Michael Williams recently successfully represented the Claimant, a supplier of veterinary products, in a County Court trial concerning whether a company acquiring a veterinary practice had agreed to pay debts incurred by the previous operator.
The Defendant disputed liability for the outstanding invoices, arguing that the debts were owed by the previous operator, which had become insolvent, and that the Defendant had not assumed responsibility for them.
Michael submitted that correspondence between the parties established a separate, legally binding agreement under which the Defendant undertook to pay the outstanding sums.
The Court accepted Michael’s submissions, finding that the parties had concluded an enforceable agreement. The Judge agreed that the arrangement did not constitute a transfer or guarantee of the insolvent company’s liabilities, but rather an independent contractual obligation undertaken by the Defendant.