Case Study 1
When it is not necessary to apply for a Court Appointed Receiver
This case study has been taken from a previous client of Purnells. The names of the parties involved have been changed however.
'Truro 1' was a Partnership with £50,000 worth of assets and with 2 partners who had an irrevocable dispute. The solicitors of both parties came to Purnells to see if we would be appointed as Receiver of the Partnership to realise the assets of the Partnership and split the realisations between the 2 partners in dispute.
Purnells met with the the partners of Truro 1 and their solicitors and explained to them the process in applying for a Court Appointed Receiver and the implications for the Partnership.
Purnells explained that the Partnership stood to loose the value of all of its assets in Receiver's fees and Solicitors fees should they continue down this path and appointed Purnells. We explained the true implications of allowing this dispute to continue and that although it may be an option to appoint a Receiver, as far as the dispute was concerned, it was by no means the best option.
Instead, Purnells advised both parties to sit down with a mediator and try to come to a settlement over their dispute and how the realisation of the Partnership's assets should split between them.
WIth Purnells mediating the meeting, the Partners of Truro 1 were able to come to a settlement agreement between themselves, no Receiver appointed and costs were kept to an absolute minimum to ensure maximum realisations to the partners.
Purnells regards this as one of it's most successful cases as no Receiver was appointed, a settlement was in place only 7 days later and there were no Receiver costs to subtract from the £50,000 worth of assets of the Partnership.
If you think Purnells could help you in a similar way please contact Chris Parkman on 01326 240 680.