Assignment Brief :

Assignment 2 : Legal Solutions Case Studies

You have been given the following case studies to review which represent various legal problems.  The areas of law to be considered contain Company Law; Contract Law and Employment Law.  For each case presented you need to apply and justify a legal solution to the problem and where they can obtain legal advice and support.

You now need to file a report to your manager outlining the advice given in relation to these legal problems.

For each case you need to first give a brief introduction and description of the particular branch of law.

CASE STUDY 1:  COMPANY LAW

Ten years ago, a group of friends formed AV Construction Ltd.  Over the years they secured many projects and became a successful building company.  At first they only had a few small projects but as time progressed they found themselves facing progressively larger contracts.  However despite their initial success they started to run into difficulties and felt they were not able to cope with the rapid growth of the company.

Disagreements began particuarly in relation to financial issues and they felt that they were no longer functioning professionally as a team.  The finance director in particular felt out of his depth and that he was being left to make all major decisions.

Due to disintergration of communication a number of important creditors had not been paid and some were threatening to recover money from the company by petitioning the court to recoup their money.  The directors of AV Construction called an emergency board meeting to discuss their options.

They have asked you to draw up a report offering a legal solution to their problems

Questions to consider :

1. Possible solutions, negotiation with creditors
2. Possible solutions – involve a Mediation service and/other legal advice
3. If the company cannot be resued, the grounds upon which the company can be wound up. Advise that they do not wish to be compulsory wound up
4. Advise on other ways such as administration and voluntary liquidation
5. If the company is to be wound up the order in which creditors of liquidated companies are paid by the liquidator.

CASE STUDY 2 : EMPLOYMENT LAW

Jane Patel was employed by as a Creative Director at Richards and Appleby Architects.  She was a high-flying architect, was formerly employed by British Airways and has a number of prestigious awards to her name.

Prior to taking maternity leave in 2014, Ms Patel enjoyed an equal leadership role to a male colleague. In 2015, whilst on maternity leave, the business was restructured which saw Ms Patel reporting to her former colleague, and receiving less salary and bonus than him. In effect, she had been demoted.

After her maternity leave, Ms Patel sought to address these issues with her employer and agree her return to work date. The company CEO would not engage on an informal basis so Ms Patel brought a grievance, after which she suffered numerous meetings where she was discriminated against and victimised.

Regarding her demotion, Ms Patel was described by the CEO as suffering from “maternity paranoia” and was accused by another senior company member of “trying to be a Supermum”. Both men were condescending and aggressive towards Ms Patel in meetings, which led her to realise that they could not work together.  Her health is deteriorating and she is considering resigning and has come to you for help.

Recommend a legal solution to Ms Patel under Employment Law for her disputes and advise where she can obtain legal advice and support:

Questions to consider

1. As she is not a member of a trade union, advise Ms Patel on the benefit of using Alternative Dispute Resolution (ADR) by contacting ACAS. If ADR fails then;
2. Advise Ms Patel as to whether she has grounds to bring a claim to the Employment Tribunal (ET) of
3. Sex Discrimination; or
4. Maternity Discrimination; or

• Equal Pay; or

1. All of the above
2. Could Ms Patel resign and claim constructive dismissal?

CASE STUDY 3 :  CONTRACT LAW

Sarah was a struggling writer who taught some night classes to make ends meet.  One of her students, Alexander, took a shine to her and lent her £5,000 which he had just inherited so she could finish her first novel.  Once she had finished the novel she would then repay the money to Alexander with interest.  The money, however, was not to be repaid for some time and the interest rate was low.

Some time after the night classes had finished Alexander and Sarah began to see much less of each other.  Alexander realized he had perhaps been too generous.

In the meantime, Sarah had been employed by Media Productions Limited to write a screenplay starring famous actress, Olivia, which was to be produced by Media Productions Limited.

Sarah was paid £10,000 up front with a further £15,000 to be paid when the project was completed.  Sarah needed various services to complete the project which she ordered from her usual supplier, Raymond.  He said that these could be supplied within the month.  However Raymond received a rush job from another more important customer and this meant that he did not complete his obligations to Sarah.

While waiting, Olivia had been in a serious car crash which meant she could not appear in the play.  Sarah was then told the script was no longer needed.

Advise the parties concerned and consider the following:

1. Can Alexander cancel the contract with Sarah and get his £5,000 returned?
2. Does Sarah have any rights against Raymond?
3. What claim, if any, does Sarah have against Media Productions Limited and Olivia in regard to the decision to cancel the play?
4. Where could the parties seek legal advice?