In April 2022, we acquired claims against a Director from one of our IP partners
- The background to the claims was that the director had caused his company to (a) apply for a £50,000 Bounce Back Loan; and (b) use this loan to (mainly) repay his Director’s Loan Account with the company.
- Prior to our involvement, the company’s liquidators had already challenged the loan repayment as a preference. However, the Director disputed liability and it was clear that legal proceedings might be necessary.
- With no funds in the liquidation, we agreed to take an assignment of the claims. The terms of the assignment provided (a) for any net (pre-action) claim proceeds to be shared between us and the liquidators in an agreed percentage; and (b) that if the claims could not be settled pre-action, we would be entitled to acquire (in return for a lump sum payment) the liquidators financial interest in the claims.
- Once the claims had been assigned to us, we engaged directly with the Director and his solicitors, to ensure that costs were kept to a minimum. This was important given the relatively modest value of the claims.
- Our involvement quickly resulted in a settlement offer, and after further negotiations we were able to secure a favourable settlement.
- The liquidators appreciated that we consulted with them before agreeing the settlement and were pleased with the outcome.
Please contact us if you have a claim that you would like to discuss with us. Involving a litigation funder can be of mutual benefit and bring quicker results.