We recently worked with a large tool and equipment company in a professional capacity to resolve an interim application made by the Defendant in a matter involving a large debt.
Background
The Defendant submitted an application in response to the Claimant’s request to have a stay lifted in Court proceedings. The stay needed to be lifted so the Claimant could proceed with a high-value debt claim against the Defendant.
Upon considering the Claimant’s application, the Court ordered the stay to be lifted. However, the Defendant then made a further application to set aside this order, aiming to keep the stay in place and prevent the Claimant from pursuing the debt.
Key Developments
- The Defendant’s application was listed for a hearing.
- Just days before the hearing, the Defendant offered to withdraw its application on the basis that both parties bear their own costs.
- By this stage, the costs of defending the Defendant’s application had already been incurred, and it was clear that the Defendant’s application had little merit.
Arguments and Outcome
- The Claimant argued that failing to lift the stay would cause undue prejudice, as they would lose the opportunity to pursue the high-value debt.
- The Claimant also highlighted that it would not be in the interest of the Overriding Objective for the Defendant to succeed.
- A costs schedule was served on the Defendant, and they were invited to consider the Claimant’s costs.
- The Defendant ultimately agreed to settle the majority of the Claimant’s costs and withdrew their application.
Key Achievements
The stay remains lifted, allowing the Claimant to pursue the outstanding debt.
Recovery of legal fees from the Defendant ensured that our client was not out of pocket.
How We Achieved This
✔ Engaging with the Defendant early
✔ Standing our ground when we had strong prospects of success
✔ Highlighting the lack of merit in the Defendant’s application
✔ Pursuing cost recovery to protect our client’s financial position
This case highlights the importance of strategic engagement and persistence in legal disputes, ensuring our client could move forward without unnecessary financial burden.
Rachael Hargreaves
Head Of Commercial Litigation