Agent gone bust

[DS23]

....If that happens, the timesheet might prove quite a valuable thing to have.

exactly. for those lucky enough to have timesheets that have not yet been processed into invoices and passed onto the agency - you have an opportunity to cut a deal and get some monies owed.

armed with a letter terminating your contract and absolving owed monies (which you will need to get from the administrators) the client may allow you to process invoices related to the past timesheets through andother agency or direct.

have a discussion with the client hiring manager, legal and hr depts and lay it all out - they will probably try and help you but won't be able to do anything until the adminsitrators officially terminate things. the wording of the letter needs to be agreeable to all parties - get it thrashed out asap.

then there is the palm greasing. you will need to get the administrators to be agree the payoff without the hassle of persuing your timesheet. you might need to lower your rate so that the client agrees to it... who knows. if the client want another agency to process the invoices - get talking to that agency and get them to do the donkey work - after all this will be revenue for old rope for them.

[perplexed]

Latest rumour is Pendragon "directors" ( using term loosely ) in Sanderson offices, discussing a sale - I'd assume trying to get jobs / sell any databases, leads, contracts.

[malvolio]

Latest rumour is Pendragon "directors" ( using term loosely ) in Sanderson offices, discussing a sale - I'd assume trying to get jobs / sell any databases, leads, contracts.

Amusing since Pendragon were formed by some ex-Sanderson people!

[perplexed]

Amusing since Pendragon were formed by some ex-Sanderson people!

Thought Maxine et al were Computer Futures? Probably me getting them mixed up.

Just confuses me even more - dealings with Sanderson before have been great, the agents of theirs I've dealt with have been superb.

[Not So Wise]

Point taken, but let's say that we do and promptly draw up a contract between my ltd and client. Wouldn't that constitute me breaking the contract with agency? I never studied British corporate law, so I'm obviously out of my depth here, but if they are under administration, don't they have protection against their creditors (me) but still have all the rights towards their debtors (client)?

Both you and client would need to read your contracts, most contracts have clause's that render the contract null and void if any of the partys go into liquidation

Note: Common for the agency/contractor contract to only mention contractor going into liquidation, but agency/client contract normally covers both

So you're saying that if the agency sued me based on the above events, they wouldn't stand a chance in court?

Agency cannot really sue you for anything, they owe you remember?
It's the client that has to cover their ass

[dack]

Both you and client would need to read your contracts, most contracts have clause's that render the contract null and void if any of the partys go into liquidation

If this existed then the contract would be null & void from the date of liquidation and couldn't be back dated to submitted invoices.

[dack]

My final last ditch cunning plan, thoughts appreciated.


Let’s take the scenario that Agency are still trading but have terminated their contract with ClientCo. Agency issue an invoice to ClientCo for work completed to date. They also inform ClientCo that they won’t be passing on payment to the contractors (contracts terminated) as they need the money to pay off debt.

The financial hit to the contractors is such that the majority declare themselves bankrupt and\or quit contracting and are no longer able to provide services to ClientCo. ClientCo face a major supply issue at a project critical point leaving them unable to deliver projects on time and within budget.

Would ClientCo pay the outstanding invoice?

It seems to me that given this scenario, ClientCo would have solid grounds to challenge the payment due as this would result in a severe disruption to their business. Instead, ClientCo offer to pay Agency their % earnings and back pay the contractors direct thus ensuring minimal disruption to service.

ClientCo wouldn’t have to prove any disruption, contractors not being paid 13+ weeks would be evidence enough.

On what legal grounds could Agency refuse this offer? There would be no loss of earnings and no loss of future earnings as Agency has terminated their contract with ClientCo.

The fact that Agency has been liquidated does not strip ClientCo of it's right to challenge an invoice. All T&C’s remain in place and the rights of the liquidator to pursue payment are no different to the rights that Agency had.



If SSC challenged all outstanding payments to liquidators on the grounds outlined above on and offered to pay the 12% earnings instead, on what basis could Burton Sweet legally reject this?

[malvolio]

Really don't understand the problem, do you?

The agency is no more, it is gone to meet its maker, it has joined the choir invisible. The receivers are only intersted in pulling in enough money to pay off the late agency's creditors, of which you are one but an awful long way down the list. If you give the receivers your money on behalf of the late agency and its no non-existent contract, all you're doing is help pay someone else's debt. Forget Pendragon, they are not part of your problem.

TALK TO THE B****Y CLIENT AND SORT AN ALTERNATIVE!

[DodgyAgent]

Really don't understand the problem, do you?

The agency is no more, it is gone to meet its maker, it has joined the choir invisible. The receivers are only intersted in pulling in enough money to pay off the late agency's creditors, of which you are one but an awful long way down the list. If you give the receivers your money on behalf of the late agency and its no non-existent contract, all you're doing is help pay someone else's debt. Forget Pendragon, they are not part of your problem.

TALK TO THE B****Y CLIENT AND SORT AN ALTERNATIVE!

The receivers Bill

[perplexed]

Well, to be more accurate, it's still breathing, just about but is terminal.

Client previously "enforced" a part solution - invoices made out to client, submitted to agency who forwarded them on. Agency then received commission, client paid direct.

The uncertainty is the way forward.