HomeCase studiesSMEs, directors & shareholdersDirector servicesHaving a liquidator’s claim against a director dismissed at trial with a full recovery of legal costs

Why the client needed our help

Our client was the director of a former tax advisory company which had been placed into insolvency.

The company’s liquidators were seeking to attach a personal liability to the losses made by HMRC as a creditor of the company, and had made a claim against him. Our client had a strong defence and disputed the claim but was of limited means and worried that, if he was unable to defend it, he would be financially worse off than if he accepted it. He turned to us for help.

How we helped

We started by trying to find a way for our client to avoid the cost of a formal defence. Initially, this was through correspondence with the liquidators, asking that they drop their claim against him. When they refused to do so, we sought to settle on a nuisance basis, explaining that it would be difficult for them to prove our client’s personal liability. When this offer was rejected, we agreed to formally defend our client on a contingent basis whereby we would only be paid if successful. The proceedings went through to trial.

The outcome

The liquidator’s claim was dismissed at the trial and all of our client’s legal costs were recovered.

As a result, our client – who was in his late 50s and not far from retirement – was able to protect both his matrimonial home and his pension.

Key contacts

Stephen Downie

Stephen Downie

Partner

Shevy Narendra

Shevy Narendra

Senior Associate

Sue Brumby

Sue Brumby

Senior Associate

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