• Bell Lax pioneered no win no fee arrangements for commercial disputes. If you lose, we lose, therefore we always fight for you.

  • Bell Lax pioneered no win no fee arrangements for commercial disputes. If you lose, we lose, therefore we always fight for you.

Dispute
Resolution

Business Disputes Case Study 1

The problem

Bell Lax acted for a businessman who had guaranteed the repayment of a seven figure sum loaned under an invoice discounting facility. Although the businessman admitted that his company had received the money, he said the financier had promised to lend considerably more money in line with an approved business plan. Instead, the financier had cut off funding part way through the plan and prevented the company from continuing to trade.

The financier issued court proceedings against the businessman and his co-directors demanding immediate repayment of the sums due and threatened them with bankruptcy.

The solution

Bell Lax defended the businessman on the basis that the financier had not stuck to its promises and so could not rely on the guarantee. Bell Lax argued that the financier had obtained the guarantees by misrepresentation and had failed to comply with the terms of its own facility.

The financier unsuccessfully asked the court to strike out the businessman’s defence. Following further negotiations, the financier agreed to drop the proceedings and not to claim any money at all from our client.