NHBC 'Bond' collection - Legal advise required

[Hobo]

I built a number of houses early 2000's, finishing around 2007 at the time of the recession. We as a company were registered with NHBC who provide a 10 year warranty on the new homes, and as part of the signing up procedure we (the directors) signed a joint & several bond.

Fast forward to 2011 and I recieve notice from the NHBC that they have carried out works at one of the homes the year prior and want 11k for thier works. They did not advise ourselves at any stage of any defects, but seemingley just carried out some works and created a bill. I replied stating I did not accept the claim for the basis I had not recieved notification of the defective works, nor recieved any evidence works were undertaken, just a bill for 11k. Nothing more was then heard ....

Todays post, a notice prior to commencement of legal proceedings for the 11k !!! Awesome.

I no longer have any of the previous correspondance or anything due to the time passed, so whilst I can recall elements of thier claim, I have nothing now so would struggle to defend without asking them to provide copies of all previous correspondance.

Advise ??? Would any claim be time barred ?

Ultimately if I need to pay then I will, but seems a bit naughty after a decade.

[944 Man]

Isn't it statute barred? Dept never disappears, but the ability to fight for it in court does.

[Hobo]

944 Man said:

Isn't it statute barred? Dept never disappears, but the ability to fight for it in court does.

Honestly don't know, hence hoping someone may be able to advise.

Seems odd that such an amount of time can pass and then action taken. I've moved house twice in that period, have no records relating to the build of the homes in question, nor any correspondance previously exchanged.

[DaveA8]

Is it to a company and does the company still exist.
Also this is not legal advice but the 6 year rule is based on no communication either way, if they've ever sent a statement or chaser letter, it keeps it live.

I had an issue and believe it or not, I went on Just answer, I'd used it for various things and thought I'd give it a try for legal. it was £5 or approx £60 for a 1/2 hour phonecall.
The guy I got was a semi retired solicitor, at the time I was dealing with a Silver Circle law firm for work and this guy was streets ahead for pure practical, he saved me near 10K as I was about to throw the towel in on the matter concerned but in the end with his help I negotiated it down.
He calls it an advocate role.
If you want I'll try and look out his details tomorrow as I'm off to football now

[Hobo]

DaveA8 said:

Is it to a company and does the company still exist.
Also this is not legal advice but the 6 year rule is based on no communication either way, if they've ever sent a statement or chaser letter, it keeps it live.

I had an issue and believe it or not, I went on Just answer, I'd used it for various things and thought I'd give it a try for legal. it was £5 or approx £60 for a 1/2 hour phonecall.
The guy I got was a semi retired solicitor, at the time I was dealing with a Silver Circle law firm for work and this guy was streets ahead for pure practical, he saved me near 10K as I was about to throw the towel in on the matter concerned but in the end with his help I negotiated it down.
He calls it an advocate role.
If you want I'll try and look out his details tomorrow as I'm off to football now

The company is now closed as we stopped doing developments. The NHBC are looking to enforce a bond signed by the companies directors.

The company openly states in the letter recieved today that they have not tried to make contact since 2012, ie circa 9 years ago.

[DaveA8]

If it were me, I'd be getting advice because the issue you raise of time lag will have be something that is likely to have arisen before and unless you know what you signed or guaranteed it would seem difficult to bat it away especially since problems can occur not in year one but even in year nine.
Probably worth looking out all the old papers before even replying

[NGee]

DaveA8 said:

If it were me, I'd be getting advice because the issue you raise of time lag will have be something that is likely to have arisen before and unless you know what you signed or guaranteed it would seem difficult to bat it away especially since problems can occur not in year one but even in year nine.
Probably worth looking out all the old papers before even replying

Probably worth reading the OPs post before even replying.

[Drawweight]

It must be something pretty serious.

From people I’ve known who have had dealings with the NHBC the house has to be practically falling down before they will become involved.

[surveyor]

Google tells me that in the case of a bond the limitations period is 12 years.

No substitute for proper legal advice obviously

[Hobo]

Drawweight said:

It must be something pretty serious.

From people I’ve known who have had dealings with the NHBC the house has to be practically falling down before they will become involved.

Rest assured, for 11k it's nothing major.

[DaveA8]

[quote=NGee]

Probably worth reading the OPs post before even replying.

I’m not sure what point you are trying to make other than be dismissive and rude, I did read the original post and the answer to my earlier post, I was trying to think expansively particularly relating to reliance on 6 year limitations since if an agreement exists whereby a specific time longer than 6 years is accounted for then the 6 year rule may not be relevant
Maybe too much time on pornhub or the penny slots on Gala has dumbed your senses

[Beetnik]

DaveA8 said:

I’m not sure what point you are trying to make other than be dismissive and rude, I did read the original post ...

Maybe because...

