Suing a company that may be in financial difficulty

--amadeus--

Hi folks,

I want to be careful how I word this because it is based on a real case that my own solicitor is dealing with but it kind of triggered a thought about the wider world.

At the moment there are any number of companies in financial difficulties. Chatting to my own solicitor she was saying that she has seen a marked change in her own practice - land and property work is at a standstill but litigation around debts has replaced it.

But there must be a point where teh advantage of suing for your money is lost simply because the client may not have the funds to pay even if you win a judgement against them. Do you approach it on a case by case basis? Is there an advantage if you are teh creditor who forces a firm into liquidation? If you suspect that a company may not have teh funds should you sue anyway to register your claim?

Like I said I don't want to discuss specifics or get advice (my solicitor is expensive enough to trust ) but I'm interested in hearing about the general principles.

Tom Young

Question 1. Yes, generally case by case;
Question 2. No advantage, but potentially you could collect under a fire sale, depends on Plaintiff; and
3. Depends on the individual case.

dazza21ie

The general principles of litigation still apply. You should only sue a party if you think they will be able to satisfy any judgement that you get. Nothing worse than spending a fortune on getting a judgement and having nowhere to go to cash it in.