Blog posts - disputes

What should SMEs consider before voting in the Brexit referendum?

For the past few years the Civil Justice Council ADR Working Group has been looking at the role of Alternative Dispute Resolution (ADR) and considering how it can and should be used in the future. The main question posed was whether it should be compulsory.They published their Final Report in Novemb...

Last August I blogged about the perils of trying to rely on a hotly disputed contract where the contract was based on an alleged conversation in a pub.The spat between Jeffrey Blue and Mike Ashley ended up in the High Court which found that no contract had been made.But this also applies to any any ...

You havegiven a Personal Guarantee to a creditor of a debt payable by another personcompany or organization, the creditor has made a formal demand and followed itup with service of a Statutory Demand. What should you do?First ofall you must act quickly. To avoid a bankruptcy petition you must make p...

On the whole, the outlook for SMEs and the economy as a whole looks brighter as we start 2016 than was the position a year ago. A year of improvement Then, I was concerned about Greece falling out of the Eurozone and the knock-on effects that would have across Europe, and the uncertainly of what gov...

The recent high profile case between Jeffrey Blue and Mike Ashley has brought a reminder from the High Court on how a contract is formed in English law and why it is so important to record any agreement in writing.On 26 July 2017 Mr Justice Leggatt gave his judgment in a claim brought by the investm...

Whom do you turn to when you’re in dispute with yourbusiness partner(s) and what should you ask them? How do you know whether your accountant or local solicitor isthe best person to advise you? For many business owners and directors, their first port ofcall is their accountant. After...

Flat management companies are companies that are set up tomanage blocks of flats. They mainly deal with issues such as repairs but alsomay have a role in ensuring that flat owners comply with the terms of theirleases.It is usual for the shareholders of these companies to bethe flat owners. They buy ...

On 21 March 2017 the Ministry of Justice published thenew and long anticipated Pre-Action Protocol (“PAP”) on debt recovery . It willcome into force on 1 October 2017.So what will this mean in practice? It has long beenthe requirement of the Civil Procedure Rules that parties should foll...

Sometimes you cannot help but think that the internet of things is moving so fast that it is difficult for old established laws and customs to adapt and keep up with innovations.The global explosion of short term lets via organisations such as Airbnb is a prime example. It is a huge challenge to the...

One of the things that our clients are asking is what they can expect from the new government. One of the good things about a majority government is that the we do not need to wait for the results of coalition agreements to know what to expect and can instead look to see what the Conservatives promi...

A recent High Court case has highlighted the extent to which commercial landlords need to take care when carrying out works to property which are likely to cause disturbance to tenants.Timothy Taylor Limited had a high class modern art gallery in Mayfair, for which it was paying a very substantial r...

Back in June 2015 I posted a blog on forfeiture of commercial leases, which is the term for when a landlord recovers possession due to a breach of the lease by the tenant. That blog looked in particular at forfeiture where the tenant was in arrears of rent.A recent case of Pineport Limited v Gr...

The staggering rise in court fees that came into force this week has sent shock waves throughout the SME sector. By way of summary: For a claim worth £25,000, the issue fee has increased from £610 to £1,250. For a claim worth £70,000, the issue fee has increased from £9...

Many written contracts contain a clause stating that only the written terms will apply and that they can only be varied by agreement in writing.So what happens when the written terms do not reflect what has happened during the performance of the contract? Is it possible that terms could have been va...

Back on 29 January I blogged on the massive court fees hike proposed by the government.It was thought that in view of the consultation period and controversial nature of the hike that any proposals would not be in force for many months. But it seem that the government is hell bent on forcing through...

Commercial landowners should always take care to avoid claims for noise nuisance where any activity on their premises is likely to cause nuisance to neighbours.A recent case has highlighted the issues. In 2006 Mr and Mrs Peires bought a 6 bedroom mansion in Denham, Buckinghamshire. The property bord...

The Ministry of Justice has fine tuned it's proposed massive hike to court fees and it is now out for a final consultation which closes on 27 February 2015.So what are the changes, when are they likely to come into effect, and what impact will they have?The MoJ claim that the vast majority of c...

Normally a director, or indeed a shareholder, will not have any personal liability for any debt of a limited company, but there are exceptions.One exception that I will cover in this blog is where an insolvent company is pursuing (or defending) litigation which is unsuccessful, and the company canno...

As we recover from the Christmas and New Year holidays, many business people are reflecting on what 2015 may have in store. 2014 saw the beginning of a period of stable growth and business optimism in the SME sector has risen as a result. Investment and productivity are still low but I am sure these...

It is quite often the case that trade suppliers will require personal guarantees before they will open a credit account and trade with an organisation. An unsuspecting employee may sign off the contract without realising they have signed a personal guarantee with personal implications for them ...

Shareholders have rights as shareholders, whether or not they are directors of a company as well. Many shareholders’ rights are set out in the company’s Articles and any Shareholders’ Agreement. These may extend or reduce some rights. However, the Companies Act 2006 also sets out c...

It is quite common for pre-estimated compensation for specific breaches of contract to be provided for in the written contract at the outset, avoiding the difficult and costly process of calculation of loss when breach occurs. The other advantage is of course certainty, allowing each party to unders...

