Getting invoices paid through small claims - who to claim against?

[clease]

Hi,
I'm a newby first time poster having just stumbled across this site. I'm really hoping someone has experience of my situation and can therefore help me with a problem... :)
I am a sole trader in a service industry and carry out work on an invoiced basis to larger companies that outsource specialised jobs to me. One of my better paying customers was taken over by another (not so great) company earlier this year whilst still owing several unpaid invoices (totalling about £2k). The company has sold off the arm of the company that I carried out work for but are still trading as the same name etc despite having a different address. I have sent reminders and letters which have all gone unanswered. Phonecalls I have made result in being told that since they have been taken over they are no longer liable for my invoices and there is nothing I can do. Can this be correct? I have had similar happen before - however in those cases companies have gone into administration (in some cases for a matter of hours) before being 'taken over' by another company - in those cases I haven't been paid any money at all.
I sent a letter to the Financial Director last week requesting payment once again. This was the standard 7 days notice before pursuing in court. They phoned me within a few days claiming that they want to correspond however only by email - not by letter - and to say that they are still not liable to pay for my invoices.
I'm hoping to pursue these invoices through the small claims court but obviously want to get my paperwork right.
Who is liable for this money? Is it the original (still trading) company that sold off this division to someone else or is it the company who bought it? The new company took over the premises, staff, customer contracts etc.
Where do I stand? Any advice would be appreciated greatly.

[Freelancier]

If a bankruptcy filing was involved, they may indeed not be required to pay your unsecured invoices. But since you were owed money when they filed for bankruptcy, the court should have notified you about that debt or there should be a filing somewhere that wipes the debt off their books.

I'd sue them all... the unsecured debt was with the original company, so they get named; the company that bought them, so they get named; and the company that now owns them. You don't know the inner workings of the financial transactions involved, so you force them ALL to respond in court with evidence that they are not the party owing you. Let the judge help you sort it out that way.

As for e-mail vs. letter, ignore their advice for anything legal: if it matters, certified letters are the only way to ensure proof of delivery.

Of course, I'm not an attorney, not in the UK, but this is my understanding of the US process and I can't imagine it'd be all that different over there.

Two other possibilities to consider: sell the debt to a collection agency for a percentage and make it their problem instead; get an attorney to help you and claim attorney fees on top of the debt owed.

[FlyingKite]

Sorry to hear about your unpaid invoices. I was duped by a guy called Antony Rosier ("Cheques in the post") a couple of years ago and went through the online small claims court. It was easy to do but it didn't work out for me. Lots of stress. The reason it didn't work out was they'd set up a new limited company for a new pub and had built up bad debts through it and then let it go bankrupt. From my experience the small claims courts are only of value if the person you're suing cares about the credit rating of their business. You seem to have fallen into a grey area and it may be worth getting an appointment with a citizens advice bureau. They have more clout when making phone calls and writing letters on your behalf. Good luck.

[clease]

Thank you, both, for your replies.
I've been through the mill before with this type of thing - have lost out on money when a company has filed for bankruptcy before paying (therefore got nothing) and I've also gone through the small claims court to get money back from existing customers who just didn't fancy paying (they did in fact pay after receiving court papers rather than appear in court). This time I'm just concerned that I'm not sure who my claim is actually against.
I think, Freelancier, that your suggestion of claiming against both parties (the original umbrella company that owned the arm that was sold AND the company that now owns the arm AND POSSIBLY the company name as it stood before the takeover?). The trouble is that it's £100 (I think) each time so I'm assuming that I'll need to raise 2/3 claims with a chance that I won't get anything back...
In terms of the court finding in my favour and the defendant being ordered to pay, I'm reasonably confident that they would as they are a MAJOR company that would probably not want a CCJ. I hope. However just to get that far is a bit of an uphill struggle at the moment.
The other thing that worries me is that there are so many addresses involved, and I need to make sure that the right ones are used in the claim otherwise it'll fail from the outset. Do you think I should use the current addresses as found in the online company details (and make reference to the addresses that I originally used to send the invoices too long ago) and should I address it to the 'financial director' or do I need to find out the actual name of the person/s involved?
Since it's such a large company I need to get it absolutely right as I'm sure they've got a legal team who agree their way out of these regularly on the basis that there is a spelling mistake etc.

[Freelancier]

The trouble is that it's £100 (I think) each time so I'm assuming that I'll need to raise 2/3 claims with a chance that I won't get anything back...
I'm not saying multiple claims... one claim multiple defendants. Let the court release each defendant once they prove to the court that they are not the entity with the debt.

As for the addresses, you send all legal notices to the address and agent on the corporate registration documents only. Anyone else receiving it is a courtesy; the corporation is being served with the papers, so the corporate agent receives them.

If you're going up against a legal team, it might be best to get your own attorney involved. Sometimes just a stern letter from an attorney gets you a check. It makes them think you're more serious than just someone willing to take them to small claims court.

[clease]

Ah, I see - didn't realise I could pursue one claim against multiple defendants.
The idea of using a lawyer sounds good to me, although I'm concerned that that may eat away at the money I'll trying to claw back. I don't suppose the defendant would be liable to pay legal costs as well?? Ever hopeful...
Are you aware of any particular lawyers that could help with this sort of thing or would a letter from my 'general' legal adviser do the job?
Thanks again, BTW.

[Freelancier]

I don't suppose the defendant would be liable to pay legal costs as well??As part of the claim, include attorney costs (no amount specified).

Like I said, I'm not in the UK, so I can't tell you who to call, but you're looking for an attorney who helps people pursue these kinds of civil claims. Your company legal adviser might have a name if that person doesn't handle that type of action. And the attorney will start with a letter and see if you can get your money that way without filing a claim. After that, it gets expensive for the other company, so they might just send you a check to be done with you.