

[ZBanfield]

Yes and yes.

Don't forget : you must pay the witnesses' expenses regardless of the outcome of the case - their testimony can't be 'conditional', but you seek their expenses as a recoverable cost if your claim succeeds.

 

Hi BazzaS,

 

Thank you, So just to check I will ask both people to submit a copy of their payslip to me and I pay them pro-rata 3 hours only or the whole day?

Hope this doesn't sound silly but do I pay them the gross salary or work out the net amount? I have no idea and don't want to offend them

 

I assume I bring this to the court as well a copy of my payslip to calculate expenses for the 3 hours too? I assume mine is net pay reimbursement?

[steampowered]

I have the following questions.....

 

For the court case....

I assume when in court, I would reference the following or would the judge lead the way?

 

Firstly, I assume the judge has to decide whether he did act as Director of Company X or not. If he agrees, I then need to refer to

 

a) Common law and piercing the veil of incorporation and contest that as Director of Co. X Ltd, he is using this to avoid personal liability for dishonest actions and I am looking to sue him personally.

 

b) Refer to the points of law contained within The Insolvency Act 1986 c.45, Part XVI, Section 423, subsections 2 and 3. That he entered into a transaction defrauding creditors contrary to s423 of the Insolvency Act 1986 on the basis that he took the funds into his personal bank account and transferred the money to his brother, thereby depriving me of access to this money as a creditor of “Co. X” Ltd.

 

Therefore, he was acting fraudulently because he knowingly acted in breach of your statutory duties to Co. X Ltd. as a Director of X Ltd under the Companies Act 2006 and knew that the payment was an unlawful dividend contrary to s830 of the Companies Act 2006, as the company did not have any profits available for distribution to its shareholders.

 

The first thing the judge would need to decide is who the contract is with. From what you have said, it sounds like there are three options - (1) a contract with this individual personally, (2) a contract with company X, or (3) several different contracts with the builders/damp companies. This would be determined on the facts of the case.

 

If the contract is with Mr X, the points you mention aren't relevant. If the contract is with company X, then you would need to either 'pierce the veil' or seek an order under s423 of the Insolvency Act.

[steampowered]

The other witness would have been really helpful as he was the mediator in the meeting held with myself and Mr. X. where he admitted the dishonesty regarding where the money had been paid to.

The mediator (previously my main witness) has told me he will not submit a statement or attend court to help my case. He knows the truth about everything and could have confirmed that:

a) Mr X. was acting as Director of Company X

b) Mr X took the money acting as Director of Company X, received it knowingly into his personal account and then transferred it from his personal account to his brother, never paying Company X which he advised me I was contracted with throughout.

 

Since the mediator, Mr. X and I all work for the same company, the mediator has been advised by our company H.R. Dept that as we are both employees, he is not allowed to submit a witness statement or attend court to support my case as it is a conflict of interest and in addition his job was threatened. Shall I mention this to the judge?

 

Will it harm my defence that I am missing two witnesses?

Shall I simply say that they were unable to attend.

To be honest, from what you have said it doesn't sound like any of your witnesses have much useful evidence to give so I'm not sure you are missing out on much by not having them attend.

 

Evidence along the lines you have described (i.e. that Mr X said in a meeting that he did or did not do something) is in any event hearsay evidence and would be given limited weight. I am also not sure why you would need this evidence, since presumably it is already clear from your documentary evidence that the money was paid into his personal account rather than a company account? Payment into his personal account is not decisive as to who your contract was with, but could help you in trying to argue that the contract was with Mr X personally.

 

I can't remember if the court gave directions/permission for you to call so many witnesses, but I can't imagine you would have been given only a 3 hour hearing if you had been intending to call so many people, so I don't really see much of an issue if several of your intended witnesses now don't want to attend.

[ZBanfield]

Dear All,

 

The court case has now taken place.

 

The bad news is the court lost ALL of my exhibit bundle and particulars of claim.

The way I found out when we went in, the judge began to speak quite aggressively and rudely to me at the beginning of the case by saying "what's this all about?" Well? I was completely thrown. When I mentioned the Particulars and the Exhibit Bundle, he told me had had none of it!!

 

Good news, I gave the judge my copy I had brought with me. He then apologised and I did my best to re-focus.

 

The judge looked at my case against Mr X's company and Mr. X and because I was thrown by the beginning of the proceedings, I was slower in going through the evidence and ran out of time which meant I was not able to show him evidence to convince him of the fraud by Mr. X using his company and the contract with Company X Ltd.

 

Mr. X kept saying I went up to him and all the staff at work asking if they knew a builder and that he was innocent and just found a building firm (his builders) for me.

Mr. X back tracked on all the bank payments and said he forgot to submit his bank statements to the court prove he paid the builders my money. The judge accepted this!

Mr. X also said he paid all the money in cash to the builders not bank transfers as in his statement and the judge accepted it.

I showed the judge the invoice from Mr. X's Company for the work which he paid into his personal account and did not pass onto anyone. The judge accepted Mr. X's defence that he passed money on in cash and used his company invoice in error and that he was only passing money to the builders and damp course co, again saying all cash now not bank transfers.

 

However, as I had so much evidence from the Damp Course company confirming that they dealt with Mr. X and emails and text messages with Mr. X, the judge said there was obviously a contract with someone and it was him personally and that he acted as a Managing Agent to the builders (his builders which I continued to deny).

 

The judge stopped the case because he wanted to go to lunch and then we had to wait while the judge went to lunch and he gave the verdict when he came back.

 

Ultimately the judge found him personally responsible, reimbursed my court fees and reduced my claim to a fraction of what I asked. However, the judge believed Mr. X that he just found these builders for him and they were not his and disagreed with my claim for the theft and damage at my property and said as they were not Mr. X's builders so he was not responsible for their actions and dismissed my costs. The judge also refused to pay for my witness who did attend.