The recent case of Century Projects Ltd v Almacantar dealt with the competing interests of the landlord and tenant. The landlord wished to carry out repairs and renovation which it was entitled to do, but the tenant was concerned with the potential catastrophic impact on its business by the method p...

The law on adverse possession is complicated. First principlesWhat exactly is “adverse possession”? Basically it is an occupation of land inconsistent with the right of the “true” owner. By “true owner” I mean someone who holds the “paper” title of eit...

Step 1 - Identify your position • Prepare a chronological statement dealing with all the issues and identify all key documents such as any relevant contract, terms and conditions, correspondence and e-mails. • Identify your key personnel who would be called upon to give evidence. Get writt...

One of the things many entrepreneurs overlook in the rush to form a company and start their new business venture is the importance of giving thought to which individuals have ultimate control over the company.One of the advantages of going into business with someone else is that each person brings s...

A director owes duties to the company which either arise as a result of the Companies Act, common law or contract. Duties under the Companies Act Under the Companies Act 2006, the duties are owed not just by directors who are registered as such but also by those who are held out as directors even th...

Back on 2 June I blogged on forfeiture, and said that "Note that if the Landlord forfeits the lease he no longer has the right to seize any goods or possessions of the Tenant remaining on the premises."But I must point out a very important distinction between "goods and possessions" and "tenants fix...

Reason 1 - Differences in contributions to the business After a while, it often happens that one director or group of directors ends up contributing more than the others. Often, one ends up bringing in more work, or provides more of the finance needed than others. This is perhaps the most common rea...

These days, when faced with a problem, most people look online for an answer. We type our question into a search engine and expect that somewhere within the first few pages returned, we will find our answer. This approach works well for most things: factual information, news, celebrity gossip and sh...

In this age the courts expect that parties will make every effort to resolve their dispute before any court action is taken. But there are risks if the parties enter mediation, a form of Alternative Dispute Resolution (ADR). Read on to find out more about ADR and mediation in general.There is a set ...

Forfeiture for non payment of rent (which may include service and other charges reserved in the Lease as rent).The ancient law of distraint, allowing the landlord to use bailiffs to arrive unannounced and seize goods without due notice, has now been consigned to the history books. See my blog&n...

What is a partnership?A legal Partnership comes into force when two or more people start a business that does not have any other legal form such as a limited company.Often there is a written Partnership Agreement which sets out how the business is to be run but, where there is not, it is governed by...

The staggering rise in court fees that came into force this week has sent shock waves throughout the SME sector. By way of summary: For a claim worth £25,000, the issue fee has increased from £610 to £1,250. For a claim worth £70,000, the issue fee has increased from £9...

A commercial lease often contains a covenant by the tenant to keep the premises in repair and deliver them up in repair at the end of the lease. In some cases the lease also requires the tenant to “put” them in repair, whatever their state at the commencement of the lease, which is a far...

Something strange is happening. Most of the time when I look at the business news these days, it is positive. Most indicators show that the economy appears to have turned the corner and we are likely to be entering a period of sustained growth - not fast growth it must be said but slow, steady growt...

As we start 2015, it does look as though the prospects for commercial landlords in opposing lease renewals under Part II of the Landlord and Tenant Act 1954  has become a lot easier as a result of the Court of Appeal decision in Youssefi v Musselwhite.To recap on the law, a landlord who do...

An interesting recent study from by Imperial College Business School, Leeds University Business School and Durham University Business School has revealed that family businesses are better at avoiding bankruptcy and insolvency than non-family-owned businesses. The study looked at what were the partic...

The problem with trees-a landowner’s liability Two recent cases have highlighted the extent of a landowner’s liability where trees growing on their land have damaged a neighbour’s property. In 2013 a court decided in favour of the landowner where Stagecoach South Western sued her f...

The government came to power in 2010 promising to get rid of unnecessary red tape, or at least not to increase it through its ‘one in one out’ policy. The Department for Business Innovation and Skills (BIS) invited business leaders to tell them what regulations they wanted scrapped as pa...

If you are a shareholding director and wish to leave your company, whether voluntarily or under pressure from your fellow shareholders, your main concern will be getting a fair price for your shares and other rights. This will usually be determined through negotiation and, before you embark on this,...

The new system of commercial rent arrears recovery (CRAR) comes into force on 6 April 2014.All the necessary regulations have now been published. So from 6 April landlords will not be able to send in the bailiffs without notice to recover arrears. A whole new system of rent enforcement comes into pl...

One question that I get asked a lot is: “When I’m dealing with a dispute by email, when should I use the phrase without prejudice? Many business people know they should use the term but are not sure when and what it means. Some write “without prejudice” on all correspondence ...

There are certainly some measures in the Chancellor’s Autumn Statement that will help SMEs. As always, however, the devil will be in the detail (which remains to be seen) and much will depend on how some of the new measures are implemented. There are some measures that could help increase inve...

 The law of Defamation has finally in the 21st Century arrived in the on-line media and social networking age.The Defamation Act came into force in England and Wales on 1 January 2014. It is designed to modernise the law of defamation and strike a fair balance between competing interests w...

