In June we agreed to do a favour for a friend and took on a difficult client. We thought we could handle it. We can't, for various reasons it has become apparent we can't work with the Company Director.
generally speaking what should be the basis and mechanism of disengaging the company as a client whilst avoiding getting taken to court by the guy!
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Turns out the blokes got history!
If the client has withheld information from you or has misled you then you simply tell him you cannot work with anyone who is absolutely straight with you, and you can probably quote an appropriate extract from your engagement letter.
A while back, a client told me he had no idea why he had Tax Returns overdue or why his previous accountant had not dealt with them. When I sent the appropriate professional courtesy letter my predecessor telephoned to say he had never been paid for the last accounts and tax returns he had done. I resigned the client immediately for lying to me (and told him so), let alone for the likelihood he would not pay me either.
You can only get taken to court if you have done something wrong and your client has suffered a loss as a result.
Tell your client the business relationship is not working as you had hoped and that he needs to find another accountant.
Send a letter of disengagement to him and return whatever personal papers he has sent to you.
He might feel annoyed that he has been dumped, but there is nothing he can do about it. You cannot be forced to work with anyone.
Surely your LOE covers this? It will presumably have words to the effect that either party can terminate the agreement in writing at any time. So like the others above I fail to see the problem.
We had this, and yes LoE did cover it, but still problems can arise. For example he claimed we should have worked on his affairs while we were acting for him, so should have done a tax return (was outstanding when he came to us, still outstanding when we ceased). We had not as not received any papers, despite him claiming someone else had sent papers to us.
In the end do letter disengaging, make sure you remove him from your list at HMRC, make sure registered office not at your address, and in the disengagement letter specify what work was done, and why any returns or accounts that were due at any time in the period were not done.
Also in this case tell the friend.
Dear [***],
I've decided I don't like you very much. Here's some blurb of things that we're mid doing for you that I have to tell you about.
Go and be someone else's problem. Best of luck.
- Accountant
Why not simply send a polite letter saying you no longer have the resources to provide the services he needs?
'Why not simply send a polite letter saying you no longer have the resources to provide the services he needs?' Because that's lying! I suggest just tell the truth, i.e. 'You're too much trouble, and I don't want to deal with you!'
Is he American? If he is British check the spelling of his name before you send you letter.
Has he paid you any money? Does he expect you to have done anything for the money you have been paid? That is where it could become litigious. If he really is that ghastly, I would be tempted to repay every money, and write off the time spent on him, and put it down to a lucky escape!
It sounds like your client is used to rail roading his way through life and getting his own way. Just tell him in no uncertain terms to 'get lost' supported by a professionally worded letter of course. DO NOT LET HIM BULLY YOU! Ugh makes my blood boil
We ALWAYS enclose a copy of our Terms of Trade and Acceptance of Contract, plus a contract for the client to sign.
If the client has failed to deliver to you such information, books, accounts etc essential within a reasonable timescale, then write demanding performance and failing this, then you have the opportunity to issue a Letter of Disengagement. and a bill for your professional time.
As already earlier stated, he may well be a serial litigant, however, he must enjoy a just cause to sue you! as always, he would need what is called "A Triable Issue"; i.e. quantifiable loss which he can prove beyond all doubt under the body of law.
Walk away from this and generate Terms of Trade and Contract of Instruction. Tie 'em up in bloody knots!
Locutus says you cannot be forced to work with anyone. Check the latest court rulings in the Ashers Cake case in Belfast.
The result in that case was because the reason they refused service was one precluded under anti-discrimination law. There is no law prohibiting discrimination against litigious idiots (yet).Locutus says you cannot be forced to work with anyone. Check the latest court rulings in the Ashers Cake case in Belfast.