Wright Hassall is pursuing an insolvency practitioner (IP) in court to recover over £200,000 of fees owed to it for litigation work conducted during an administration.
The solicitors firm took action against Duncan Morris, an IP for the Redfern Partnership, to recover a cost order made in previous proceedings for £74,000 and around £135,000 of fees owed for litigation work it conducted between two firms in administration and third parties after Morris sought their expertise.
After it became clear the two firms, which Morris was acting as administrator for, had insufficient assets to recover Wright Hassall’s costs, the firm sought court orders to make Morris personally liable for the fees.
Wright Hassall has also sought an order to remove Morris as administrator for the two firms (Marketbalance Ltd and Phoenix Insurance Management Ltd), alleging that he acted in breach of his statutory duties, a practice known as misfeasance.
According to a judgment published yesterday, the parties have agreed some of the relief sought by Wright Hassall, but the rest of the application has been adjourned for a separate hearing.
Morris was approached in 2008 with a view to becoming an administrator for the two firms, which at the time were embroiled in litigation with a firm called Haven Insurance Co Ltd.
Haven alleged that the two firms had wrongfully retained substantial insurance premiums which were owed to it, and obtained an order freezing up to £1.5m the two firms’ assets.
After Morris was appointed, Wright Hassall was engaged to perform the litigation under two separate conditional fee arrangements (CFAs), which it is now seeking to recover.
Wright Hassall was unable to comment on the proceedings as they are still live. Morris did not return a request for comment.
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