Court Action..

[HarryFindlay]

Advice needed, if you take a company to court and during the court case..ie a civil case, the company goes into administration, where does that leave me?

Many thanks Harry

[Buenchico]

Possibly up a creek without a paddle?

We might need the services of Barmaid (AB's tame civil law barrister) for a definitive answer here but I'm fairly certain that I've seen court judgements given against 'Bloggs & Co (in administration)' or 'Acme Ltd (in receivership)'. The existence of such judgements would seem to suggest that the court case can continue (in order that the administrator or receiver can determine whether your name should be added to the list of creditors). Regrettably though, winning your case won't help if there are no funds to pay you.

If the administrator believes that the business can be saved creditors will be asked whether they'll accept a payment of so much in the pound as full and final settlement of the debts. If the creditors vote against this proposal, or the administrator doesn't believe that the business can be saved, the business will go into receivership, with creditors being paid as much (or, more likely, as little) as is available through the disposal of the company's assets.

Chris

[PeelerPal]

Hi Harry,
This can be quite a tricky subject to tackle. However, if your case is a civil dispute you are within your rights to take the person or persons responsible for your greivance to civil court and not the company itself. If you have become unemployed through no fault of your own and have not been in employment for longer than 7 days, you have the right to claim for Legal Assistance (formaly known as Legal Aid). Which means you will be entitled to seek legal advice at a heavily reduced cost or at no cost to yourself depending upon your case and your circumstances. Good luck.