Legal
Expenses > Case Studies
These
case studies are designed to give an idea of the type
of claims we encounter every day.
Case
1 Employment
The Human Resources manager of a supermarket rang our
Legal Consultants after they had caught an employee
in the possession of stock that did not belong to them.
Following advice given by our helpline the company suspended
the employee on full pay pending an investigation.
Having continued to liaise with our consultants throughout
the investigation, the employee was dismissed for gross
misconduct. While the former employee submitted a claim
for unfair dismissal, the employment tribunal rejected
his arguments as they felt the conduct of the company
was correct. Although the company won, they were still
liable for £3000 legal costs which, were paid
by us.
Case 2 Employment
The manager of a factory wanted to amend the contracts
of his workforce following the introduction of the national
minimum wage. He contacted our Regional Employment Consultants
who were able to direct him on what he should change
and how to notify his employees of the amendments to
their contracts.
The manager implemented all the suggestions made by
our consultants and was able to get all of his employees
to agree to the changes without any problems. The use
of our Regional Employment Consultants in this instance
saved the business the cost of using a solicitor to
vet the contracts.
Case
3 Property
Our insured's premises were located behind some factories
and could only be accessed via a small alley. The insured
encountered problems with lorries belonging to a neighbouring
business, which blocked the entrance to the alley. This
caused delays in getting stock to customers and resulted
in loss of business. The insured employed a solicitor
to pursue the neighbouring business for damages as well
as an injunction to stop lorries denying them access.
The insured was successful in obtaining an injunction
as well as receiving £12,000 in damages. We paid
the legal costs of £7,000 that had been incurred
by the insured.
Case 4 Contract
Our insured held a contract with Company A, who produced
their corporate literature. The contract had run for
several years but following a change of management in
Company A, our insured found that the workmanship was
of poor standard. Due to the longstanding relationship
the insured was reluctant to take legal action but financially
needed to resolve the matter. We assisted our insured
in reaching an amicable agreement with Company A to
reproduce the literature to an acceptable level without
having to go to court. Legal costs in resolving the
matter were £3,500 and were paid by the policy.
Case 5 Taxation
Our insured had used the services of sub-contracted
drivers for over 20 years. The Inland Revenue were aware
of this and had carried out regular visits to the insured
over a number of years. However the Revenue changed
their stance which resulted in the Department of Social
Security investigating the insured's books claiming
that the drivers should be classed as employees. With
the help of an independent accountant the insured was
able to successfully appeal the decision. We paid the
accountants fees of £12,000.
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