 

The judge said he rang a builder during lunch and came up with his own figures. He then made jokes referencing to details of the case about how Mr. X would repay me. He also when into detail with Mr. X about options available to him if he could not afford to pay and Mr. X stayed in the court after I left speaking to the judge. It did seem apparent tat the judge favoured Mr. X but I still won the case and it will be less difficult at work.

 

I would like to express my huge thanks to steampowered, BazzaS, Ganymede, SabreSheep and anyone who I have forgotten to mention who contributed. Fingers crossed Mr. X pays, I will update you what happens next.........

[steampowered]

Very well done, I'm really pleased you managed to get something out of this. Now that you are getting a judgment against Mr X it will be so much easier to enforce this than if you had a judgment against X Ltd.

 

What percentage (roughly) did you get awarded out of what you were claiming?

[ZBanfield]

Very well done, I'm really pleased you managed to get something out of this. Now that you are getting a judgment against Mr X it will be so much easier to enforce this than if you had a judgment against X Ltd.

 

What percentage (roughly) did you get awarded out of what you were claiming?

 

 

Thank you steampowered.

 

 

I worked out the figures and I am sadly £2,500 out of pocket. The judge only awarded 30% of my claim. So, I am not in the same position I would have been had I not entered into the contract and Mr. X still got to keep some of the money.

 

I now have to wait 14 days for the payment. I have a feeling Mr. X is not going to pay... so I may have to enforce the judgement further. Fingers crossed......

 

I found it a bit strange in court because the judge said Mr. X was only a managing agent, so dismissed all the costs for the damage and losses completely.

 

The judge accepted Mr X's verbal statement that I paid funds into his account and cash and that Mr. X took the money out of his bank account and gave over £4,000 cash to the builders. However, Mr. X did not submit the bank statements to the court at all for these transactions to support this. He told the judge "I forgot" and the judge accepted it.

 

Also, when we came back into the court room for the verdict Mr X and the judge were laughing and joking which I found a bit unnerving.

 

I still have a few questions I am hoping you can help with as I am having sleepless nights....

 

Is it better that the judge completely dismissed the contract with Black Velvet Ltd and didn't find him guilty of fraud?

Do I let Companies House close them down now?

Would they still be interested as he used the company and I made payment for the invoice to Mr X's personal account and they judge said he was personally responsible?

 

The judge said he didn't need to pierce the corporate veil as he did not see any paperwork with their name on (he dismissed the Company X invoice I presented completely).

 

 

Is there anything I can do about the judgement amount?

 

Is it worthwhile to make a complaint about the court losing the paperwork and the judge dismissing that the majority of the building work was not finished and the fact that the award puts me in a negative financial position?

 

 

I was reading up and found this article... I am unsure if it would help be recover more of the money to finish my house.

 

"

Making a Complaint About the Small Claims Court

By: Lorna Elliott LLB (hons), Barrister (6 Mar 16)

Complaint Small Claim Court Ombudsman

 

If you are unhappy about the way in which your case has been handled, you can complain to the court that has had conduct of your case. Remember that this is not an ‘appeal’ against a decision made by a judge but rather a means of complaining when you are unhappy with the way staff at the small claims court have dealt with your case. If you have lost money as a result of the way your case has been handled, you can also claim for compensation - although whether this is accepted and paid is another matter.

 

How to Complain

You can complain in person, at the court, by telephoning the court, or in writing, by email, by writing a letter or by filling out form EX343A. Once your claim has been received it will be evaluated and a report will be filed. If your complaint is considered to be valid, you will receive an apology and compensation (if you have requested it and it is considered appropriate in the circumstances. "

 

Link to article:

 

http://www.aboutsmallclaims.co.uk/making-complaint-about-small-claims-court.html

Edited August 15, 2016 by ZBanfield
Additional information

[Ganymede]

You can complain about lost paperwork etc but not amount the Judges decision and what he awarded.

[ZBanfield]

You can complain about lost paperwork etc but not amount the Judges decision and what he awarded.

 

Thank you Ganymede. It is likely that they will just apologise or do you think they will award compensation?

[Ganymede]

For the lost paperwork?

 

Just an apology letter probably.

[ZBanfield]

For the lost paperwork?

 

Just an apology letter probably.

 

Many thanks Ganymede. I only ask as this whole process has been mentally and physically exhausting and I don't want to waste more energy if it will be fruitless.

[Ganymede]

You've put in so much already, sending off a quick complaint letter isn't going to be that hard.

 

What have you got to lose?

[ZBanfield]

You've put in so much already, sending off a quick complaint letter isn't going to be that hard.

 

What have you got to lose?

 

Thank you Ganymede. I would appreciate some advice in what to put in the form. would I just put in the financial loss, that I took a day off work to deliver the documents and distress at the hearing in being told only then that the entire exhibit bundle was not in the Judge's paperwork resulted in me being unnerved and giving the judge my exhibit bundle. To be honest this completely threw me and I did not follow the order and structure of my file for the case and key evidence was not raised with the judge. Also the judge said he did not have the particulars either. I need help on the wording please and how to write effectively.

 

Any advice would be appreciated on the most relevant information and how to express this clearly.

 

 

I have read the document and it seems I can email the court directly initially.

 

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/223545/contact-director-wales-hmcts-annex-a.pdf

[Ganymede]

Include all of that.

 

There's no specific wording just detail their mistakes.

 

Address it to the Court Manager as well.

[ZBanfield]

Include all of that.

 

There's no specific wording just detail their mistakes.

 

Address it to the Court Manager as well.

 

 

Thank you Ganymede. I will write back on here when I have completed what I will send to the court if I can get a second opinion / review before I send would be helpful.