The client is the director of a hospitality company operating a public house in Central London. He is facing a discrimination claim brought by six individuals following an incident in January 2024. The claimants are seeking £10,000 each, legal costs, and a declaration. Counsel confirmed that the matter has not yet progressed to court and that the initial response has challenged the claimants’ position. A substantive response is now required following the discovery of an email dated 31 July 2024, which indicated that sealed papers had been received and the claimants had until 24 November 2024 to serve proceedings.
The client expressed concern about the financial position of the company, which is currently breaking even and unable to absorb the cost of litigation. He is considering striking off the company and exiting the pub trade entirely. The freehold of the premises is owned by the brewery, which also owns the furniture. The client pays staff wages and holds a tenancy deposit of approximately £13,000. The notice period is six to nine months, but the brewery may be willing to expedite re-letting. The client has a dormant catering company and is in the process of striking off the trading entity.
Counsel advised that liquidation is a viable route but must be executed carefully to avoid personal liability or criminal sanctions. If the company is wound up, the insolvency practitioner will be obliged to investigate and protect creditor interests. There is a risk that the claimants may pursue the brewery or attempt equitable tracing if a new entity is formed. Counsel emphasised the importance of strategic engagement and noted that the claimants have not yet demonstrated willingness to proceed to trial in similar cases.
Counsel recommended proceeding with a substantive response to the claimants’ solicitors to challenge the claim and discourage service of proceedings. This may result in the claim lapsing if not served by the deadline. The client was advised to forward the 31 July email immediately and to instruct counsel’s clerk to prepare the response. Counsel also discussed the implications of liquidation and advised that specialist advice should be sought before proceeding. The client confirmed his intention to exit the business and expressed a desire to resolve the matter swiftly. Next steps will involve the client sending the 31 July email to chambers and instructing counsel’s clerk to prepare the substantive response. Counsel will then proceed to draft and issue the response to the claimants’ solicitors and continue monitoring for further developments.
Call us – Mon-Fri 8:30am – 6:30pm
+44 (0) 20 3034 0077
By submitting this form, I accept this website’s Privacy Policy