Our client was the former owner of a company which owned and operated a care home. Our client agreed to sell the business and entered into a detailed asset sale and purchase agreement.
Under the agreement, following completion the buyers were obliged to carry out works to the care home to enable an additional room to be available to new residents. Upon completion of the works, a clause would be triggered which would result in the buyer being liable to our clients for an additional payment of around £120,000.
The buyer failed to carry out the works to the additional room and argued that it was not obliged to do so because it had not been possible to register the additional room with the relevant authority.
Our team initially sought pre-action disclosure of documents which the buyers could have relied upon to support their claim that no additional payment was due. The buyers repeatedly refused to show us those documents which led us to conclude that either the documents did not exist, or that the only documents which did exist would not support their case.
Based on the uncertainty of the documents’ existence, and despite underlying concerns over whether the failure to do the works did constitute a breach of the agreement, our team were able to negotiate a favourable settlement for a substantial sum.
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