What authority does a director have? A company operates through its directors. The extent of powers that the directors have are set out in the company’s Articles, Memorandum of Association, shareholders’ or board resolutions, or other agreements. Unless authority has been delegated to in...

In the case of PGF II v OMFS Co and another, the Court of Appeal on 23 October has confirmed that refusal to mediate without giving good reason is itself unreasonable, and can deprive an otherwise successful party of their costs.In the circumstances of the case the defendants ignored the claimants' ...

I know from my experience of talking to clients that for most small, family or owner managed businesses, the prospect of picking up the phone and first talking to a solicitor is not something they relish. You might expect that cost would be the main reason that they dread that call but, in fact, it&...

The failure of Greece to form a government following elections has led to many believing that a Greek default and exit from the Eurozone is now more likely than not. If this happens, then it is probable that other countries in difficulty, such as Portugal, Italy and Spain, will soon follow, and poss...

Running a business is stressful; there’s no doubt about that. But new research from business insurer Hiscox suggests that, in spite of increased physical and mental stress, UK SMEs are determined and up for new challenges.According to their SME Health Check research commissioned amongst 502 bu...

A question I am often asked when advising a company about how to deal with a rogue director is what can the courts do to help.The first thing to appreciate is that directors owe duties to the company itself and it is usually only the company that can take court action rather than its shareholders or...

There have been several positive signs in the last few weeks that the economy might have turned the corner. A survey by the Institute of Directors of its members showed that 50% of business leaders expected revenue to increase in 2012 and 40% expected to increase profits over the year. However, when...

Step 1 – Know your strengths and your weaknesses The key to this is to take a step back and appraise your situation calmly and objectively. Look at the contract documents and, if you don’t have a formal contract, you will need to look at any correspondence and emails to show what you agr...

The BBC has today published a letter from Vince Cable to David Cameron and Nick Clegg written on 8th February 2012. In it, Mr Cable states that government policy is “missing a compelling vision of where the country is heading beyond sorting out the fiscal mess”. He argues that the govern...

The 200th anniversary of Charles Dickens’ birth has just been marked across the UK and I am reminded of the most famous line from Oliver Twist, “Please Sir, can I have some more?” It has recently been announced that, overall, banks fell short of their Project Merlin lending targets...

When speaking to our clients recently, it is apparent that most have started the year with a sense of cautious optimism. It’s easy to understand the source of the caution: the economy remains in a mess for the 5th year running, with negative growth back, unemployment continuing to rise and the...

Back in June 2011 I posted a blog on copyright infringement by unauthorised use of photographs.The explosion in social media and prolific posting of photographs has made it incredibly easy for photos to be downloaded and used by others without consent of the photographer holding the copyright.A rece...

You’ve got a great business idea - are you going to give it away for free? Have you just had a ‘light bulb’ moment when an idea for a great new business, product or service came to you? If so, your natural inclination is probably to go and share your brainwave with someone. Don&rsq...

More details on the autumn budget statement by the Chancellor have started to emerge and it looks like there’s some good news for SMEs. The focus of the Government seems to be on providing access to finance and support for exporting to the nation’s 5 million SMEs. Business Secretary Vinc...

The recent changes in court cost rules mean that more and more business owners are likely to be forsaking solicitors and putting together their own cases and representing themselves in court. These Litigants in Person (LIPs) have a potential minefield of rules and regulations governing court proceed...

Whenever I read the business news these days, a picture of Private Frazer from Dad's Army comes to mind: “We’re dooooomed!” But it’s not all bad news. Although net borrowing is not falling as much as the government planned, and there will still be some structural deficit by t...

Since I last blogged on the subject in November 2012 (click here to see it), there have been some changes which came into effect on 16 March 2013. The Late Payment of Commercial Debts Regulations 2013 only apply to contracts entered into on or after 16 March. You may recall that if there is no contr...

Most small businesses learn early on that there is a difference between being busy producing and selling goods or services and actually getting paid for them. The temptation to extend credit terms to customers so they can buy your goods might seem like a good idea at first but, in reality, you are l...

The first question to ask yourself when you are thinking about making a claim is who you are going to claim against. And sometimes the answer might not be as straightforward as you think, and particularly when dealing with company groups.Imagine the following common scenario. You are approached by a...

What are your plans for the future? At the present time it might be simply to hang on in there and stay in business. Despite that most business plans will include future expansion and/or exit strategies at some stage. In either case, those plans should include making sure the business is legally pre...

Non lawyers are unlikely to have head of the so-called Jackson reforms which will come into force on 1 April, but they will certainly have an impact on you if you become involved in litigation in England and Wales after that date. So what is the fuss all about and how will it affect you? This is all...

Being a business solicitor based in Northampton I was pleased to hear the news last month that Northampton had been successful with its bid to develop an Enterprise Zone and interested to find out exactly what the benefits for local businesses would be. The Enterprise Zone is a government initi...

More than you might think and yours might be one of them! Now I’ve got your attention, let me explain. Every website should have a set of policies, designed to protect you and also the visitors to your site. If you sell products or services via your website, the requirement is even greater; no...

