How to sue a company under UK law?

In the UK legal landscape, the phrase “I want to sue a company” marks a critical turning point in one’s pursuit of justice. Whether you’re a small business owner facing a breach of contract, an employee experiencing discrimination, or a consumer battling false advertising, you’re not just seeking compensation, you’re standing up for your rights. From corporate accountability to money not refunded, understanding your legal position is the first step to success. While this guide illuminates your path through corporate litigation, remember that each case is unique and deserves tailored legal expertise to maximize your chances of success.

From small claims to complex litigation, discover how to protect your rights and maximize your chances of success against corporate entities.

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Taking legal action against a company: The legal framework

The UK legal system robustly safeguards your right to challenge corporate misconduct through multiple channels. Whether facing a breach of contract, false advertising, or seeking redress for money not refunded, you can access justice through County Courts, High Courts, and specialized tribunals. The cornerstone of this protection, the Companies Act 2006, establishes companies as distinct legal entities, holding them directly accountable for their actions and obligations. This powerful legal framework empowers all stakeholders, employees battling discrimination, customers seeking refunds, suppliers pursuing payment for services, or business partners addressing contractual disputes, to seek legal remedies. Notably, even when dealing with defunct businesses, UK law provides specific mechanisms for suing a director of a dissolved company, ensuring accountability persists beyond a company’s operational lifetime.

Valid grounds for suing a company

The most common and legally recognized grounds include situations where companies fail to honour their obligations or cause harm through their actions or inactions, such as:

1. Cases of discrimination in corporate contexts are vigorously protected against under the Equality Act 2010, covering unfair treatment based on protected characteristics in employment, service provision, or business relationships.
2. Corporate negligence encompasses situations where a company’s failure to meet its duty of care results in harm or loss. This can range from workplace safety failures to professional service shortcomings, protected under both common law and statutory regulations.
3. Issues involving money not refunded have gained increasing prominence, especially in the digital age of online transactions. This ground applies when companies fail to honour refund policies or withhold payments for cancelled services, affecting both individual consumers and business clients. Similarly, false advertising claims arise when companies make misleading claims about their products or services, violating the Consumer Protection from Unfair Trading Regulations 2008.
4. A breach of contract occurs when a company fails to fulfil its contractual obligations, whether explicit or implied. This covers scenarios ranging from major construction project delays to simple service delivery failures. When not paying you for services rendered or goods delivered, companies breach their fundamental commercial obligations, potentially causing significant financial strain, particularly for small businesses and freelancers.

Additional valid grounds for suing a company include:

• Wrongful termination: Unfair dismissal or contract termination without proper grounds.
• Corporate governance failures: Directors’ breaches of fiduciary duties or statutory obligations.
• Environmental violations: Breaches of environmental regulations causing harm to property or health.
• Product liability: Defective products causing injury or damage under the Consumer Protection Act 1987.
• Harassment and bullying: Creating hostile environments in workplace or business relationships.
• Intellectual property infringement: Unauthorized use of patents, trademarks, copyrights, or trade secrets.
• Fraudulent misrepresentation: False statements that induced you to enter into a contract or business relationship.
• Unfair business practices: Anti-competitive behaviour, market manipulation, or unfair contract terms under the Competition Act 1998.
• Professional malpractice: When companies providing professional services fail to meet industry standards, causing financial or other losses.
• Data protection breaches: Violations of GDPR and the Data Protection Act 2018, including unauthorized data sharing or insufficient security measures.

Corporate liability: Who can you really sue?

Corporate structures determine the extent of liability in legal claims. Private limited companies, public limited companies (PLCs), limited liability partnerships (LLPs), and sole traders each carry different implications for legal accountability. While companies typically shield their directors through the corporate veil, this protection can be pierced under specific circumstances.

Suing a company director personally becomes possible when their actions fall outside legitimate business conduct. Personal liability often arises in cases of:

• Fraudulent trading.
• Breach of fiduciary duties.
• Wrongful trading while insolvent.
• Personal guarantees given to creditors.
• Deliberate misconduct causing personal injury.
• Direct involvement in discrimination or harassment.

When considering whether you can you sue a director of a dissolved company, specific rules apply. Company dissolution doesn’t automatically protect directors from liability. Legal action remains possible by:

• Pursuing directors for personal guarantees.
• Applying to restore the company to the register.
• Taking action for fraudulent or wrongful trading.
• Making claims against directors’ indemnity insurance.
• Addressing personal guarantees that survive dissolution.

