Top 20 firm sues former IP over repayment
Kingston Smith files legal claim against former partner and insolvency practitioner Tim Bramston to recover outstanding debts
Top 20 firm Kingston Smith has filed a legal claim against its former partner
and insolvency practitioner Tim Bramston to recover outstanding debts.
Bramston left Kingston Smith at the end of 2008, moving to insolvency firm
Griffins. He was appointed office holder on a variety of corporate insolvency
cases and took the progress of work with him to his new firm.
Kingston Smith claims it is owed £381,818.92 plus interest for expenses
incurred by the firm for work conducted on cases and unbilled chargeable time.
Accountancy Age understands approximately 80% of the initial debt was repaid
and a lower offer on the remaining balance made, which Kingston Smith declined.
The firm made the High Court claim on 21 April 2010 and charged interest
on the balance at 8% from 30 May 2009 – a total of £27,365.43. Court documents
show Kingston Smith will charge a further £83.69 per day from its legal filing
until a judgment or payment is made.
Michael Snyder, partner at Kingston Smith said: “He [Bramston] was due to pay
for work in progress and he hasn’t.”
Snyder added the firm would “desist” from the legal challenge if the money
was repaid, and was not interested in accepting an offer for part of the
balance.
IPs often take cases with them if they move firms. Before the move a
financial agreement is usually reached between the outgoing IP and their former
firm.
A statement by Bramston said: “This is a commercial dispute and regrettably
we were unable to reach an agreement on the balance.”
He confirmed he would be defending the allegations in court.
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