Contractual Disputes (General) Case Studies

Invoice discounting facilities withdrawn

We were asked to advise a company engaged in providing cold storage and transport facilities but the survival of whose business was threatened when its invoice discounting facilities were withdrawn, with no proper explanation, by the finance company with whom it had negotiated the facilities.

What effects did this have on the business:

From the client’s point of view the matter was critical and urgent. The finance company had concerns resulting from unfounded and malicious allegations made by a competitor of the client that monies had been fraudulently diverted. The finance company failed to discover any evidence to substantiate the allegations.

Our strategy:

The case raised legal issues as to whether, on a proper construction of the finance agreement, the finance company was entitled to withdraw facilities. What the client required was a swift and pragmatic solution to enable it to continue trading. The task was to negotiate termination of the finance agreement to allow the client to obtain finance from an alternative source.


The outcome:

The outcome achieved for the client was the return of invoices held as security by the finance company and the payment of sums due to the client from the finance company. The client duly obtained alternative finance and its business continues to thrive.

Wrongful allegations of invoice fraud

Following an invoicing fraud at a North Wales slate quarry subsidiary, our client, a commercial agent salesman for the subsidiary, was accused of price-fixing by the head company and was forced to sue to recover outstanding commission.

The quarry owned by a PLC was keen to settle the claim at mediation enabling them to merge with another materials group and to rehabilitate the subsidiary.

The outcome:

The allegations of fraud against the salesman were withdrawn and he was paid a global sum in settlement.

If you need advice and help with a dispute, contact us today.