Essential steps before filing your claim against a company

Strong cases against companies often succeed or fail based on pre-litigation conduct. Civil Procedure Rules demand specific steps before court proceedings, protecting your position and potentially avoiding costly litigation altogether.

Crafting an effective Letter Before Action (LBA) marks your first crucial step. This formal document must:

• Include relevant documentation supporting your claim.
• Propose mediation or another form of dispute resolution.
• Clearly state your intention to commence legal proceedings.
• Specify the remedy sought (compensation, specific action, etc.).
• Allow reasonable time for response (typically 14 days for businesses).
• Detail the nature of your claim (breach of contract, money not refunded, etc.).

Strict time limits govern your right to legal action. Miss these deadlines, and even the strongest case becomes invalid:

• Defamation: 1 year from publication.
• Contract claims: 6 years from breach.
• Personal injury: 3 years from incident/knowledge.
• Discrimination claims: 3 months from last incident.
• Professional negligence: 6 years from negligent act.
• Company restoration claims: 6 years from dissolution.

Alternative Dispute Resolution (ADR) options often provide faster, more cost-effective solutions:

• Arbitration: Private judicial determination.
• Expert determination: Technical dispute resolution.
• Early neutral evaluation: Independent case assessment.
• Ombudsman services: Industry-specific resolution schemes.
• Mediation: Structured negotiation with an independent mediator.

Taking your case to court: Procedural requirements

Navigating legal proceedings demands meticulous attention to procedure and timing. Success often hinges not just on the merit of your claim, but on following the correct legal pathways and meeting stringent procedural requirements.

Initial steps before court action

1. Criminal aspects of corporate misconduct need prompt action through appropriate channels. Report fraud directly to Action Fraud, the UK’s national fraud reporting centre, while immediate crimes like theft, assault, or harassment require local police involvement. Submit additional reports to relevant regulatory bodies such as the FCA, ICO, or HSE depending on the nature of the misconduct. Always obtain crime reference numbers and request copies of police reports, as these strengthen subsequent court proceedings.
2. A compelling case demands comprehensive documentation. Gather all contracts, financial records, and relevant correspondence with the company. Support these with photographic evidence, witness statements, and expert reports where applicable. Maintain a detailed timeline of events and meticulously document all financial losses and expenses.
3. Early professional legal consultation can transform your case’s trajectory. A qualified solicitor will assess viability, develop strategy, and evaluate evidence while analysing success probability and cost implications. They’ll determine proper jurisdiction and explore alternative resolution options that might better serve your interests than court proceedings.

Court selection and filing process

Strategic selection of the correct court pathway significantly impacts your claim’s success. Each type of legal action demands specific procedures, from initial filing through to final judgment.

Selecting the appropriate court involves careful consideration of:

Small Claims Track (claims up to £10,000):

• Simple consumer disputes.
• Ideal for money not refunded cases.
• Straightforward breach of contract matters.

Fast Track (claims £10,000 – £25,000):

• Property damage claims.
• Professional negligence cases.
• Complex contractual disputes.

Multi Track (claims over £25,000):

• Multiple party litigation.
• Complex discrimination cases.
• High-value commercial disputes.

Specialist Courts and Tribunals:

• Employment Tribunal for workplace issues.
• Competition Appeal Tribunal for market practices.
• Technology and Construction Court for building disputes.

Filing requirements vary by court but typically demand:

• Witness statements.
• Particulars of claim detailing your case.
• Supporting evidence and documentation.
• Fee payment or help with fees application.
• Certificate of compliance with pre-action protocols.
• Completed claim form (N1 or specific tribunal forms).

Proper service of documents ensures legal validity:

• Proof of service documentation.
• Electronic service (when permitted).
• Personal service on registered office.
• First class post to registered address.
• International service requirements for foreign companies.
• Time limits for service (4 months domestic, 6 months international).

Current court fees reflect claim value:

• Up to £3,000: £35 – £115.
• £3,001 – £10,000: £455.
• £10,001 – £200,000: 5% of claim value.
• Over £200,000: £10,000.

Additional costs may include:

• Hearing fees (£335 – £1,090).
• Application fees (£255 – £528).
• Expert witness fees (typically £150 – £500 per hour).
• Barrister fees if required.
• Enforcement costs post-judgment.

