Hammonds has issued formal proceedings against a group of 14 former partners, the national firm announced today (11 June), as its long-running profits dispute rages on.
The acrimonious two-year dispute between Hammonds and the ex-partners will now enter its next stage after the sides failed to agree a settlement.
In a statement, a Hammonds spokesperson said: “We have been working to reach an agreement with a number of our former partners to recover money due and owing to the firm. Regretfully we have been unable to resolve the matter with every such partner and as a result we have today issued proceedings against 14 former partners.”
The spokesperson added: “We have, at all times, sought to treat partners in a fair and equitable manner, consistent with the treatment of partners who remain with the firm. After a good number of months trying to reach an agreement, we now believe it is in the interests of all concerned that we bring the matter to a conclusion.”
In April this year it emerged that the firm had been in mediation with some of the ex-partners, who at one point were thought to number more than 15, and hopes of a settlement had risen. However, today’s announcement will set the scene for a rare courtroom dispute between a commercial firm and its former partners.
In 2005, senior management sent out letters to ex-partners who had left within the last 12 months asking them to repay over-drawings that had been dished out to them. At least one former partner is believed to have been asked to repay more than £100,000 by the firm.