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When a specialist consultancy company found itself stonewalled by a major pharmaceutical client over unpaid invoice fees, Taylor Rose stepped in to enforce their contractual rights and secure every penny owed,- plus statutory interest.
Late payment is one of the most common, and most damaging, challenges facing businesses of all sizes. The law provides real protections for creditors, including statutory interest under the Late Payment of Commercial Debt (Interest) Act 1998, but navigating the process and knowing how to apply pressure effectively requires specialist expertise.
Our client was a specialist consultancy company providing Qualified Person (QP) and Good Manufacturing Practice (GMP) services within the pharmaceutical industry - highly regulated, high-value work that demands absolute reliability from both parties.
Our client had a written consultancy agreement in place with the pharmaceutical company in question. The payment terms in the contract were unambiguous; invoices were to be paid within 30 days from issuance by our client.
The pharmaceutical company repeatedly missed these payment deadlines and when our client sought answers, they were met with silence and vague assurances - no explanation, no resolution, no payment. At the time of instruction, our client was almost £40,000.00 out of pocket for professional services that they had completed and therefore entitled to be remunerated for in accordance with the invoices issued.
We moved decisively and strategically:
Letter of Claim - We set out the full legal position in writing, making clear that the pharmaceutical company's persistent non-payment constituted a breach of contract and that our client was entitled to recover the full outstanding sum, plus statutory interest. Crucially, itemising our client’s consistent requests for an explanation falling on deaf ears, in conjunction with the unambiguous payment terms, within the Letter of Claim narrowed the scope of any potential defence that the pharmaceutical company could rely on.
Without Prejudice Payment Plan - Recognising that a negotiated resolution was in everyone's interests, we followed up with a structured proposal to settle the debt by instalments, giving the pharmaceutical company a pragmatic route to resolution while keeping our client's legal options fully open.
The combination of clear legal authority and a practical pathway to settlement proved effective.
Our client recovered:
The full outstanding invoice amount - every penny owed under the contract for their professional services.
Statutory interest – pursuant to the Late Payment of Commercial Debt (Interest) Act 1998 which our client was entitled to recover, compensating them for the time their money was withheld.
The matter was resolved without the need for court proceedings.
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