Evidence requirements: Building a strong case

Proving your case against a company hinges on the quality and credibility of your evidence. Courts apply strict rules about admissible evidence, making proper collection and preservation essential for success.

1. Admissible documentary evidence forms the backbone of most corporate claims. Preserve all contracts, financial statements, and correspondence in their original format. For cases involving money not refunded or breach of contract, maintain a clear paper trail of transactions, agreements, and subsequent communications. Digital materials require particular attention. Preserve emails with metadata intact and capture screenshots of relevant online interactions, especially in false advertising claims.
2. Witness testimony can significantly strengthen your position, particularly in discrimination or negligence cases. Obtain detailed written statements while events remain fresh, including dates, times, and specific observations. For workplace issues, statements from colleagues or former employees can prove invaluable, though whistleblower protections may need consideration. Remember that first-hand accounts carry more weight than hearsay evidence.
3. Expert testimony often proves crucial in technical or complex disputes. Courts recognize various types of expert evidence:

• Financial experts calculating losses.
• Forensic accountants tracing funds.
• Medical professionals documenting injuries.
• Technical experts examining product defects.
• Industry specialists assessing standard practices.

Courts maintain strict standards regarding admissible evidence, rejecting anything that compromises legal integrity or reliability. They will not accept speculative expert opinions, modified documents, or anonymous witness statements. Similarly, unsubstantiated hearsay, illegally obtained recordings, and evidence from privacy breaches are inadmissible. The same applies to privileged communications between other parties and unauthenticated social media content.

Compensation: Calculating your entitlements

Corporate litigation offers various paths to compensation, from straightforward monetary damages to specific performance orders:

General damages

These compensate for direct losses where monetary value is immediately apparent:

• Money not refunded cases: Full refund plus interest (e.g., £5,000 purchase + 8% statutory interest).
• Unpaid invoices: Full amount plus statutory late payment interest (e.g., £10,000 invoice + fixed recovery costs of £100).
• Cancelled services: Direct cost, plus reasonable expenses (e.g., £2,000 service fee + £500 alternative arrangement costs.

Special damages

These cover consequential losses that flow from the breach:

• Lost business profits: Typically calculated over 6-24 months (e.g., £20,000 – £500,000).
• Market value losses: Difference between expected and actual value (varies significantly).
• Additional operating costs: Actual costs plus reasonable markup (e.g., £5,000 – £50,000).
• Contract termination losses: Remaining contract value plus transition costs (e.g., £10,000 – £100,000).

Discrimination claims

Recent tribunal awards demonstrate typical ranges:

• Sexual discrimination: £5,000 – £45,000.
• Race discrimination: £6,000 – £50,000.
• Disability discrimination: £12,000 – £65,000.
• Age discrimination: £4,000 – £40,000.
• Injury to feelings awards fall into bands:
  1. Lower band: £1,000 – £9,100 (less serious cases).
  2. Middle band: £9,100 – £27,400 (serious cases).
  3. Upper band: £27,400 – £45,600 (most serious cases).

Breach of contract

Awards typically include:

• Wasted expenditure: Recovery of costs rendered useless (e.g., £1,000 – £50,000).
• Loss of opportunity: Compensation for lost business chances (e.g., £10,000 – £500,000).
• Reliance damages: Covering costs incurred in reliance on the contract (e.g., £5,000 – £100,000).
• Expectation damages: Putting the claimant in the position they expected (e.g., £10,000 – £1,000,000).

Negligence claims

Compensation varies based on harm caused:

Professional negligence:

• Solicitors: £5,000 – £250,000.
• Accountants: £15,000 – £300,000.
• Financial advisers: £10,000 – £500,000.

Personal injury elements:

• Minor injuries: £1,000 – £10,000.
• Moderate injuries: £10,000 – £50,000.
• Severe injuries: £50,000 – £250,000+.

Business interruption: £25,000 – £1,000,000+.

What to do if you’re accused: Defending against claims

Receiving notice of legal action demands swift, strategic response. Whether facing allegations of breach of contract, false advertising, or discrimination, your initial actions significantly impact your defence position.

Upon receiving court documents or a letter before action, note the deadline for response (typically 14-28 days). Preserve all relevant documentation and implement immediate document retention protocols. Avoid discussing the case with anyone except your legal advisors, and refrain from making admissions or informal settlement offers. If accusations involve negligence or ongoing issues, take steps to prevent further incidents or losses.

