Ask a solicitor: The amount I've been offered won't even cover my building materials
I am fuming as I worked very hard to get it done quickly and I had to pay an employee to help me with the build over the summer months. File picture
Dear reader,
I am sorry to hear this. I appreciate that this must be very frustrating. The recovery of a debt is an action based on contract and must be brought within six years of when the sum became due.
If someone owes you money (the debtor) for a protracted period of time or has indicated that they will not pay you the full amount, it is prudent to seek legal advice as soon as possible to protect your interest.
Obviously, it would have been better if a written building agreement or contract had been put in place between you and the farmer. You should issue a detailed invoice within seven days of completing the build. I am not sure if you have done this.
A statement of account could be issued within 21 days of the invoice. Following the statement of account, if no engagement has occurred in relation to it, a first letter of demand should issue after a 14-day period. In practice, a further period of 14 days should be allowed for the debtor to engage with your business.
The practicality of recovering a debt through the courts can often prove to be a time-consuming and expensive route. It would be advisable to try and talk to him first and try and reach a compromise.
If an agreement cannot be reached, it would be prudent and advisable to determine whether or not pursuing legal proceedings is cost-efficient. In that regard, if the debtor does not have any funds to pay you or assets to register judgment against, it may well prove fruitless and you could be throwing good money after bad.
It is a good idea to carry out a Land Registry search to see what the farmer owns or to be satisfied that the farmer has the funds to pay you your bill.
In order to recover the monies owed, legal proceedings should be issued in the appropriate jurisdiction, and accordingly, in your particular case, the Circuit Court is the appropriate court. The jurisdiction and limits applicable to the Circuit in civil proceedings are from €15,000 to €75,000.
Similar to the style of practice adopted in the District Court, your solicitor should send a letter of demand to the debtor, giving the respective party an opportunity to respond to the claim or to satisfy the debt. In the event that there is an inadequate result to this course of action, proceedings should be initiated which has set out clear details of the parties to the action, the breach of contract or terms and the liquidated sum claimed.
The hearing of any contested claims could take from five to 10 months to be heard, subject to court scheduling. Once the matter is ready for hearing, the trial of the matter will allow both parties to be heard under oath before a judge, and judgment will be granted if the creditor is successful.
I would also strongly advise you going forward to put written contracts or terms in place before carrying out work for people.
Email: info@walshandpartners.ie
- While every effort is taken to ensure the accuracy of the information contained in this article, Karen Walsh does not accept responsibility for errors or omissions howsoever arising. Readers should seek legal advice in relation to their particular circumstances at the earliest opportunity.