Hobo said:

we (the directors) signed a joint & several bond.

DaveA8 said:

Is it to a company and does the company still exist.

Hobo said:

I no longer have any of the previous correspondance or anything due to the time passed

DaveA8 said:

Probably worth looking out all the old papers before even replying

[HocusPocus]

Ask them for a full pre-action disclosure set with all the documents which they seek to rely upon....all without comment on whether the claim is accepted or not. Put them in front of a construction lawyer to get advice on whether all the conditions for payment have been met; and whether any defences are available. The claimant has to get over every legal hurdle to get home.

On the comments made in forum about limitation, the usual contract debt time bar is 6 years. However there are variations depending upon the type of claim (eg personal injury is 3 years, defamation is 1 year etc)

If the NHBC Bond and Guarantee by your development company and you as personal guarantors was executed as a deed, as opposed to under hand, then it becomes a specialty. Time limit for commencing proceedings for recovery under a specialty is 12 years.

[NGee]

Beetnik said:

DaveA8 said:

I’m not sure what point you are trying to make other than be dismissive and rude, I did read the original post ...

Maybe because...

Hobo said:

we (the directors) signed a joint & several bond.

DaveA8 said:

Is it to a company and does the company still exist.

Hobo said:

I no longer have any of the previous correspondance or anything due to the time passed

DaveA8 said:

Probably worth looking out all the old papers before even replying

Thank-you Beetnik, at least somebody can read

[Foss62]

Hobo said:

944 Man said:

Isn't it statute barred? Dept never disappears, but the ability to fight for it in court does.

Honestly don't know, hence hoping someone may be able to advise.

Seems odd that such an amount of time can pass and then action taken. I've moved house twice in that period, have no records relating to the build of the homes in question, nor any correspondance previously exchanged.

Something that occurred to me - are you sure the recent contact was actually from NHBC? Sometimes companies sell old debts on (at much less than face value) to others who then try to chase them on the basis that they will get a few to pay out. That might explain why you have suddenly received something after a long time period.

[DaveA8]

NGee said:

Beetnik said:

DaveA8 said:

I’m not sure what point you are trying to make other than be dismissive and rude, I did read the original post ...

Maybe because...

Hobo said:

we (the directors) signed a joint & several bond.

DaveA8 said:

Is it to a company and does the company still exist.

Hobo said:

I no longer have any of the previous correspondance or anything due to the time passed

DaveA8 said:

Probably worth looking out all the old papers before even replying

Thank-you Beetnik, at least somebody can read

Both of you might be able to read but neither of you actually tried to add anything other than prove a point but I guess it will make you feel very self important

[Hobo]

HocusPocus said:

Ask them for a full pre-action disclosure set with all the documents which they seek to rely upon....all without comment on whether the claim is accepted or not. Put them in front of a construction lawyer to get advice on whether all the conditions for payment have been met; and whether any defences are available. The claimant has to get over every legal hurdle to get home.

On the comments made in forum about limitation, the usual contract debt time bar is 6 years. However there are variations depending upon the type of claim (eg personal injury is 3 years, defamation is 1 year etc)

If the NHBC Bond and Guarantee by your development company and you as personal guarantors was executed as a deed, as opposed to under hand, then it becomes a specialty. Time limit for commencing proceedings for recovery under a specialty is 12 years.

Thanks for the response. Not sure whether the bond was executed as a deed or under hand. Will need to review.

I think in the first instance I will just ignore the letter and see what happens next. If action is taken then I will likely need to ask them for the full documents as you refer to.

[caziques]

Hobo said:

I think in the first instance I will just ignore the letter and see what happens next.

Exactly what I would do. Silence can be golden.

[Hobo]

Hobo said:

HocusPocus said:

Ask them for a full pre-action disclosure set with all the documents which they seek to rely upon....all without comment on whether the claim is accepted or not. Put them in front of a construction lawyer to get advice on whether all the conditions for payment have been met; and whether any defences are available. The claimant has to get over every legal hurdle to get home.

On the comments made in forum about limitation, the usual contract debt time bar is 6 years. However there are variations depending upon the type of claim (eg personal injury is 3 years, defamation is 1 year etc)

If the NHBC Bond and Guarantee by your development company and you as personal guarantors was executed as a deed, as opposed to under hand, then it becomes a specialty. Time limit for commencing proceedings for recovery under a specialty is 12 years.

Thanks for the response. Not sure whether the bond was executed as a deed or under hand. Will need to review.

I think in the first instance I will just ignore the letter and see what happens next. If action is taken then I will likely need to ask them for the full documents as you refer to.

Having checked the bond documents which came with the letter it was signed as a deed

[BertBert]

Hobo said:

Having checked the bond documents which came with the letter it was signed as a deed

Who's the letter from?
Does the bond doc say how the bond operates?