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Case Study: Claims Management Company Contract Dispute - £200,000+

An entrepreneur sold her claims management business for a sum to be paid in stages over a three-year period, with the consideration linked to the performance of the business and a share of future value upon a sale within a defined period.  During the deferred period, the seller was retained as a consultant by the purchaser.

During this time, the purchaser started re-routing business to a sister company within the group, thereby devaluing the acquired company and its performance, and reducing the deferred consideration payable.  Matters came to a head and the entrepreneur was removed from office on questionable grounds.

The entrepreneur wanted to make a significant claim for damages for breach of the sale contract, as well as damages for unfair/constructive dismissal, but did not have the financial resources to take on the defendant, which was a multinational business.

Escalate has levelled the playing field and enabled the entrepreneur to launch her action. The case went to mediation with recovery made (settlement terms subject to a non disclosure agreement).

Armstrong Watson has been given the rights to use this case study by Escalate, an award-winning, accountancy-led commercial dispute resolution service.

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