Many businesses struggle to keep cash flowing in and delays by customers in paying their bills is often a major factor. There is a range of strategies that you can use to get in the money owing to your business - from credit checking before you close the deal, up front payments and deposits where ap...

I have blogged previously about the pros and cons of doing business without properly drawn up contracts - Contracts – insurance for business and Beware contracting by email. From 1 October 2011 the issue of how you contract becomes even more important for companies in the construction and engi...

Many businesses and indeed anyone who has suffered loss as a result of the recent riots may find that they are not insured. Most insurance policies exclude losses caused by riots.But there is a possible source of compensation, if only for damage to buildings. The Riot (Damages) Act 1886 covers loss ...

Although the noises coming from BIS (the Department for Business Innovation & Skills) are upbeat when it comes to the fight against Red Tape, we have yet to see real changes. I wonder how much is just noise (and distraction from the awful economic growth figures) and whether the government&rsquo...

It’s not just the weather that’s bad this summer; the economy’s not looking too sunny either. Bank lending to businesses continues on its downward track with the reduction in lending in June being faster than the average of the previous six months. Small businesses are particularly...

Step 1 - Identify your position • look at exactly what has happened and gather together all key documents such as any relevant contract, terms and conditions, correspondence and e-mails. • identify your key personnel who would be called upon to give evidence. Get written statements from th...

A ‘pre-pack’ is a legal process where the business and assets of a struggling company are sold immediately after it is placed into administration. As the name suggests the deal is agreed beforehand meaning that unsecured creditors (including landlords) are not given the opportunity to ob...

The Bribery Act comes into force on 1 July 2011. In February and April I blogged on the implications, but I would just like to recap on the main points and highlight 2 Case Studies. The Act creates 2 general offences, one of offering, promising, or giving a bribe, and the second of requesting, agree...

I often advise companies who believe that a director can be removed from office simply by sending Form TM01 to Companies House. Unfortunately, this does not remove a director and is unlawful unless the correct steps have been taken beforehand. The following procedure should be followed: 1. Look at t...

Back in February I posted a blog introducing you to the Bribery Act and promised an update when further news was available. The Ministry of Justice has now published its long awaited Guidance on the Act, and announced that the Act will come into force on 1 July 2011. It has also produced a very usef...

With cash flow problems in a difficult economic landscape, do not forget the Late Payment of Commercial Debts (Interest) Act 1998 which could be a useful tool to persuade prompt payment. If the threat does not work the Act provides for the debtor to pay compensation, which can be substantial. The Ac...

It wasn’t an exciting budget, and it did contain some help for SMEs, but did it go far enough? The government is beginning to realise that sustained economic growth will need to come from the SME sector but should it do more to boost this vital sector? The focus for the economy as a whole rema...

It is often said that large businesses are at an advantage when it comes to litigation as they have bigger pockets. From my experience, that’s only part of the reason. They also have more experience of litigation and know how to work with their lawyers as a team in order to minimise their cost...

Since it first came to power, the government has promised to reduce the excessive red tape that is strangling British business, and SMEs in particular. It introduced a ‘One In One Out’ system where new regulation would only be introduced where another piece of regulation could be removed...

The Bribery Act 2010 became a statute last April. It had cross party support, and was intended to fulfil our treaty obligations. It was due to come into force this April, but is now being delayed. So what is all the fuss about? And why should SMEs be concerned with it? The Act creates 2 general offe...

Are you optimistic or fearful as we enter the first month of 2011? Will it be a year of growth, consolidation, or one in which your business will struggle? I’m a firm believer in taking an optimistic view whilst also preparing for the worst case scenario. With that in mind I was researching th...

As a litigation lawyer dealing with disagreements between businesses, I frequently find I’m called upon to help business owners who have broken or ignored the terms of a legally binding contract. As with anything concerning the law, there’s a right way and a wrong way of going about this...

Current market conditions mean that many business owners and directors are having to face up to the consequences of personal guarantees they signed when they first started their business, took out a loan or signed a lease agreement. I've heard of numerous small business owners who have had thei...

As we approach the end of 2010, the economy is still very fragile. However, most of the small and medium businesses we have been talking to are showing some improvement compared to this time last year. Our clients are saying they are busier now than they have been for a couple of years, although it ...

In hard economic times commercial landlords are often fighting a day to day battle to recover rent and enforce lease covenants. So here is a resume of the available options. Rent and Service Charges 1. Distraint: the first and most used remedy is to distrain for rent. This can also apply to service ...

It’s been a long 5 months since the drama and political intrigue of the General Election. Most political debate has been about public sector cuts but, until now, no one had really known what they would entail. As far as small and medium businesses are concerned, are we really any the wiser fol...

The Emergency Budget showed that the government are seriously committed to reducing the budget deficit, primarily through public sector cuts and an increase in VAT. Predictably the politicians have since been arguing about whether this is too much too soon (with the risk of a double-dip recession) o...

Is there increasing friction between you and your fellow shareholders and/or directors? Are your board meetings starting to bear a striking resemblance to Alan Sugar’s ‘Apprentice’ ones? If so, then you need to take action and start to think tactically. The first points to consider...

