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View Full Version : Defunct partnership - Small claims.



norvin
05-11-2009, 17:05 PM
We let my wife’s house to a friends’ husbands’ company. He in turn sublet the property. The tenancy agreement was signed by this man on behalf of his property company, the company was named as the tenant on the agreement. The six month period has long since expired and the tenancy became a periodic tenancy. His tenants left giving him very little notice, he tried unsuccessfully to find new tenants for two months, and then told us that he wished to give up the tenancy. Even though there were issues with the state of the premises and a missing fridge, we agreed that if he paid the rent up to that date, the beginning of August, we would call it quits and forgo the one months notice. He paid some of the agreed outstanding rent and returned the keys. After receiving excuses but no payment for a while, we wrote to him stating that if he gives notice to quit in writing and repays the outstanding rent, we would still accept the lower amount, but if he forces us to go through the small claims process we will pursue him for the outstanding amount plus the rent for the one month notice he should have given to end the tenancy. He still owes £450 of the agreed amount and has not paid anything for well over a month and will not commit to a repayment schedule. When pressed he states that he will pay “eventually”, but we have lost confidence in his sincerity. He also states that as he has wound up the company, the small claims process will not work as the company does not now exist, but will pay the agreed amount as a matter of honour. We have checked Companies House and his company was not registered as a limited company and was probably a partnership. We have now decided that enough is enough and it is time to fill out the forms to launch a claim. My question is; would we be able to take him through the small claims process, even though his company does not exist? I am sure that the threat of a CCJ will be enough to make him cough up in order to protect his credit rating.

Telometer
05-11-2009, 17:14 PM
When you say "Company" what exactly does it say on the tenancy agreement that the T is?

jeffrey
05-11-2009, 17:20 PM
Yes, was T the man, a partnership, or a company?

norvin
05-11-2009, 17:53 PM
T on top part of agreement is "X&X property" address given is the persons address. Tenants signature on bottom of form is persons signature, no mention of company.

jeffrey
05-11-2009, 17:57 PM
OK. Unless 'X&X property' exists, under that name, the tenant is non-existent. A partnership is not a legal entity, except under Scottish law; it holds property only in the partners' names; no such names appear; so I believe the letting to be VOID.

norvin
05-11-2009, 18:07 PM
Thank you Jeffrey.
Are you saying that as no-one was named as a partner the tenancy was never in force, or that the tenancy was voided when they decided to cease trading? Either way, it looks as if we cannot take action to recover the debt.

Telometer
05-11-2009, 18:11 PM
Hang on... What partnership?

As OP is incapable of using apostrophes, we have no idea how many persons or tenants there may be.

Was it in fact this chap's sole trade?

An LLP is a legal entity....

jeffrey
05-11-2009, 18:17 PM
An LLP is a legal entity....
Yes- so we need to know:
a. the legal status (if any) of "X&X property"; and
b. whether it exists as such, under this name "X&X property" - just like I posted earlier.

jeffrey
05-11-2009, 18:23 PM
Are you saying that as no-one was named as a partner the tenancy was never in force, or that the tenancy was voided when they decided to cease trading? Either way, it looks as if we cannot take action to recover the debt.
The former, unless "X&X property" actually existed (as a Limited Liability Partnership or a company [limited or unlimited]) on Tenancy Agreement's date.

westminster
05-11-2009, 18:29 PM
Who paid the rent? What name was on the cheque(s)?

norvin
05-11-2009, 18:31 PM
I have only dealt with one person, although the other initial in the company name suggests another person, probably, but not necessarily, his wife. I have no other information on his other business activities except that he is still active in the same line of business.
I can confirm that tenants name on the agreement is 'X&X property'. Name slightly changed to protect the guilty. There is only one signature on the bottom of the agreement.

norvin
05-11-2009, 18:38 PM
The Company was in existance on the date of signing of tenancy. Person told me that he has since ceased trading under that name. Company does not show up in a Companies House search, I don't know of any other method of verifiying its status or existance. Rent was paid by direct debit into our bank account under the name 'X&X property'.

jeffrey
05-11-2009, 18:45 PM
The Company was in existance on the date of signing of tenancy. Person told me that he has since ceased trading under that name. Company does not show up in a Companies House search, I don't know of any other method of verifiying its status or existance. Rent was paid by direct debit into our bank account under the name 'X&X property'.
If the company was still T at the point when a liquidator was appointed, the tenancy vested in the liquidator. He/she probably disclaimed it, thereby ending your enforcement rights. Note that the company could never have been an AST tenant!

norvin
05-11-2009, 18:50 PM
Thank you very much for your time Jeffrey. You have saved me the small claims fee.