How to Sue a Company

Can You Sue a Company?

Yes. Under English and Welsh law, a company is a separate legal entity from the people who own or run it. This means you can sue a company directly — you do not need to go after its directors or shareholders personally.

You can sue any type of business structure in the county court:

• Limited companies (Ltd) — the most common type. The company itself is the defendant, not its directors
• Limited liability partnerships (LLPs) — treated as a separate legal person, just like a limited company
• Sole traders — there is no legal separation between the person and the business, so you sue the individual who trades under the business name
• Partnerships — you can sue the partnership in the firm name, or sue the individual partners

Step 1: Find the Company's Details

Before you can sue a company, you need to know its full legal name and registered office address. For any limited company or LLP registered in England and Wales, this information is free and public.

Search for the company on Companies House at find-and-update.company-information.service.gov.uk. You need three things:

• Registered office address — this is the legal address where court documents must be served
• Company number — a unique identifier that confirms you have the right entity
• Company status — check it says "Active". If it shows "Dissolved", you have a problem (see below)

For sole traders, there is no Companies House entry. Use the trading address or, if you know it, the individual's home address. The defendant's name on the claim form should be the person's actual name, with the trading name in brackets — for example, "John Smith (trading as Smith Builders)".

Step 2: Send a Letter Before Action

Before filing a court claim, you are required under the Civil Procedure Rules Pre-Action Protocol to send a formal letter before action (sometimes called a letter before claim). This letter gives the company a final chance to resolve the matter without court involvement.

Your letter before action should:

• Be addressed to the company at its registered office address
• Clearly state what you are claiming and why — set out the facts
• Specify the amount you are claiming and how it is calculated
• Give the company 14 days to respond (or 30 days for straightforward debt claims)
• Warn that you will file a county court claim if they do not respond or settle

Send the letter by post (recorded delivery is best, so you have proof it was delivered) and keep a copy. Many disputes settle at this stage — the company realises you are serious, and paying up is cheaper than defending a court claim.

Step 3: File Your Court Claim

If the company ignores your letter or refuses to pay, file a claim using the N1 claim form. You can do this online through Money Claims Online (MCOL) or at your local county court.

When completing the claim form, pay close attention to:

• Defendant's name — use the exact company name from Companies House, including "Limited" or "Ltd". Do not use a trading name or brand name. For example, if the company is registered as "ABC Services Limited", that is what goes on the form — not "ABC Services" or "ABC"
• Defendant's address — the registered office address from Companies House
• Particulars of claim — a clear summary of what happened, what the company did wrong, and what you are claiming

Claims worth up to £10,000 are allocated to the small claims track, where the process is designed for people without solicitors. You will not normally be ordered to pay the other side's legal costs even if you lose — so the financial risk is limited to your court fee and your own time.

Step 4: The Court Process

Once your claim is issued, the court serves it on the company. The company then has:

• 14 days to file an acknowledgement of service
• 28 days from the date of service to file a defence (or 14 days from acknowledgement, whichever is later)

If they don't respond: You can apply for default judgment. This means the court enters judgment in your favour without a hearing. The company is then legally ordered to pay you.

If they defend: The court sends both sides a directions questionnaire to fill in. The case is then allocated to the small claims track (for claims up to £10,000) and a hearing date is set. Small claims hearings are informal — no wigs, no barristers, just you, the company's representative, and a district judge in a small room. The judge asks questions, looks at the evidence, and makes a decision, usually on the day.

What Can You Sue a Company For?

You can bring a small claims court case against a company for a wide range of civil disputes, including:

• Breach of contract — the company failed to deliver what was agreed, whether that is goods, services, or payment
• Faulty goods — under the Consumer Rights Act 2015, goods must be of satisfactory quality, fit for purpose, and as described. If they are not, you can claim a repair, replacement, or refund — and sue if the company refuses
• Poor services — under the same Act, services must be performed with reasonable care and skill. If a company does a bad job, you can claim the cost of putting it right
• Unpaid refunds — you cancelled within the cooling-off period or returned faulty goods, but the company will not refund you
• Data breaches — under the UK GDPR and Data Protection Act 2018, you can claim compensation if a company mishandles your personal data and you suffer damage (including distress)

Court Fees

You must pay a court fee to issue your claim. The fee depends on the value of your claim and is set by the Ministry of Justice:

If you are on a low income or receiving certain benefits (Universal Credit, Income Support, income-based JSA), you may qualify for Help with Fees (fee remission), which reduces or waives the court fee.

What If the Company Won't Pay the Judgment?

Winning a judgment does not always mean the money lands in your account. Some companies ignore court orders. If the company does not pay, you have several enforcement options:

• Warrant of control — county court bailiffs (or High Court enforcement officers for judgments over £600) attend the company's premises and seize goods to the value of the debt. The fee is £77 for a county court warrant
• Attachment of earnings order — only works against individuals (sole traders), not limited companies
• Third-party debt order — freezes money in the company's bank account and transfers it to you
• Charging order — secures the debt against property owned by the company
• Winding-up petition — for debts over £750, you can petition to wind up the company (force it into liquidation). This is a serious step and often gets results fast — most companies will pay rather than face being wound up. The petition fee is £1,600, so this route is best suited to larger debts

Suing a Company vs Suing a Director

A limited company is a separate legal entity from its directors. This is the principle of limited liability — the directors are not personally responsible for the company's debts or liabilities, and you cannot normally sue them personally for something the company did.

You name the company as the defendant on the claim form, not the directors. For example, if your dispute is with "Smith Plumbing Ltd", you sue "Smith Plumbing Ltd" — not John Smith, even if he is the sole director and did the work himself.

There are limited exceptions where you can pursue a director personally:

• Personal guarantee — the director signed a personal guarantee for the company's obligations (common in leases and supplier agreements)
• Fraud or deceit — the director personally made fraudulent misrepresentations to you
• Wrongful or fraudulent trading — the director continued trading when they knew the company was insolvent, creating debts it could never pay. This is usually pursued by a liquidator, not an individual creditor