Civil Litigation Case Study: KG Ltd's Claim and Enforcement Options

This case study analyzes a civil litigation scenario involving KG Ltd and Mr. Khan, focusing on debt recovery for a software package. KG Ltd is seeking to recover £14,000 from Mr. Khan, who has only paid £2,000 of the agreed £16,000. The analysis covers the pre-action steps KG Ltd should take, including issuing a demand letter and complying with pre-action protocols. It also discusses the meaning of disclosure and the relevant documents, such as the countersigned quote and payment receipts, and drafting particulars of claim, outlining the factual basis of KG Ltd's claim. Furthermore, it explores various enforcement options available to KG Ltd if they succeed in their claim, including direct contact, legal proceedings in the High Court, and the potential for out-of-court settlement. The case study highlights the importance of evidence and the potential for the court to award interest and compensation for incurred expenses.

Civil Litigation

TABLE OF CONTENTS
Question1.........................................................................................................................................1
Steps KG Ltd should take before issuing proceedings................................................................1
Meaning of disclosure and documents of it.................................................................................1
Drafting particulars of claim........................................................................................................2
Options available with the client for enforcement if KG ltd succeed in the claim......................3
Question 2........................................................................................................................................4
Analysing the statements.............................................................................................................4
REFERENCE...................................................................................................................................7

Question1
Steps KG Ltd should take before issuing proceedings.
Before going into legal proceedings written demand letter should have been issued by KG
limited which is the standard letter given to me Khan before claim. This letter is helpful in
dispute resolution. In the demand letter KG limited should have asked mr Khan that why the
money is not paid as per the agreed deadline1. This letter should have also mention the steps
which KG limited can take if mr khan will not pay the remaining amount which is £14000. KG
ltd can file civil claim if the other party will not pay the remaining amount. Under r 1.3 CPR
1998, company should carry pre action requirements which means that they should have take
approval from the legal ministry.
Demand letter should have contain the name and address of the party to which letter has to send.
KG ltd can further mention in the letter that it is the debt claim for which they cam also sue mr
Khan if they will not pay the amount on time2. KG ltd also have the copy of quote which has
been countersigned by mr Khan. It is important that KG ltd put efforts to settle down this case
out of the court only. In this case it is important that mr Khan should pay the amount which is
agreed by them3. It is important to comply with pre action protocol and in the pre action
protocol involve permission from ministry of justice.
Meaning of disclosure and documents of it.
Disclosure-
disclosure means disclosing all the real information in front of other party. Disclosure as per R
31.2 is the fundamental principle and helps in avoiding future confusion and conflicts4. Before
entering into any contract it is important that two parties which is present in the contract should
1
Chase, Oscar G. and et.al., 2017
2 Bicovny, Wendy and Arthur, 2021
3 Dodson, Scott., 2021
4 Ivancevic, Katarina., 2021
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have disclose things which are necessary. Disclosure is the important term when used in
contract. As contract is formed after all the information gets disclosed.
The documents which KG ltd will going to disclose in this action is the copy of quote which is
countersigned by mr Khan. By showing this copy company can prove that Khan has agreed to
pay the amount earlier but now he is not paying the amount as per the agreed time. From the
total amount of £16000 Mr. Khan has paid £2000. so the receipt of payment which is give by
KG ltd to mr Khan for paying £2000 should also presented . So that it can be proved that he has
already paid £2000 but the remaining amount £14000 is still left for the payment. It is the fast
claim track because the remaining amount is more than £10000 and claim which exceeds
£10000 is considered as multi track or fast track. so that is why disclosure is applied in this
case5. As per part 31 disclosure is not applied to small claims track and under 31.6, disclosure is
applied in fast track and this case also comes under fast track claim.
Drafting particulars of claim
Particulars of claim-
in the particulars of claim it consists of the claimant statement of the case. It further consists of
the factual basis on the basis of which claimant takes claim from the defendant6. Claimant is the
person or the party which files the case against the person who has breach the contract and
defendant is the person on which legal action has taken by the claimant because of the breach of
contract.
KG Ltd
Mr. Khan and both have relationship of buyer and supplier.
Situation-
KG Ltd sells software package which helps business in processing debts more effectively. For
KG ltd mr khan has purchased this software and agreed on the quote of paying £16000 for
using the software7. The written quote is also countersigned by the opposite party which is mr
khan. He has paid £2000 already and said that the remaining amount will be paid by him
afterwards. After calling for many times to mr Khan by the company also he didn't gave
remaining amount. After than that mr Khan have stopped picking phone calls of KG ltd.
5 Varadarajan, Deepa., 2017
6 Chase, Oscar G. and et.al
7 Koloğlu, Orhan Şener., 2017
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Problem-
exactly the problem is related to the payment which is due by mr Khan. Now he is not
attending phone calls which is done by the company. As per the discussion mr khan should
have make complete payment because he is already using software of the company. Now
company is facing problem because they are not able to recover the remaining amount.
Problem has become major because there is no conversation from mr Khan and company is not
having idea that he is willing to pay the remaining amount or not.
Losses to company-
if mr khan will not pay the remaining amount which is £14000 than company has to bear loss
of £14000 which is big amount. Although company can file case against mr Khan. As now mr
khan is defaulter because he is not paying the amount. Company can also ask compensation
form mr khan. There is possibility that court can ask mr khan to pay the remaining amount with
addition of interest8. Interest can be charged by khan because he did not pay agreed amount on
time and because of him company has to go through inconvenience. Company can also claim
for the expenses which is incurred by them on the account of filing the case. Basically court can
ask mr Khan to pay the penalty for not paying money on time and also they have bothered
company by not giving reasons to them for non payment. As company have enough proof in
the form of countersigned quote court which they can present in the court.
Options available with the client for enforcement if KG ltd succeed in the claim.
Legal proceedings is the time consuming process and also require money. So directly going for
Legal proceedings the option of directly contacting mr Khan is better. As it will give idea to the
defendant that if they will not make the payment than company will file case on him9. Nobody
wants to go through Legal proceedings because it is lengthy process and normally people agrees
to went for settlement outside the court So it is better to give warning to mr khan that case can
be filed on him by the company if he will not pay the remaining amount.
8 Whitehouse, Lisa., 2019
9 Peters, 2019
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If after giving several warnings also mr Khan is not paying the remaining 14000 then they can
file case in the high court against mr Khan. KG ltd also have the proof of quote which is signed
by khan which is present in the court as the proof. Court needs evidence and KG ltd have
evidence against mr Khan. If after giving prior notice also client is not listening and not paying
and the last option is going directly to the court for recovering the payment. There are many
companies which have decided to solve case outside the court only because when the judgement
is given by the court then it takes much time. So it is better outside the court settlement if parties
agrees to do so.
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