Tradesman shuts down his company to avoid paying back a family for his dodgy work

Edward Scallan’s firm left a trail of unhappy customers counting the cost of shoddy work to install heating systems to their homes.

However, after a court awarded a family thousands in compensation for unfit work, he quietly changed the name of his company from E Scallan Ltd to Scallan Renewables last June.

The body meant to protect renewable customers, The Renewable Energy Consumer Code, is now investigating.

And incredibly Scallan has admitted it was done to avoid handing over cash to the customer who took him to court.

When we confronted the heating and plumbing engineer who has made thousands from the taxpayer in the form of renewable grants from the Scottish Government we asked if it was true E Scallan Ltd had been wound down to avoid paying money back.

And he said: “I’ve had to take safe-guards to ensure the survival of my company.”

Fed-up grandad Tom Aitken is owed £19,000 after taking Scallan to court.

He said: “He drove me to the verge of a nervous breakdown. I lost my job and nearly my health.

“Despite winning a civil case against him we’ve been left with nothing apart from a second mortgage to cover the legal costs. He’s got away scot-free.”

Tom, from Forfar, contracted E Scallan Ltd to install a Raeburn heating system in 2008. He was told it would cost him and wife Marie £15,000. But the family were annoyed when they discovered radiators failed to warm up, and complained immediately.

After the company failed to rectify the problem, the Aitkens started legal action against E Scallan Ltd. In 2012, the family were awarded £6,000 compensation after Sheriff Veal at Forfar Sheriff Court labelled the heating system not fit for purpose. A subsequent hearing also handed the firm the Aitkens’ £13,000 legal bill. But E Scallan Ltd refused to cough up.

Nine-months-ago E Scallan Ltd was quietly dissolved and its assets moved to sister company Scallan Renewables. It operates from the same building near Dundee city-centre, but is not liable for any bills E Scallan Ltd racked up.

Marie, 60, a social care officer, added: “I’ll need to work until 67 to pay it back. On top of the failed system we’ve had to pay for another heating system.

“We got a grant from the Scottish Government for that but it makes me very angry that taxpayers have to shell out for Scallan’s failings.”

Unrepentant Scallan said he has built up a satisfied client base after many years in business.

He said: “The bottom line is Mr Aitken was unable to follow instructions. I’ve over 35 years in the industry and have many satisfied customers. It’s unfortunate for them but he refused to listen to me. He won’t get a penny from me.”

Civil law expert Cameron Fyfe of Glasgow’s Drummond Miller said: “Civil cases like this are against firms and not the individual so it’s legal to wind down a company and start up a new one.

“However, if someone was to do this repeatedly they could be struck off from being a director by Companies House.”