Breach of contract case - IT consultancy firm's unpaid retainer

The Client

A company providing information technology and private equity development consultancy services.

Value of Dispute

£60,000

The Commercial Dispute

The Claimant in this breach of contract case (an IT consultancy services company), had entered into an agreement with the Defendant to provide them with information technology and private equity development-based consultancy services.

In accordance with the consulting agreement, the Claimant was obliged to receive a one-time retainer payment at the start of the agreement, followed by sequential monthly payments at the end of each month.

Invoices were issued by the Claimant in respect of the sums due, after providing their services. The Defendant failed to pay by the due date or at all, in breach of the terms of agreement. 

How Escalate Resolved – Services Used

Within one month of engaging Escalate, we quickly moved to issue and serve proceedings, as a result of the Defendant’s continued failure to respond to the claim.

The Defendant continued to ignore the Claimant’s claim, and consequently we obtained a default judgment on their behalf. At this point, the Defendant began to provide assurances that payment would be made, but failed to pay the sums due under the judgment.

We promptly moved to wind up the company as a result of its clear inability to pay its debts. This was done during the period of Covid-19 where a moratorium was in place against bringing a winding up petition, unless it could be shown that Covid-19 did not affect the Defendant’s ability to pays its debts.

When bringing the petition, Escalate were able to show that Covid-19 had not affected the company’s financial position, as a result of the assurances made by the Defendant during and after proceedings.

Two days prior to the Winding Up Hearing, the Defendant finally made payment of the debt due to our client and the supporting creditor (also a client of Escalate). This payment covered all costs and interest, including the costs associated with bringing the petition.

From start to finish, the case was resolved less than six months after issuing the claim.

Client Testimonial

“Thank you all for all your efforts in securing payment of the monies due to both my company and my son. Without your dogged determination (and mine!) I do not think we would have got there, and you did that against a backdrop of unfair and at times downright unhelpful comments from the debtor. I would have no hesitation in recommending the services of Escalate – you have been exemplary!”