Letter OF Demand PDF

Preview

Summary

Level 15, 251 Adelaide Terrace PERTH, WA 1 March 2018 SBM reference: Backshell Pty Ltd Level 6, 254 Georges Terrace PERTH, WA Without Prejudice Save as to Costs ATT: Company Secretary Dear Company Secretary, RE: LETTER OF DEMAND FOR OUTSTANDING We act for Pascoe Electrical Services Pty Ltd (ACN 685 ...

Description

Level 15, 251 Adelaide Terrace PERTH, WA 6000 1 March 2018 SBM reference: Pascoe18/SBM/SC/ Backshell Pty Ltd Level 6, 254 Georges Terrace PERTH, WA 6000 Without Prejudice Save as to Costs ATT: Company Secretary Dear Company Secretary, RE: LETTER OF DEMAND FOR OUTSTANDING $400,000 We act for Pascoe Electrical Services Pty Ltd (ACN 685 203 596), on instruction from its managing director, Dean Pascoe. We are writing this letter to you in relation to the contract between Pascoe and Backshell Pty Ltd (ACN 619 449 096), for electrical work. We are instructed that in 2017, Mr Pascoe (Pascoe Electrical Services Pty Ltd) and Backshell Pty Ltd entered into a contract for electrical work to be completed in March 2018. The total agreed value of work to be completed by Pascoe was over $600,000. Invoices for completed work were issued on 12 January 2018 and 12 February 2018. Each invoice amounting to $200,000. Both invoices remain unpaid. A condition of the contract was that invoices were to be paid within 14 working days from it being issued. Pascoe has fulfilled his contractual obligation by commencing electrical works as per the contract. Backshell’s conduct constitutes repudiation of the contract. Backshell’s failure to pay invoices within 14 working days, renders Backshell in breach of the 14 working day term, as a condition of the contract. Backshell’s intention to withdraw from the contract, without paying invoices is a clear statement that Backshell does not intend to fulfil their

1 768

obligations under the contract, in its agreed original terms. Pascoe accepts Backshell’s repudiation and Pascoe will cease rending any further electrical services for Backshell. Pascoe demands payment of due debt of $380,000 in accordance with the contract of [insert date]. The sum of $380,000 with [insert amount] commercial interest; that being 6% from [insert date] to [insert date] pursuant to section 31 of the Supreme Court Act Western Australia 1935 (WA). This is to be paid into the SBM Legal Trust Account by no later than 30 March 2018. Pascoe intends to rely on this letter as a Calderbank offer. Pascoe makes a genuine offer of compromise and is willing to accept Backshell pay a lesser amount of $380,000 instead of the full outstanding amount of $400,000. This offer is made pursuant to the principles established in Calderbank v Calderbank. If this Calderbank offer is unreasonably rejected Pascoe will seek costs, on an indemnity basis, if this matter proceeds to court. Please acknowledge, failure to repay or confirm your decision to repay will compel us to pursue legal action to secure repayment, as per the instructions from our client. If so, you may be liable for any court costs, lawyer fees and damages, including punitive damages. Please note we reserve the right to rely on this correspondence if this matter proceeds to court. Thank you for your attention to this matter. I will expect a response to this letter within seven business days. Sincerely,

Stephen Shaw Solicitor SBM Legal

2 768

IN THE DISTRICT COURT OF WESTERN AUSTRALIA HELD AT PERTH CIV 2357 of 2018 B E T W E E N: Plaintiff

Pascoe Pty Ltd (ACN 685 203 596) and

Defendant

Backshell Pty Ltd (ACN 619 449 096)

STATEMENT OF CLAIM

Date of Document:

1 March 2018

Filed on behalf of:

The Plaintiff

Date of Filing:

2 April 2018

Prepared by: SBM LEGAL SBM Legal Level 15, 251 Adelaide Terrace PERTH, WA 6000

Telephone: +61 86555 297 Fax: +61 86555 2971 Email: [email protected] Ref: Pascoe18/SBM/SC/

The parties 1. The Plaintiff is a corporation incorporated under the Corporations Act 2001 (Cth), in the state of Western Australia, and at all material times traded as Pascoe Electrical Pty Ltd (Pascoe). Its principal place of business is 120 Petra Street, Bicton WA 6157. 2. The Defendant is a corporation incorporated under the Corporation Act 2001 (Cth), in the state of Western Australia, and at all material times traded as 1 768

Backshells Pty Ltd (Backshell). Its principal place of business is Level 6, 254 Georges Terrace, Perth, WA 6000.

Nature of the Businesses 3. The Plaintiff is a business providing electrical services. 4. The Defendant is a business dealing in property development.

The Contract 5. In [insert date] 2017, the Plaintiff entered into a contract with the Defendant (the contract). 6. The Plaintiff was contracted to render electrical services to the defendant. 7. The terms of the contract are inter alia as follows: PARTICULARS a. The Plaintiff was contracted by Backshell to render electrical services for a development project; b. The Plaintiff’s services were to be rendered from September 2017, and work to be completed in March 2018; c. The agreed cost for work to be completed was to amount to over $600,000; d. The contract contained a term that payment of invoices was required within 14 working days of the invoice being issued, as a condition of the contract. Repudiation of the Contract 8. On 1 February 2018, the Defendant failed to pay the Plaintiff’s first invoice, as per the term in the contract. 9. On 2 March 2018, the Defendant failed to pay the Plaintiff’s second invoice, as per the term in the contract. 10. The circumstances of the Defendant’s repudiation are as follows; PARTICULARS a. On 12 January 2018, the Plaintiff rendered its first invoice of $200,000; b. On 12 February 2018, the Plaintiff rendered its second invoice of $200,000; c. Both invoices remain unpaid after 14 working days of being issued; d. The defendant breached the 14 working day term as a condition of the contract; e. The invoices still remain unpaid;

2 768

f. Without payment from the Defendant, the Plaintiff has no choice but to accept the Defendant’s repudiation; withdraw from the contract; and cease to provide further electrical services for the Defendant. 11. By conduct expressed at paragraphs [8]-[11] above, the Defendant has repudiated the contract as it failed to perform its obligations in accordance with the contract.

Loss 12. The Plaintiff has suffered the loss of earnings described at paragraph [10] above, being $400,000 worth of work completed.

Claims for Relief AND THE PLAINTIFF CLAIMS: (i) (ii) (iii) (iv)

The sum of $400,000; Interest at the rate of 6% per annum from [insert date] until Judgement or at other rate for such other period as this Honourable Court deems fit; Costs; Such other relief that this Honourable Court deems fit.

Dated 1st day of March 2018. _____________________ Stephen Shaw Solicitor SBM Legal

Costs Date

Time

Work Performed

Billed time

Billed amount

25/02/2018

1:00 pm

Drafting Letter of Demand

One hour

$170

26/02/2018

3:00 pm

Drafting Statement of Claim

One hour

$170

28/02/2018

5:00 pm

One hour

$170

  

3 768

Finalised Statement of Claim Proofreading Letter of Demand Proofreading Statement of

Claim 

Changing formatting of Statement of Claim to meet the requirements Total: 3 hours

4 768

Total: $510...