The problem
Bell Lax acted for a number of businessmen whose company had failed after a development had fallen through and a fraudster transferred money from its bank account preventing it from trading.
The liquidator of the company issued court proceedings against the businessmen claiming a seven figure sum for debts arising out of the failed development, which it blamed on the businessmen. The liquidator said that the businessmen were misfeasant and had paid themselves in preference to the company’s other creditors. One of the businessmen had previously been disqualified from directing a company and the liquidator contended that he was acting as a shadow director.
The solution
Bell Lax’s clients had depended on the company for income and were unable to afford substantial legal fees to defend themselves in a lengthy trial in the High Court. They did not accept that they had caused the failure of the development.
One of Bell Lax’s solicitor advocates represented the businessmen in court and convinced the liquidator to attend a mediation. At the mediation, Bell Lax persuaded the liquidator to discontinue his claims against the businessmen.