I have blogged before about the coalition government's promise to remove excessive red tape and to allow businesses to nominate their most hated business laws.Well, at last our chance is here. The government has now launched its Your Freedom website where we can tell it what regulations we want to s...

According to a recent Federation of Small Businesses (FSB) survey, although the level of small business satisfaction with high street banks remains low overall, one of the most important things firms looked for in a bank was a good working relationship with their business manager. There was a strong...

I’m often asked by business owners for my advice when they are in dispute with a customer or supplier. Unlike the current message we get on everything from t-shirts to mugs to Keep Calm and Carry on! my advice is invariably Keep Calm, but don’t Carry On. If you’re in dispute with a...

The government has taken its first steps to reducing the amount of red tape which is stifling business, particularly SMEs. The Business Secretary, Vince Cable, has announced an action plan to tackle excessive regulation. It includes the following: The creation of a new Cabinet “Star Chamber&rd...

When the final Coalition Agreement was published last week, Nick Clegg announced that the government would be asking people what laws they wanted to be scrapped. It was a manifesto pledge of both the Conservatives and Lib Dems for there to be a “one in one out” policy as far as business ...

The long-awaited Full Coalition Agreement has now been published, which sets out what the coalition intends to do during its time in office. Refreshingly, it has a section specifically on business, something which the individual party’s manifestos failed to do. Unfortunately, there are a lot o...

Birmingham is officially the top European city for promoting entrepreneurship It was announced on Monday that Birmingham was number one in the prestigious European Cities Entrepreneurship Ranking for promoting entrepreneurship. This category ranks Europe’s cities as to how they promote and sup...

The new coalition government has published their Coalition Agreement. It is difficult to see what measures remain in place to support SMEs. The agreement does, however, include the following:* Cancelling some backdated demands for business rates;* Generous CGT exemptions for entrepreneurial bus...

A poll by the Federation of Small Businesses (FSB) reveals that 54% of small businesses are planning not to expand following the election result. I am not surprised. The simple fact is, that for a small business to expand, it needs confidence that customers will be there to buy its products in the f...

The magazine for small businesses and entrepreneurs, Real Business, reports that a new survey suggests a lack of education and training for entrepreneurs is holding back many people from setting up their own businesses.The research, published by the Global Entrepreneurship Monitor (GEM), shows that ...

Be pro-active. Get yourself on the front foot and ready to deal with any issues. This means understanding the terms of your lease and the type of disputes that can crop up and when they are most likely. A good start would be to sign up to our Commercial Lease Renewal service. We will highlight the i...

As election fever (as well as volcanic dust) sweeps the country, we have had a look at the manifestos of the 3 major parties to see what they promise to do for small and medium businesses. Our view is that real steps need to be taken to support SMEs through the recession and recovery process, and th...

The iconic red London bus has found itself at the centre of a dispute over copyright.Earlier this month Judge Birss QC handed down his judgement in the Patents County Court case of Temple Island Collections Limited v New English Teas Limited and Nicholas Houghton.It is an interesting case because it...

Whether you employ young people for paper rounds, to help out in a local shop or restaurant or offer them work during school holidays there are some restrictions to be aware of and rules to be followed if you employ anyone under the age of 18.So what is the law for England and Wales? Limits&nbs...

According to the DTI the number of individuals declared bankrupt in the 3rd quarter of this year (2004) rose to 9,156, 28.8% more than for the same period in 2003. It is forecast that there will be about 50,000 bankruptcies next year, compared to an annual total of about 32,000 in the last major rec...

Download a PDF version of the Cousins Business Law Guide to doing business in the UK here.In spite of the current global climate, cross border trade continues and, for any foreign owned company doing business with firms in the UK, there are some basic aspects of the UK legal system which are essenti...

With all the criticism and praise of David Cameron using his veto at the EU last week, as an expert in resolving commercial disputes, I know that sometimes walking away is the right thing to do. In negotiations and mediations, one of the ‘killer’ tactics available is the threat of walkin...

Whether you are thinking of approaching a lawyer to give advice on your business or personal matters you should make sure you find a lawyer who you feel comfortable with and whom you trust to give you good advice. Cousins Business Law has produced the following checklist. Use it to make sure you get...

My company’s got financial problems. What can I do?You know you’ve fundamentally got a good company but something’s happened to put it in serious financial difficulty. Perhaps a customer hasn’t paid a large bill, or has raised a dispute. But you’ve still got suppliers a...

You may have heard of the problem a large London law firm had when an email with their name on it went around the city and then across the world, containing apparently very detailed praise of one of the lawyer’s sexual abilities sent from the man’s girlfriend. She, shall we say, made it ...

If you’re considering removing a director, or if you are a director facing the prospect of being removed by your company, there are many tactics to consider to obtain the most favourable result. Taking early legal advice from a solicitor who specialises in directors’ duties is essential,...

Things aren’t looking good. We hear on the news every day about the credit crunch, rising inflation and economic growth stalling. Most commentators are saying that things will get worse and stay bad for some time before they get better. All this will inevitably mean that pressure will be put o...

