Collyer Bristow pays £24m settlement over Rangers advice
US firm Fried, Frank, Harris, Shriver & Jacobson is facing a professional negligence claim at London’s High Court. Made by a former client, it alleges multiple breaches of duty over advice provided on the enforcement of a commercial loan in France.
The claim arises out of a €20m loan made to Paris-based ProxiMania, under which Trimast Holdings, owned and controlled by investment vehicle Fortelus, became the lender. Trimast claims Fried Frank acted in breach of the terms of its advice over enforcement and security issues arising from ProxiMania’s default on the loan.
In 2009 the claimants instructed Fried Frank’s Paris office with respect to Trimast’s rights under the loan. Fried Frank is accused of multiple particulars of breach, including failing ‘generally to exercise the standard of reasonable skill and care to be expected of an ordinarily competent lawyer.’
The claimants lodged their claim form at London’s High Court in mid-April, with the multimillion-pound claim seeking damages, interest and costs, while a pleadings hearing is understood to have taken place on 14 November with a team from Travers Smith representing the claimants, which include Trimast and Fortelus Capital Management, while Clyde & Co is representing Fried Frank.
Meanwhile, liquidators for Scottish football club Rangers confirmed last month that a £24m settlement in a professional negligence case had been reached with City law firm Collyer Bristow over fees it received in relation to the club’s controversial 2011 takeover.
BDO launched a professional negligence claim against Collyer Bristow in May for more than £50m but agreed a settlement out of court.
sarah.downey@legalease.co.uk