Consider the following scenarios
You arrive at work on Monday morning to discover that the supplier with whom the business has been having a long-running, but relatively minor, dispute over payment, has secured the appointment of a liquidator from the court. Or, the sheriff officer appears in the reception area of your offices with a court order in the form of an interdict in his hand, which stops the business carrying out a key part of its activities.
As if the consequences of such orders are not bad enough, one of the most distressing aspects of having an order served against the company in such a way is that it often comes as a complete surprise, and has the potential to turn a business inside out.
Protection
We can help to protect you and your business by ensuring that we are given prior warning if any of these types of orders are sought against your company, by lodging a form of legal early warning system known as a 'caveat', only available in Scotland.
Caveats are lodged in the Court of Session and at each Sheriff Court where such an order is likely to be made – usually any places of business, your registered office and locations of substantial contracts. Caveats have a lifespan of one year and we help to ensure continuous protection for our clients by sending a renewal reminder before expiry. Having a caveat in place as a matter of course provides peace of mind and the major benefit of the owner of the business having the opportunity, not otherwise available, to defend the application.
Extra time
Caveats can buy you and your business some much needed time. For instance, if a caveat is lodged on behalf of a company and a petition to wind-up the company is lodged, we will be notified once the caveat is triggered. Importantly, caveats will delay the advertisement of the winding-up petition in the press, meaning the application for winding-up is much less likely to become public knowledge in the event that matters are promptly resolved.
In respect of an interdict, the extra time afforded with a caveat in place often means a negotiated resolution can be reached, avoiding a court hearing.
Caveats can also be lodged for individuals, who may be involved in a dispute. Examples include employment disputes involving restrictive covenants, property disputes with a neighbour, or payment disputes where bankruptcy may be threatened.
Risk management
Having caveats in place is a very simple, straight-talking and inexpensive answer for a business to avoid these situations and should form a fundamental part of every company's risk management strategy. We offer this service on a very competitive fixed fee basis.
Lodging a caveat is one easy way to avoid the possibility of rapid business failure or, at the very least, serious disruption.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