Getting your bills paid on time is vital to the financial health of your business. It’s often quoted that at least 10% of business failures in the UK are due to non-payment or late payment by customers. Managing your cash flow efficiently could be the key to your business survival.Not only doe...

Cousins Business Law licensing specialist Nigel Musgrove has been named as a leader in his field in Chambers UK 2010.Nigel specialises in licensing and gaming law advising breweries, pubcos, hotels, pubs, restaurants and clubs. He has acted as legal adviser to a local authority during the licensing ...

There are certain things all businesses can do to right now to reduce the possibility of litigation arising (even years before you have a dispute). And they just happen to be the same things that will reduce your legal costs if litigation does occur, and also make it more likely that you will win. G...

Giving with one hand, taking away with the other? The chancellor’s pre-budget report is perhaps no big surprise in delivering both pluses and minuses for the small business owner. Along with The Federation of Small Businesses (FSB), I welcome the chancellor's decision to defer the one pence ri...

A Federation of Small Business survey showed that an average SME spends 7 hours every week coping with red tape; and a Federation of Private Business survey revealed that the cost to SMEs of compliance was £9.3 billion each year.With so many SMEs struggling in the present economic climate shou...

It’s heartening to read in the Independent that small and medium sized firms are ‘poised to lead the country out of recession.’ Our experience of SMEs – our clients – is that they are indeed innovative and determined to succeed as the Independent’s research sugges...

After my article in last month's ezine, you wouldn't expect me to be surprised by this but there seems to be a growing consensus that the worst is not yet over.This is an extract from a report on Bloomberg:U.K. banks are less than half way through posting 240 billion pounds ($398 billion) of lo...

A ‘pre-pack’ is a legal process where the business and assets of a struggling company are sold immediately after it is placed into administration. As the name suggests the deal is agreed beforehand meaning that unsecured creditors (including landlords) are not given the opportunity to ob...

There’s a new feeling in the air in certain quarters – one of optimism – and I’m sure I’m not the only one who’s feeling it. For those of us who follow all the research statistics about SMEs and the recession, this summer has been full of conflicting news. There h...

It is estimated that the first serious wave of Swine Flu will hit the UK between August and November this year with the cities being affected more than the countryside. This means that approximately 12% of the workforce nationally is likely to catch it during this period. The impact on SMEs is likel...

This is always a difficult one to call, because the circumstances can vary so much. But there is one rule of thumb. Can you afford to lose it? If you can’t, don’t do it. There must always be a significant risk in these cases that you will not be repaid. The emotional pressure is always v...

Solicitors firms outside London are showing no signs of a recovery. According to an article in The Times this week, many such firms saw their profits fall by more than a third last year. The Article reports that many firms are imposing salary cuts of 10% or so in return for longer holidays as a way ...

Yes, according to new research published today by Creditsafe. They say that 33% of British firms are planning to stop using cheques to pay other businesses within the next 12 months, and that 11% are planning to stop accepting cheques altogether! Instead, they plan to rely on direct bank transfers (...

The economic news continues with its mixture of good and bad statistics as to the state of the economy. The bad news is yesterday’s unemployment figures. These revealed that unemployment rose by 281,000 over the three months to May. There are now 2.38 million unemployed, which is the highest l...

The Cranfield School of Management has identified six behaviours that successful owner-managers possess. Why not test yourself against their list of behaviours which are about: taking control, being confident, being distinctive, being strong making wise decisions being ready to take advant...

Today's British Chamber of Commerce figures suggest that British business is over the worst of the recession.  Let's hope they've got that right.The survey data from 5,600 companies shows progress in both the manufacturing and service sectors with most key indicators improving in the last ...

It's a question that seems to be concerning many business commentators and it's one we often debate with our own clients. In the legal profession we see many small, high street legal firms struggling as parts of the business are wiped out with the collapse of the housing market and the frailties of ...

Responsibility for fire, health and safety issues rests with the operator of the business. Since 1 October 2006 it has been necessary for all businesses to comply with the Regulatory Reform (Fire Safety) Order 2005. The Order applies to all non-domestic premises in England and Wales. If you are resp...

Another sign that the recession might have bottomed out is a recent survey by the Forum of Private Business. Their survey reports that confidence in the SME sector has shown a slight improvement: 26% of respondents said the viability of their business had improved in over the past month, double thos...

If a director who has loaned money to their company resigns, or is dismissed, can they get their loan back? Many companies, especially in the current economic climate, seem reluctant to repay a director’s loan in this situation. The first thing to look at is the loan agreement itself, if there...

When can we expect a recovery? This must surely be the question all SMEs are asking themselves. Most have adjusted to the recession as best they can, costs have been cut, cash flow managed more effectively and surplus labour made redundant. It has been painful, profits have been slashed, if they exi...

In my blog of 15th September 2010, I pointed out that breaches of directors’ duties can have serious consequences for a director, particularly if a company becomes insolvent or after it is sold. It is in these situations that directors frequently find themselves facing claims to pay often-huge...

According to a recent poll by SmallBusiness.co.uk, 80% of those polled said their banks have failed to offer support; 48% said their bank had no understanding at all; 28% said they had been supportive verbally but not in action; and 10% said that their overdrafts had been cancelled. On the positive ...

