The claimant solicitors sought to have set aside a statutory demand. They had held sums, but on presentation of his bill, the clients terminated the retainer, and claimed it improper for him to have transferred a substantial sum on account without their prior approval. Whilst the final bill was being taxed the client went into receivership. The bill was very much reduced, and the solicitor was ordered to pay the costs of the taxation. The solicitor then claimed that the new solicitor’s appointment was ineffective, and he had no liability to pay their costs. Increased costs orders were made, and the liquidator issued statutory demands against the partners. Their practices were intervened in. The claimants sought to renew their claims for damages for the breach of authority. There had been various changes in the partnership and the court considered which partners might be liable under which orders.
Held: As to one partner the statutory demand was withdrawn since he was not a partner at the appropriate time. As to the others the statutory demand should not be set aside.
Judges:
Patten J
Citations:
[2009] EWHC 447 (Ch)
Links:
Statutes:
Jurisdiction:
England and Wales
Legal Professions, Insolvency
Updated: 01 July 2022; Ref: scu.317961