FAQs about Commercial/Business Litigation
Bromley Commercial Litigation and Disputes FAQs
What is the best way to manage a dispute ?
There is no one size fits all answer to this question as it entirely depends on how early on the dispute has been managed, the issue at stake, the nature of the relationship between the parties and their relative bargaining positions. With that said, it is always advisable to manage a dispute from the earliest stage possible as this will maximise your chances, give you a wider range of options and devise a long term strategy.
If the parties are prepared to negotiate, commercial mediation is arguably the best way of resolving a dispute. Mediation is a much quicker, cheaper and less formal way of managing disputes. As matters are discussed behind closed doors, there’s also no issue of confidential issues being leaked out. Mediation involves negotiations taking place between the two parties with the aid of a professional mediator, preferably one with experience in handling disputes of your type. If an agreement can be reached, it can be made legally binding such that any party in breach will be contractually liable. Arbitration is another common way of resolving disputes. Arbitration resembles a court hearing. With the mutual agreement of the parties to the dispute, an arbitrator is appointed to come to a decision on the dispute, which can be made legally binding.
You should always check the any contracts involved in the dispute to see if it was agreed that mediation or arbitration would be used to settle disputes.
I want to take legal action against a customer. How should I go about it ?
Firstly, you will need to establish your legal right to take action. If a debtor hasn’t paid, for example, have you tried contacting him yourself? Doing this may save you a lot of time, money and effort. However, if you have decided legal action is necessary, you should consult a solicitor to establish the legal basis and merits of your claim. If a dispute is not settled by writing to the other party through your solicitor and stating you intention to commence legal proceedings if no action is taken, you should be prepared to make an application to the courts. To make an application, you will have to fill in an application form for the relevant court (usually the county court) , fill in a witness statement and pay the court fees, all three of which a solicitor can help you with.
I want to recover a debt. How should I go about it ?
As with any dispute, it is important to try and use non-legal means to try and settle the dispute first. If this proves fruitless or is impossible, seek advice from a solicitor who will write a letter to the debtor stating the merits of your claim and your intention to take legal action if the debt is not paid.
The next step will involve making an application to the courts. For simple debts, you can apply online at Money Claim Online, although it is advisable to draft bigger and more complex claims using a solicitor. If the debtor wishes to contend the claim, the claim will be dealt with by one of three tracks in the county court (small claims, fast track or multi track) or, more rarely, the high courts, particularly for very large and complex debts.
For debts larger than £750, a statutory demand can be used which will give the debtor a chance pay the debt within 18 days or make a counter-claim within 21 days. It is important you are prepared to follow up with bankruptcy proceedings, which is why £750 was stated as that is the minimum amount necessary to commence proceedings.
For more information and advice, please click the following link for business dispute solicitors in Bromley