The latest figures from the British Retail Consortium (BRC) suggest things aren’t quite as bleak for retailers as the media have been suggesting. The Retail Sales Monitor January 2009, from the BRC and advisory services firm KPMG, shows values increased by 1.1% on a like-for-like basis when co...

It is clear that it is SME's who are bearing the brunt of the cash flow crisis caused by late payment or extended payment terms imposed by their biggest customers. A recent report by Touch Financial, an invoice financial broker, suggested that of 200 businesses questioned over half had changed ...

There’s hardly a day goes by without a further announcement of solicitors being made redundant or being forced to accept a drop in salary. Those worst affected are the more senior solicitors, as solicitors’ firms push more trainees and newly-qualified lawyers forward to handle the day-to...

Not according to the Federation of Small Businesses (FSB) whose recent survey claims measures like the cut in VAT, pledges on payment practices and bank lending guarantees have done little to improve the situation facing small companies. Half of the 4,000 respondents in the FSB survey had experience...

Company directors are subject to so many duties that, if they are not careful and don’t take proper advice, they can easily find themselves in breach of one or more of their duties. But, in SMEs and family-owned companies, the directors and shareholders are usually the same people; so who care...

Cousins Business Law has published a Guide to doing business in the UK.  The Guide covers: The issue of jurisdiction and the laws of England and Wales Business structure Trading laws and regulations Employment and staff issues Property Handling business disputes Although written for o...

Under the new Companies Act, Companies House are entitled to charge penalties for the late filing of Annual Accounts . These will come into force on 1st February 2009. Yesterday, they announced that new penalties will be as follows: For Private Companies (Ltd's):Less than 1 month late: £150Bet...

If the last 5 years are anything to go by, businesses will continue to face pressure from new rules and regulations, especially around employment policies and practice.  Let's just hope that some sense prevails, given the current challenges faced by all firms.In the meantime, this extract from ...

Last week, a laptop and 4 computer hard drives were stolen from the Bar Council’s offices in London. These contained sensitive data on all the barristers practising in England and Wales as well as details of around 1,500 complaints lodged against barristers. The data stolen included the names,...

Our senior partner and litigation specialist, Gary Cousins, spends much of his time pursuing financial claims against directors on behalf of insolvency practitioners and in defending those claims. All too often company directors are financially ruined after the demise of their company and some of th...

The Solihull MBC Planning Sub-Committee today decided that it was “minded to approve” a 500 metre extension of the runway at Birmingham Airport. However, before full approval is to be given, Section 106 Agreements (undertakings given by the applicants) have to be agreed that will constra...

The latest Government figures on insolvency (published 7th November 2008) show an alarming increase in the number of business failures. There were 4,001 compulsory liquidations and creditors’ voluntary liquidations in the third quarter of 2008, an increase of 10.5% on last quarter and a 26.3% ...

Government plans to cut the cost of red tape must be welcomed by business owners, surely?The proposals are that budgetary ceilings are set on the amount of regulation that can be introduced by individual departments.Under the plans, a rolling budgetary limit will curtail the costs of new regulation ...

I was fascinated to read Emma Wimhurst’s article in the Independent small business section. Her views are, to say the least, controversial:"We’re all fed up with the R-word, but I believe the economic downturn has done many business owners a favour. It’s grabbed us by the prof...

Here at Cousins Business Law, we are advising more and more directors of their responsibilities in times of financial trouble and we predict we will be advising many more in the months to come.Whilst I think that everyone agrees the world has never seen anything like the present credit crunch, there...

I was reading the results of a survey from the Coventry & Warwickshire Chamber of Commerce, which suggests that businesses in this part of the West Midlands are really starting to feel the effects of the current economic climate. 77% of those surveyed reported a marked difference in sales figure...

Yesterday marked a historic day in the civil courts. Civil court judges will no longer wear wigs. I must say, it has always appeared strange to me that we expected our judiciary to support headwear dating back some 300 years. Those in favour of wigs tended to argue that they helped judges command re...

Starting a business is not easy and running it on a day-to-day basis is equally trying in today’s ultra competitive climate. It is to be expected in such a scenario for the everyday gripes and grudges of staff, customers, and management to boil over and for such issues to escalate rapidly into...

The latest ICAEW UK Business Confidence Monitor for the West Midlands reinforces many of the messages that we read daily in the national press and confirms the commentators' predictions for the impact of the credit crunch on the ‘real economy’. What started as a Financial Service se...

It now seems accepted that Sharia Courts are legal alternatives to the traditional court system in the UK – as long as all parties agree. The UK courts have for a long time now been promoting ‘Alternative Dispute Resolution’ – whereby parties to a legal dispute are encouraged...

It’s a sad fact of modern business life that we often find ourselves in dispute with a customer, a supplier, a competitor or some form of regulatory body. In all cases, it is important to face the dispute head on as soon as possible and to decide on goals and strategy. This involves taking an ...

Disputes over contracts can happen for many reasons, but so often they blow up because those involved have a different opinion on what they had agreed. You know the situation – you’ve had some work done or purchased a piece of equipment and you’re not happy with what you’ve r...

