Negligence claims worth tens of millions of pounds against Chantrey
Vellacott, revealed in Accountancy Age last
month, have been thrown out of the High Court with the firm’s costs – in the
region of £5m – awarded to be paid by the claimant.
The trial was thrown out by Mr Justice Rimer after four weeks of what was
expected to be a five-month case.
It is understood that Convergence, which had claimed that Chantrey
Vellacott’s actions had cost the company the opportunity to win a $100m
contract, had made assurances that it could afford to take part in the trial.
However after four weeks Convergence has entered into administration.
Chantrey Vellacott had initially claimed for unpaid fees from Convergence,
which then counterclaimed Chantrey Vellacott.
The administrators were then given the opportunity to carry on with the legal
action, which they declined.
Justice Rimer then struck out all claims against Chantrey Vellacott
and awarded the firm’s legal costs to be paid by Convergence’s administrators.
‘In my judgment, there is plainly jurisdiction to strike out the defences and
counterclaims in the circumstances which have arisen and such an order would
appear to me to be plainly a just order to make,’ said Mr Justice Rimer.
‘This is a complete vindication of the firm’s view throughout that the claims
for damages of approximately £150 million were absolutely unfounded,’ said a
spokesman for Chantrey Vellacott.
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