Improper termination of IT Support company's contract

The Client

Managed IT Support firm.

Value of Dispute

£80,000 

The Commercial Dispute

Our client provided outsourced I.T. and managed data services to the debtor, who are a large group of accountancy firms based in Yorkshire. The complicated business structure of the debtor meant that the client entered into various sub-agreements for the services provided for a variety of companies, under separate T&Cs and governing differing services and obligations of the parties.

The debtor wanted to end the agreement with the client but failed to adhere to the termination clause(s) within the contract, so was being pursued for the full remaining contract length. 

In the eyes of the debtor, they believed that our client had repudiated the contract (which was worth £250,000) through non-performance issues, due to an alleged I.T. breach 6 months prior. 

How Escalate Resolved – Services Used

Escalate contacted the debtor’s head office to request payment, but were quickly passed on to the debtor’s solicitors, a large national firm, who argued the debtor’s position and set out the potential for a significant six-figure counterclaim against our client. Whilst we were confident of our client’s position, they were rightly concerned about the potential risk to their business in the event that they were unsuccessful with their claim. 

Escalate proceeded to negotiate with the debtor’s solicitor and were able to secure a circa £80,000 settlement in full and final settlement, thus securing the client a significant remuneration and removing the risk of the Counterclaim entirely.