Q&As

Can a remedy be obtained against a company director of a personal service company (of which the director is the single director) who has been overpaid? The company acknowledge is not entitled to the money paid in error and began repayments in instalments, but subsequently stopped them and are not responding to any communication. A third party debt order has been applied for, but the bank states there are no funds in the company’s business account.

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Produced in partnership with Ryan Hocking of Hardwicke Chambers
Published on LexisPSL on 19/08/2020

The following Dispute Resolution Q&A produced in partnership with Ryan Hocking of Hardwicke Chambers provides comprehensive and up to date legal information covering:

  • Can a remedy be obtained against a company director of a personal service company (of which the director is the single director) who has been overpaid? The company acknowledge is not entitled to the money paid in error and began repayments in instalments, but subsequently stopped them and are not responding to any communication. A third party debt order has been applied for, but the bank states there are no funds in the company’s business account.

Can a remedy be obtained against a company director of a personal service company (of which the director is the single director) who has been overpaid? The company acknowledge is not entitled to the money paid in error and began repayments in instalments, but subsequently stopped them and are not responding to any communication. A third party debt order has been applied for, but the bank states there are no funds in the company’s business account.

The underlying question in this Q&A is—who is the proper defendant to the claim? The claim would appear to be one in unjust enrichment, with the unjust factor being a mistake. Given that the payment was made to the company, it is the company

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