Free «Commercial Law. Practical Tasks» Essay
The Defendant has a trading account with the Claimant, and it is true that it ordered four moulding machines from the Claimant on 13th January 2009 at a price of £60,000 plus VAT. Although the machines were delivered, they have been the subject of repeated breakdowns and have suffered a number of faults. The main problem with two of the machines is that despite a number of site attendances by the Claimant’s engineers they have proved incapable of producing mouldings to industry standards. I have been advised by Mr. Edward Knight, a consulting engineer of 36 Harrogate Road, Leeds LS3 8DQ, that these two machines are so badly designed that it will be impossible to put them right.
As a result of the problems with all four machines the Defendant has suffered a substantial loss of business. In particular, it has lost a contract with United Plastic Containers Plc, under which the Defendant was producing goods valued at between £10,000 and £20,000 per month. I refer to a bundle marked PS1 containing true copies of the Defendant’s contractual documentation with United Plastic Containers Plc, monthly invoices, and recent correspondence in which the termination of the contract is explained. I have been advised by the Defendant’s solicitor and believe that it has a substantial counterclaim with a value significantly above the value of the claim.
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As soon as I received the court papers in this action, I raised the matter with Mrs Sara Johnson, the finance director of the Claimant. I refer to a bundle of correspondence marked PS2. A true copy of my letter to Elaine Stepney is at page 1 of the bundle. Her reply, at page 2, says she will look into the matter. Nevertheless, judgment was entered on 29th April 2009.
For the reasons set out above, I ask that this judgment be set aside on the merits. I refer to a draft defence and counterclaim marked PS 3, which the Defendant intends to file if judgment is set aside, and I confirm the truth of the contents of the draft defence and counterclaim.
If judgment is set aside and the case allowed continuing, I respectfully ask that the action be transferred to the Leeds County Court, the local court of the Defendant.
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I believe that the facts stated in this witness statement are true.