Companies House blunder spawns £8.8 million claim

A blunder in respect of a single letter in an official document resulted in a 124-year-old family business being ruined and an £8.8 million High Court claim. Companies House mistakenly recorded engineering company, Taylor & Sons Limited as having been wound up when it was Taylor & Son Limited which had actually gone under.

When the word got out following the error, Taylor & Sons’ business ran dry, orders were cancelled and credit facilities were withdrawn. The business, which was established in 1875 and which had its roots in the 18th Century, ended up in administration.

The company’s ex-managing director and co-owner is now suing Companies House, claiming that the demise of his business was the foreseeable result of the mistake. For its part, Companies House denies that it owed the businessman a duty of care or that the error, which was put right within three days, caused the company’s failure.

However, the businessman’s lawyers say that the correction to the register of companies came too late as rumours were already flying that Taylor & Sons, which employed more than 250 people, was in trouble and the record remained publicly available elsewhere for an extended period. The hearing continues.

Contact: Alan Porter