Significant reduction in TV Streaming claim

A claim was brought against our client, a UK-based digital firm that provides TV services. Our client had engaged the other party to provide services which would enable our client to stream TV channels to its customers. It was agreed that the other party would provide our client with rack space to install its servers, and the necessary connections and power to operate our client’s digital equipment, and space for their broadcasting satellite to be installed.

The other party claimed that our client was liable to pay £12,000 in outstanding invoices, and later claimed that our client owed an increased figure of £17,000 as a result of the termination of the contract. It was also claimed that a lien would be exercised over our client’s equipment, and that the other party would sell the equipment to raise funds and settle the amount they believed our client owed.

When the claim form was issued, an even higher figure of £63,000 was claimed by the other party. We filed an acknowledgment of service on behalf of our client and were instructed by our client to negotiate a settlement agreement. We succeeded in doing so, negotiating the £17,000 claim against our client for contract termination to £4,000. The court recorded this settlement by way of a consent order, concluding the matter.