It was an abuse of process for a firm of accountants to serve a statutory demand for the amount of their bill. Vinelott J said of the situation where a demand is made for payment of reasonable remuneration for services rendered: ‘I do not say that a statutory demand can never properly be presented in such a case – that the creditor must always quantify his claim by obtaining a judgment before serving a statutory demand. There may be cases where the minimum sum due can be ascertained by reference to some objective standard. There may be cases where the rate of charging is agreed and the minimum time that had to be spent on the task for which remuneration is sought can be similarly established; or advance or periodic payments may have been agreed. But these cases must be regarded as exceptional.’
Judges:
Vinelott J
Citations:
[1994] BCC 524
Jurisdiction:
England and Wales
Cited by:
Cited – Truex v Toll ChD 6-Mar-2009
The bankrupt appealed against an order in bankruptcy made against her on application by her former solicitors in respect of their unpaid costs. The bankrupt said that since the bill was yet untaxed, it might be altered and could not base a statutory . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 07 April 2022; Ref: scu.317857