Strategic defence options vary based on claim type:

• Negotiate settlement terms.
• Assert contractual limitations.
• Raise procedural irregularities.
• Challenge jurisdiction or claim validity.
• Propose alternative dispute resolution.
• Dispute factual allegations with evidence.
• Consider counterclaims where appropriate.

Directors facing personal claims, particularly when suing a company director personally, hold specific legal protections:

• Right to company indemnification.
• Limited liability (unless exceptions apply).
• Statutory defences under Companies Act.
• Directors’ and officers’ insurance coverage.
• Protection for legitimate business decisions.

Formally responding to claims demands precision:

• Request specific disclosure.
• Include supporting evidence.
• Raise relevant counterclaims.
• Challenge claimant’s evidence.
• File acknowledgment of service.
• Submit detailed defence document.
• Propose case management directions.

Possible sanctions and penalties: Understanding the consequences

Corporate litigation carries significant financial and operational implications. Courts possess extensive powers to impose penalties and restrictions that can impact both companies and individual directors.

Financial penalties vary based on claim type and severity. Breach of contract cases typically result in compensatory damages reflecting actual losses, while discrimination claims can attract penalties up to £50,000, plus additional compensation. Cases involving false advertising may incur fines up to £5,000 per incident in Magistrates’ Courts or unlimited amounts in Crown Courts. Claims for money not refunded usually attract additional interest penalties, potentially at rates above standard commercial terms.

Courts wield substantial injunctive powers to regulate corporate behaviour:

• Disclosure orders.
• Trading restrictions.
• Compliance directives.
• Prohibitory injunctions.
• Search and seizure orders.
• Mandatory performance orders.
• Freezing orders on company assets.

When suing a company director personally, courts can impose severe personal sanctions:

• Asset freezing orders.
• Compensation orders.
• Personal liability for company debts.
• Criminal penalties for serious breaches.
• Disqualification from directorship (2-15 years).
• Banned from forming or managing companies.

Do I need a solicitor to sue a company?

When pursuing legal action against a company, professional legal representation can be the difference between success and failure. While small claims under £10,000 might seem manageable alone, even straightforward cases of money not refunded can become complex when companies employ sophisticated defence strategies. A solicitor’s expertise proves invaluable in navigating procedural requirements, gathering compelling evidence, and constructing persuasive arguments. This becomes especially critical in cases involving discrimination, negligence, or when suing a company director personally, where technical legal knowledge and strategic insight can significantly impact outcomes.

From a defendant’s perspective, professional legal representation offers crucial protection when facing corporate litigation. Whether confronting allegations of false advertising, breach of contract, or other commercial disputes, solicitors provide both tactical defence strategies and risk management expertise. Their early involvement often prevents costly mistakes, protects corporate reputation, and identifies opportunities for favourable settlement. Directors facing personal claims particularly benefit from specialized legal guidance, as these cases can threaten both corporate and personal assets.

FAQs

• I sue a company based in another country? You can pursue action in UK courts if the company operates in the UK or if the dispute relates to UK activities. Expect higher costs and longer timeframes for international cases.
• What happens if the company goes into administration during my case? The case pauses and you become an unsecured creditor. However, when suing a company director personally, this action can continue separately.
• If I win my case, how long does the company have to pay? Companies have 14 days to pay after judgment unless the court orders otherwise. Enforcement proceedings can begin immediately after this deadline.

Taking legal action against a company requires careful preparation and understanding of available options. Whether pursuing breach of contract or seeking money not refunded, success depends on strong evidence, proper procedures, and often, professional legal guidance. Early preparation and expert advice significantly increase your chances of a favourable outcome.

Need help with your company dispute?

Don’t navigate corporate litigation alone. Qredible’s network of specialist solicitors offers expert guidance for your specific case. Connect with corporate law experts and ensure your legal rights are protected effectively.

KEY TAKEAWAYS

• Legal action against companies must begin with comprehensive documentation of all evidence, including contracts, correspondence, and financial records.
• Company directors can be held personally liable under specific circumstances, particularly in cases of fraud or breach of fiduciary duties.
• Time limits for legal claims are strict, ranging from 3 months for discrimination cases to 6 years for breach of contract.
• Courts offer various compensation options, from direct financial losses to additional damages for discrimination and negligence.
• Professional legal representation significantly increases success chances in complex corporate litigation.