HomeCase studiesSMEs, directors & shareholdersDirector servicesSuccessfully reducing the amount due by a director after liquidation

Why the client needed our help

The client approached us regarding a claim of £230k made by the Official Receiver of their former company. The claim was based on alleged damages due to breach of a compromise agreement, or alternatively, it sought recovery of a debt related to an overdrawn balance on the client’s director’s loan account. We engaged in pre-action correspondence on behalf of the Client before the case escalated to the High Court and was later transferred to the Central London County Court.

How we helped

We provided a robust defence for the client during the pre-action phase and continued our support once the case was formally presented in court. FWJ entered onto the court record, aiding with initial disclosure and the client’s substantive defence. Noticing weaknesses in the Claimant’s case, we sought expert legal counsel to assess our client’s position. Counsel suggested strategic responses and raised concerns that the initial compromise agreement might contravene the Consumer Credit Act. Upon seeking further specialised legal advice, it was confirmed that the legal position was indeed in the Client’s favour.

The Outcome

Our efforts led to a well-structured, formal defence against the claims, complemented by a strategic without prejudice settlement offer. We further bolstered our client’s position by threatening the opposition with a security for costs application, highlighting the claimant company’s liquidation status.

Ultimately, the opposing party agreed to settle for slightly less than half the original claim amount — a significant victory for our Client.

Douglas was amazing in helping me get an outcome beyond what I expected with a director disqualification case brought against me by the Insolvency Service. Douglas helped me put together a good defense. Throughout the journey, he was very supportive and helped me understand legal terms, implications and was honest about the various possible outcomes. I am beyond grateful that the case against me has now been dismissed and I couldn’t have done this without his help. I would highly recommend FWJ’s services to anyone facing a similar situation as mine. Thank you for all your help.

a company director

Key contacts

Douglas McEvoy

Douglas McEvoy

Associate

Andrew Carter

Andrew Carter

Partner

Maria Koureas-Jones

Maria Koureas-Jones

Partner

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