Arbitration is the oldest form of procedure for dispute resolution out of the courts. It grew up due to the need to have a forum for resolving international trade disputes, for example shipping and carriage of goods. It is only usually relevant in high value cases, as it can be just as expensive as ...

Understanding all the optionsPrior to 1999 the first choice for resolving disputes was always the court process. There was an aggressive culture of litigation, a first strike attitude, or as some would say of getting your retaliation in first. Many a litigation lawyer had a paperweight proclaiming &...

It is a sad reality of commercial life that there are now many businesses being conducted at the margins of commonly accepted business practice. By keeping ‘on the move’, they avoid debts and other liabilities and reduce their overheads putting their properly run competitors at a commerc...

(article first appeared in Cousins Business Law ezine September 2008)As the economy slows down, we can expect more business disputes than ever. Business disputes are bad for business due to the costs involved and the time that management must take in dealing with them. So what can you do t...

In business and indeed in our personal lives too, we often have to instruct a professional to advise and assist us. A professional can be anyone who holds themselves out as having specialist knowledge that we don’t possess. They might be accountants, auditors, solicitors, surveyors, engineers,...

It is not uncommon for business people to come to us for advice on a dispute once it has reached an advanced stage – usually once they receive a solicitor’s letter or court proceedings have already started. If you can nip a dispute in the bud, so to speak, it can often be resolved much m...

It is a fact about modern business life that we all need to instruct independent professionals to advise us in our business. These professional may advise us on financial matters (accountants, financial advisors, etc.), the law (solicitors, barristers, other lawyers, etc), information technology (IT...

There are a variety of alternative dispute resolution (ADR) methods available, adjudication is one only used in the construction industry. It was born in 1996 and came into play for written construction contracts entered into on or after 1 May 1998. It was a statutory cure for long running disp...

Having a business dispute go to court, whether it’s with a member of staff, a supplier or customer, must be every business owners dread. In a tough economic climate there tends to be less tolerance of mistakes and increased stress created by financial pressures. Some would say money worries ev...

The cost of litigation is always a concern for clients.  As lawyers Cousins Business Law are often asked, “If I win my case, will I be able to recover the amount I have spent on legal fees?” The simple answer is, “You can usually expect the court to order your opponent to refu...

Expert Determination is a confidential and binding process which is agreed by the parties to the dispute, either in the original contract documentation, or in a subsequent agreement. An expert appointed will reach a decision which will be binding on the parties. The advantages of expert determi...

Also known as Early Neutral Evaluation (ENE), this alternative dispute resolution (ADR) process emerged in the late 1990’s. The main difference to the other forms of dispute resolution is that any evaluation is non-binding. So why would a non-binding evaluation be of any help? The key is that ...

Fraud costs the UK economy many times more than all other types of crime taken together. The incidence of fraud is hugely under-reported, as the police have no interest in recording fraud as a crime unless they are also making an arrest. The fact is that there has been (and continues to be) exponent...

There’s a lot of fear, cynicism and mistrust in business circles about lawyers, litigation and how to achieve effective resolution of business disputes. Getting to know facts from the myths is a good way of giving yourself some confidence in what can be a very unsettling set of circumstances. ...

Unfortunately business owners are often so keen to secure a sale or start working on a big project that they fail to get all the paperwork in place.Disputes in business can happen for many reasons, but so often they blow up because those involved have a different opinion on what was agreed. You know...

The Credit Crunch is inevitably contributing to a delay in payment to businesses, particularly vulnerable SMEs. Money owed to small businesses shot up by 40% from £18.6 billion in 2007, to £25.9 billion in 2008, according to Bacs. And who knows where the figure is at this time, no doubt ...

The Insolvency Service today published their statistics for the number of company insolvencies for the 1st quarter of 2009. These show that there were a total of 4,941 liquidations in England and Wales (an increase of 56% compared to a year ago). Of these, 1,579 companies were wound up by a court (a...

As cash flow is becoming an increasing issue for SMEs, we are finding that more and more creditors are issuing Winding-Up Petitions. These can be a very effective way of getting a company to pay its debts. A Winding-Up Petition will be delivered personally to the company’s office but, unlike m...

This blog is a plea to all business owners.  Please, please, please - if you see a business dispute on the horizon, NEVER ignore it and leave it to fester.  I can tell you from nearly 20 years of dealing with business disputes that the sooner you tackle problems the better.We covered the t...

Mr Justice Arnold has called for the courts to take a more pro-active approach in curbing the fees that large commercial law firms charge for litigation. Allen & Overy represented Research in Motion, the makers of the popular BlackBerry mobile device, in intellectual property litigation against ...

SMEs are turning to litigation in ever increasing numbers to collect in debts. According to research undertaken by the Credit Management Research Centre, 2,000 such cases were brought in September 2008, compared with just 1,500 in January 2008. This is a clear indicator of generalised cash-flow issu...

The Government is considering reducing the time limit for debt collection from 6 years to 3 years.At the moment, firms have 6 years in which to issue court proceedings to collect debts. This is set to change and an announcement is expected to be made in the Queen's speech to Parliament in December.W...