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Thomas, Lawyer
Category: UK Law
Satisfied Customers: 7620
Experience:  BA (Hons), PgDip, Practising Solicitor
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In 1955 I had my house painted by Wallshield with a fifteen

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In 1955 I had my house painted by Wallshield with a fifteen year guarantee. The surface is deteriorating in various places so I contacted Wallshield asking them to come and inspect. I was informed that they were now a new company, the earlier one having been liquidated, and that they were not responsible for their predecessors liabilities.

Is this correct? Incidentally I how receive offers from the new Wallshield offering their services, stating they guarantee their surfaces for 20 years!
Thanks for your question/n .

For clarity and the avoidance of doubt, could you please respond to the following USING THE SAME NUMBERING:-
1. You have stated that you had your house painted in 1955 with a 15 year guarantee. Is this correct because the guarantee would have expired in these circumstances ?
Kind regards.

Customer: replied 5 years ago.
Sorry, I should have said 2005, not 1955!

Thanks for your reply.

Essentially, if the new company is genuinely a new company then the liabilities of the previous guarantee cannot be enforced against the new company because they are separate legal entities and therefore they are not responsible for the debts of another company in the same way that other people should not be liable for other peoples debts.

However, if the new company is simply a sham in that there are exactly the same directors, same shareholders, same business, same location, same trade as the previous limited company then you can attempt to sue the new company.

You would have to prove to the Court that the formation of the new company was simply to avoid having guarantees enforced against them and that, for all intents and purposes, there is no material difference between old company and the new company. Essentially you would be asking for the corporate veil to be lifted on the new company so that the court accepts they are the proper defendants.

I would start by reasearching the new company and the old then take it from there. Probably getting a solicitor to write to the new company. Only correspondence with them in writing and keep copies of everything.

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Kind regards,

Customer: replied 5 years ago.
Thank-you, excellent service

Sorry, i posted that as an info request. Could you try rating my answer now please?

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