Case History – TSS v AJG

Background

TSS are a scaffolding contractor who erected scaffolding for a company LHDL that was renovating a Grade II listed building and other adjacent buildings. AJG was a director of LHDL. LHDL did not settle its account with TSS for a period of several months and eventually LHDL went into liquidation.

Actions

ICL Commercial Law was instructed to advise TSS. ICL Commercial Law attended the creditors’ meeting of LHDL and questioned AJG who admitted under questioning that he had engaged the services of TSS at a time when he knew, or ought to have known that LHDL would not be able to pay TSS and that the company would most likely fail. ICL Commercial Law considered this to be a tort of deceit which rendered AJG personally liable for the debt to TSS.

Arrangements were agreed between the parties for TSS to strip their scaffolding and remove it from AJG’s site. Immediately prior to the arranged date to remove the scaffolding AJG produced a finance offer from UKAFPLC demonstrating that AJG now had sufficient finance in place to enable him to settle his debt with TSS. A payment programme was agreed between TSS and AJG. AJG did not honour the payment arrangement.

ICL Commercial Law commenced bankruptcy proceedings to cover the debt of LHDL and AJG.

Result

AJG was adjudged bankrupt.

ICL Commercial Law is currently assisting AJG’s trustee in bankruptcy to recover assets that have been put beyond the reach of AJG’s creditors.