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Commercial Litigation Specialists and BHS

Commercial Litigation Specialists – Recovering Unpaid for Goods from the Administrator of BHS. 

The commercial litigation specialists here at Neil Davies and Partners were recently instructed by a multi-national client on a cross-border dispute over £100,000 worth of goods ordered and supplied by our client to the UK high street shop chain BHS Limited (‘BHS’), that weren’t paid for following its administration. This case study details the successful action we took to resolve this issue for our client.

The Details of This Commercial Litigation Matter

The order for over £100,000 worth of high quality, high value hardwood furniture was placed by BHS and shipped by our client from the Far East prior to BHS being placed into administration.  At the time and point of administration the goods were en route to BHS in the UK, in 3 containers aboard 2 cargo vessels.

Events moved quickly with BHS being placed into administration, with the Administrators, Duff and Phelps, indicating to our client that the goods would not be paid for. There was no offer to return the goods to our client, who was facing a significant loss. We were instructed on an urgent basis in circumstances where one of the 3 containers of furniture had already been unloaded at Felixstowe docks and was incurring significant storage charges, which would have to be paid for by our client too.

The Action our Commercial Litigation Specialists took in this Dispute

Following our urgent assessment of the dispute it was apparent that a mixture of Shipping Law, the Law of Retention of Title and English Insolvency Law would have to be considered and applied.

Time was of the essence in this case and we immediately corresponded with BHS’s Administrators, demanding that they clarify their intentions (i.e. pay for or return the goods) or face immediate Court application by our client.

The Outcome

After these initial exchanges, which took place over a period of 10 days from our first being instructed, the Administrators agreed to release the goods back to our client, so that they could be sold to a buyer who would pay for them. This outcome instantly removed the threat of a £100,000+ loss to our client.

This case demonstrates that our commercial litigation specialists were able to achieve good, commercial results for this client, despite tight timescales and potentially complex legal issues. Click here to see a testimonial from our client.

Contact us if You Are in a Commercial Dispute

Our team of commercial litigation solicitors are experienced in all commercial litigation matters, including:

  • Commercial Disputes
  • Urgent Court Injunctions
  • Debt Recovery
  • Search and Seizure Orders
  • Regulatory Raids
  • Breach of Contract Claims
  • Interference with Business Claims

It is always the case that the earlier you seek and obtain legal advice the better. That is because it is more likely that we can help and achieve a positive resolution for you.  So, if you have a dispute with an Administrator or another Office Holder, please contact us, or call us on 0121 200 7040 today, today.  Click here to see some other commercial litigation case studies.