Lovetts’ client is a major property services company.
It had a debt owed by one of the largest heating manufacturers and suppliers of boilers. The client was contracted to fit boilers for a third party at a fixed price per boiler throughout the term of the contract. The client’s contract with the debtor likewise provided for supply at fixed prices. The debtor did not honor that agreement, raising the price each year, but the client had to honor its agreement with the third party to avoid a breach of contract and reluctantly paid for the boilers at the increased prices.
We were asked to advise on whether it was possible to reclaim the sums overpaid which the client estimated to be around £66,000. It had attempted to recover these sums itself for over 2 years without any success. Following the advice given, it was agreed that Lovetts should negotiate with the debtor.
Lovetts wrote to the debtor setting out the basis of the claim and the law that applied. The debtor replied to Lovetts accepting liability. Lovetts subsequently obtained information from the debtor which helped the client reconcile its account, establishing that the actual amount due was in fact just over £80,000.00. In addition to the debt, Lovetts secured interest of around £4,000 resulting in the client receiving payment of just over £85,000 in settlement.