Good morning,
"I've been served a statement of claim, please help me!"
Clear and honest communication is extremely important between people whether privately or in business.
This is especially important between a supplier and a purchaser. It amounts to respectful relationships. Unfortunately, I have had clients who have been served a statement of claim. This occurred due to reasons such as lack of communication, due to embarrassment, or the belief that a business can trade out of debt, or not challenging an invoice when it is believed a mistake has been made. Clear respectful communication is required in all relationships.
When faced with a situation where a party has resorted to, or wishes to proceed to litigation, first action is to discuss the situation with my client to discover the situation from their point of view. It is often the case that the problem lies in communication. Most businesses at some time will suffer cashflow problems. From my own experience as a small business owner and as a lawyer, immediate communication is essential. Very often clients believe that they will trade out of their immediate problem and will be able to pay or debts late and do not wish to make their supplier aware of their immediate problems. On the other hand, the task of running a business gets in the way of communicating a problem with the goods or a perceived error in an invoice.
In the first instance I will endeavour to settle the matter through a conversation with the creditor. The amazing thing I find, is that in most cases clarity and honesty and subsequent negotiation enables the situation to be resolved, thus avoiding the costs of litigation. The dispute is often settled by a deed of agreement including a payment plan or by having the invoice either further explained to the satisfaction of my client or amended by agreement. I have found that in the majority of cases it is the silence and lack of communication which has caused a creditor to commence proceedings.
In all relationships equal respect for each other is mandatory. Parties need to understand each other with common respect. I have seen good long-term relationships undermined by lack of honest communication. For most people litigation is last option and only undertaken when they believe they feel that they have been disrespected and a relationship abused.
If you are experiencing difficulties and need my assistance to communicate with a creditor or debtor, please do not hesitate in contacting me.
Have a wonderful day,
Regards,
Jeffrey
0419 233 670
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