Agency mistake means it refuses to give money

[stek]

Company A was told to stop trading as we were told we were effectively trading insolvent and were told to stop. The agency then resupplied a new contract to Company B. We signed a non invoice deal, so we didn't have to supply invoices. However, there is a paper trail from the agent showing dates and acknowledging the company change. I have several emails from the company admitting they had made the error.

I spoke to the FD of said company on the motorway at 85 and he got shirty as I had raised my voice, which was what I needed to do to make sure he heard me. He said tough tulip, as good as. Said if they hadn't have backdated the contract, I'd have lost the money anyway, so to shut up and deal with it.

As far as I am aware, I was honest with them from the get go, I kept them apprised of the issues at all times, have fully complied with all of their demands, but I was simply told TS, which is unacceptable in my view. I have acontract with them, had, which was cast iron. I am not wearing the £3k loss on their mistake as lets remember, it wasn't mine.

Sorry mate but it sounds like nothing's ever your fault. Try and take a step back, do a bit of cow-towing and either take it on the chin, or use a bit cleverness and guile to pursue this instead of just blaming others?

[MarillionFan]

Effectively Company A has money in it's bank account that does not belong to them.

If you were still in charge you could refund it to the agency, who then could repay you. By getting in someone to go through insolvency then they are in charge. (Can you speak to them?)

Now most contracts will insist that the contractor has a solvent company. If not they can terminate the contract immediately. You will see it in all contracts. So you were lucky not to have had that done.

The agency did you a favour by allowing you to change companies. I can see why they won't pay again, but legally they have to. If I was you I would see what you can do to get Company A to refund the monies that they are not entitled to.

Lastly. I have no idea how you managed to make a LTD company insolvent from a contracting perspective. Assuming you are only contracting, taking out more money then is due and then closing it down to run away from your obligations is pure cowardice and stupidity. If it was for some other reason then maybe I can sympathise.

[thunderlizard]

In the agency's shoes, I'd be acting as they are. Until I'd been refunded by Honest Joe's (A) Ltd, I wouldn't be giving any money to Honest Joe's (B) Ltd. To be weighted against their little mistake in paying the wrong account, is your massive mistake in having been trading insolvently.

[Boo]

Sorry mate but it sounds like nothing's ever your fault. Try and take a step back, do a bit of cow-towing and either take it on the chin, or use a bit cleverness and guile to pursue this instead of just blaming others?

Don't agree with this at all. The OP has admitted the accountancy error but the agency has been fully informed and has paid the wrong company through their error. They don't have a leg to stand on and need to pay Co. B or face the consequences.


Boo

[Boo]

To be weighted against their little mistake in paying the wrong account, is your massive mistake in having been trading insolvently.

Not really : the OPs error regarding Co. A has been of no consequence to the agency, the problem they are suffering is entirely down to their own mistake in paying the wrong Co. They are entirely at fault and need to man up here...

Boo

[BolshieBastard]

Company A was told to stop trading as we were told we were effectively trading insolvent and were told to stop. The agency then resupplied a new contract to Company B. We signed a non invoice deal, so we didn't have to supply invoices. However, there is a paper trail from the agent showing dates and acknowledging the company change. I have several emails from the company admitting they had made the error.

I spoke to the FD of said company on the motorway at 85 and he got shirty as I had raised my voice, which was what I needed to do to make sure he heard me. He said tough tulip, as good as. Said if they hadn't have backdated the contract, I'd have lost the money anyway, so to shut up and deal with it.

As far as I am aware, I was honest with them from the get go, I kept them apprised of the issues at all times, have fully complied with all of their demands, but I was simply told TS, which is unacceptable in my view. I have acontract with them, had, which was cast iron. I am not wearing the £3k loss on their mistake as lets remember, it wasn't mine.

Im with you. Take the agency to court then name and shame afterwards.

Whichever way you look at it, the agent has ****ed up. Swellen is talking bollocks imo. The agency has a duty of care to make sure it pays the right company. Irrespective of whether there's human error involved, they have to pay the right company. No if's or buts or maybe human error!

Hope you **** the agency over.

[MarillionFan]

Im with you. Take the agency to court then name and shame afterwards.

Whichever way you look at it, the agent has ****ed up. Swellen is talking bollocks imo. The agency has a duty of care to make sure it pays the right company. Irrespective of whether there's human error involved, they have to pay the right company. No if's or buts or maybe human error!

Hope you **** the agency over.

No idea what planet you guys are on. He's the same director in both companies, who's phoenixed his first one, say's he can't refund the money but wants them to pay it again to company b of which he's a director.

So yeah, in practice they've ****ed up. In theory though the OP is pulling a fast one. Not only would i now tell you to take a running jump, I'd also instigate legal proceedings. You broke the first contract by trading insolvently.

How did you go insolvent? I'm intrigued.

[Wanderer]

The reason for the OP ceasing trading may be intriguing but it is irrelevant.

The OP didn't set out to defraud the agency, the agency paid the money to the wrong company so they have to sort it out.

The agency should talk to the bank and get them to reverse the payment.

[d000hg]

The agency knows full well both companies are the same person, trading through a Ltd purely for tax reasons. As such, to them you're just playing silly buggers and it's crazy to think they'll pay you twice.
If company A was being tied up, you should have stopped them taking payments. As it is, bounce the payment back or instruct the agent to retract the payment.
They might be two separate businesses legally but we all know the real story.

As for the contract being canned... I can't see you can do anything unless they breached a contract. You're a pain in the arse (whether it's your fault or not, that's fairly unimportant) and as such they clearly want to replace you with someone who isn't going to tock the boat.

[PSK]

The agency may well be in breach if they agreed to the revised contract and you 'invoiced' correctly (a few side legal issues but let's not go there here). Previous posters have mentioned 'phoenixing' and I thought it might be helpful to mention the following -

However, and as ever it will depend on the detail, if your firm A is a limited company and you are a Director of a limited company then you owed that company some legal duties. I am probably misunderstanding but when you said the agent mentioned 'backdating' a contract then in the context of insolvency and presumably creditors not receiving all the money they are owed then you might have potentially a bit of a risk and a choice whether to push this. If some work was done by company A before the date of 'backdating' then the net effect of telling the agency company B has done the work might have been to move company A's money out of company A. That might be a step further than 'phoenixing' and you might end up in hot water. As I said, I'm probably misunderstanding things but the agent might decide to argue that they thought something fishy was going on or realised payments prior to the particular date of the change 'belonged' to company A rather than company B. As I said I've probably misunderstood and perhaps no work was done before company A went insolvent and company B is 'entitled' to all the money. Insolvency practitioners can sometimes be a bit suspicious all the same. As ever, this is not legal advice and you should not rely on it.