Testimonial from a Relieved Director for Our Misfeasance Claims Solicitors
Misfeasance claims against directors are often brought by liquidators and usually involve an allegation that a director has misapplied money or other property of the company and/or breached his/her duties as a director. Such claims can be very sizeable and potentially ruinous. This testimonial is from a client who was facing a misfeasance claim for over £500,000, for whom our specialist insolvency litigation solicitors were able to negotiate a significantly reduced settlement that was manageable for them.
The Details of this Misfeasance Claim
“Sukhbir Mall and Alex Jones represented us in claims made against us by the Liquidator of our company, alleging an overdrawn Directors’ Loan Account (‘DLA’), unexplained expenditure abroad and for expenditure which was not reflected in the books and records of the company. A claim for over £500,000 plus interest plus costs was brought against us. We did not know what to do.
The misfeasance claim threatened our livelihoods and our extensive property portfolio as the amount of the claim was greater than the entirety of our assets. We could very literally have lost everything.”
NDP had previously acted for these clients on other matters, so they knew we had the skills and expertise to help them in this Misfeasance Claim
“NDP had acted for us on several matters in the past and we knew that they would give our case the attention it needed. We felt very confident going back to them and knew we were in good hands. They listened to us and quickly identified the issues.
Sukhbir and his assistant solicitor, Alex Jones, engaged immediately with the Liquidator’s solicitors and helped us prepare robust evidence in response to the claim. This led to an immediate reduction in the value of the claim against us and prompted the Liquidator to agree to a settlement meeting. “
A Significantly Reduced Settlement Was Agreed
“Sukhbir and Alex attended the settlement meeting with us and, after a long and fraught day of negotiations, managed to settle the Liquidator’s claim for a significantly reduced value, with us also keeping six out of our seven properties. They focused on the fact that we had significantly less than the liquidator was seeking meaning that there would have only been limited funds available even in the event the Liquidator was successful in his claim.
We highly recommend Neil, Sukhbir, Alex and the insolvency litigation team at NDP to anyone who is faced with a problem that on the face of it appears insurmountable. NDP demonstrated a real expertise in this specialist area of law that saved our business lives.
They are skilled negotiators and advised us throughout as to the likely settlement figures and the costs involved in getting there. We knew from the first meeting what our potential financial exposure might be. We have come away from a seemingly impossible situation with enough money to rebuild our lives and focus on our future.
Thank you again to the entire NDP team!” E.L. – West Midlands
Misfeasance claims can be highly stressful, as in this case, where our client felt he was going to lose everything at one stage. Our advice is to talk, quickly, to professional advisors, who are experienced in defending such claims against directors. Our specialist misfeasance solicitors have a strong track record of successfully reducing claims or removing them.
Click here to see our 5 tips for directors facing misfeasance claims.
If you are facing a misfeasance claim, the sooner you contact us, the more we are likely to be able to do to help. Call us on 0121 200 7040 or contact us for a FREE initial consultation.