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Ex-RSM partners win court battle to set-up on their own

FORMER RSM TENON partners have won a court battle that will allow them to set up their own practice in Glasgow.

Six RSM Tenon partners had planned to start a new venture when they left in August however, the firm would not allow them to work until May 2014, due to personal covenants, the Herald Scotland reports.

However, days later RSM Tenon group entered administration with the trading entity sold to Baker Tilly through a pre-pack. A few weeks after the completion of the sale, Baker Tilly tried to keep those covenants in place against the partners.

Following a court hearing Lord Malcolm, at the Court of Session in Edinburgh, found in favour of the RSM Tenon partners, claiming the covenants could not be enforced by Baker Tilly.

Charles Burton, managing partner in the RSM Tenon’s former Glasgow office told the Herald: “This has been a real David against Goliath fight but I’m very pleased that yet again David has won. My colleagues and I were very disappointed at the stance taken by Baker Tilly.”

“We had no relationship with them and what they were trying to do was overturn a century of law to restrict us from earning a living. They have spectacularly failed.”

RSM Tenon employed about 60 people in the Glasgow office. Earlier this month eight partners from Edinburgh joined rival Mazars. A total of 15 partners have now left the firm to join Mazars in the past four months.

The six partners embroiled in the Scottish legal dispute in Glasgow were: Burton, Tom Arbuckle, John Blair, Raymond Carke, David Holt and James Goodman.

Baker Tilly declined to comment.  

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