Advice to a client facing a claim for breach of contract

Rachel’s client was a businesswoman whose company was being sued by someone who claimed there had been a breach of an agreement for the company to use the Claimant’s consultancy services. The client did not feel that she had done anything wrong and wanted to defend the claim at court. However, her company was in the early stages of start-up and had very little money or assets.

Rachel analysed the case against the company and concluded that her client’s defence was more likely than not to fail. She explained in detail her reasons for reaching that view and was happy to answer the client’s questions and make sure that she understood Rachel’s advice.

Rachel offered the client pragmatic advice and was keen to help her avoid a situation where the company was given a money judgment which would have to be paid within 28 days, as the company did not have the funds to do this.

The client took Rachel’s advice on board and was able to negotiate a settlement with the Claimant. Although the company had to pay some money to settle the claim, it was less than it risked having to pay had the matter gone to trial and, crucially, it was able to pay the money in staged payments. This meant that Rachel’s client was able to secure funding for the payments, as well as avoiding a court Judgment against it.