Stuck With an Unpaid Invoice?
17 December 2024

Cash flow is essential for the successful operation of any business.


In an ideal world, a business would be paid all its invoices on time and every time. Unfortunately, unpaid debts are part and parcel of running a business. Invoices may be paid late if the debtor is having financial difficulties. Occasionally, for one reason or another, some invoices are not paid at all.


If your business is dealing with a debtor that has ignored reminder letters, statements, warning notices, or has simply refused to talk, there are a range of debt recovery options available to you depending on the particular circumstances.


The starting point is usually a letter of demand. It formally sets out why the debt is owed and when the debt is to be paid by. A letter of demand is a useful first step because it demonstrates to the debtor you are prepared to take matters further. The letter often prompts the debtor to respond with a payment plan or settlement proposal, which, if agreed to, can be a cost effective and quicker way to recover the debt without having to take any more steps.


Where the debtor is a company and you have reason to believe it is unable to pay its debts, you can issue the company with a statutory demand under the Companies Act 1993. However, a statutory demand should not be used when the company is solvent or when the debt is genuinely disputed.


Once served with a statutory demand, the company has a short window within which the company must either apply to set the statutory demand aside or make the payment. If the company fails to comply, it is presumed insolvent and can be placed into liquidation. If the company is trading or has assets, a statutory demand can be an effective tool because the company will in most cases want to avoid liquidation. Besides, forcing the company into liquidation is not always in the creditor’s best interests as there is no certainty of recovery of any money; particularly if, the company has no valuable assets or has other creditors.


If issuing a statutory demand is not available, or where the debtor is an individual, you can have formal proceedings for recovery of the debt issued in the Disputes Tribunal, District Court, or High Court, depending on the sum involved. Aside from the sum involved, there are a range of considerations you should take into account at the start of the process. These include the costs and delay of court proceedings, the credibility of any dispute, and, importantly, the debtor’s ability to satisfy any judgment against it.


If you are stuck with an unpaid invoice or dealing with a difficult debtor, we are available to assist you. For more information, please contact Paul Kim.

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Glaister Keegan had its biennial firm photo this month, it was great to get the team together for this shot to celebrate the people behind the work!
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Trees offer a wide range of benefits. They improve air quality, offer cooling and shade, reduce soil erosion, beautify the land, and can increase the value of your property. Unfortunately, not everyone sees trees the same way.What is a peaceful garden feature to one neighbour, can be a nuisance (or even a threat) to another. Overhanging branches, invading roots, blocked sunlight, or leaf-clogged gutters can all spark tension, and lead to potentially bitter and costly legal disputes between otherwise friendly neighbours. At Glaister Keegan, we have seen first-hand when something as natural as a tree can become the “root” of a bitter, costly legal dispute. Here's what you need to know before taking action, and how we can assist you in protecting your rights. Your Rights as a Property Owner Every property owner has the right to enjoy and use their land, and that includes planting trees. But that right has limits. When a tree on your neighbour’s property starts affecting your land, the law steps in. Common problems include: overhanging branches crossing the boundary line roots damaging driveways, foundations, or pipes trees blocking access to sunlight or scenic views; and fallen leaves or branches clogging gutters and drains. Can You Just Cut It Back? Yes—But Carefully You are generally allowed to trim back any branches or roots that cross onto your property, but only up to the boundary line. This is known as “abatement.” However, there are a few important rules: you must not trespass onto your neighbour’s land you must not cause unnecessary harm to the tree or surrounding property; and because the cuttings still belong to your neighbour, you may be required to return the cuttings. Importantly, some trees are protected by local council regulations, resource consent conditions, or covenants on the title. Cutting or damaging a protected tree without permission could result in significant penalties. We strongly recommend getting legal advice before doing any trimming (even if the branches are clearly on your side). When Trees Cause Damage or Safety Hazards If a tree is damaging your property, you may be able to: remove the offending roots or branches (within legal limits); and recover the cost of repairs and removal through the Disputes Tribunal (for claims under $30,000) or District Court (for larger claims). If the tree poses a safety risk, or unreasonably interferes with your view, sunlight, or enjoyment of your land, you can apply to the Court for an order under the Property Law Act 2007. The Court can order your neighbour to trim or remove the tree if it is deemed fair and reasonable to do so. The Court will consider: what the risk to people, property, or health is whether your view or sunlight is being unduly obstructed whether the tree is interfering with crops, drains, or everyday enjoyment of your land what the tree’s public, historical, or cultural value is; and whether the tree existed before you bought your property. To succeed, you will need to show you will suffer more hardship if the tree stays than your neighbour would if it were removed. Timing and Costs If the Court orders the tree to be trimmed or removed, your neighbour usually has 20 working days to comply. While the Court can order them to contribute to the cost, the expense usually falls to the person making the application. Need Legal Advice? We are Here to Help If a tree is causing conflict between you and your neighbour or you are unsure of your legal position, talk to us first. We can guide you through your options, help you protect your rights, and, where needed, represent you in the Disputes Tribunal or Court. Contact our litigation team for practical, reliable advice before a small dispute takes root and grows into something much bigger. Paul Kim, Alex Wang, Brett Vautier
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