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Hammonds court date set for controversial partnership battle

Author: ben.mitchell@legalweek.com

Published: 18/10/2007 02:45

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Hammonds’ high-stakes court battle with a group of ex-partners will kick off next month, Legal Week has learned, as the long-running £3m profits dispute edges closer to its conclusion.

A preliminary hearing has been scheduled for 30 November at the High Court’s Chancery division, with the national firm set to square up to the 14 former partners after settlement talks between the two sides broke down earlier this year.

The acrimonious two-year dispute centres on an alleged breach of partnership agreement, with the ex-partners refusing to pay back anticipated profits over a two-year period to April 2005.

The largest individual claim is against former construction chief David Jones for £379,000, with the firm lodging additional demands of more than £200,000 against a further seven former partners.

However, nine of the ex-partners are set to counter-sue Hammonds, demanding audit letters and board minutes to back up their claims.

Meanwhile, it has emerged that Hammonds has no plans to review the controversial partnership measures introduced last summer, meaning equity partners are only permitted to quit the firm on two set days in any calendar year.

Under the system, seven months’ notice is required to leave the firm and partners are only permitted to hand in their notice on 31 March or 30 September.

The national firm introduced the measures in a bid to shore up its ailing partnership, which suffered a rash of departures during a troubled period between 2004 and 2005.

Hammonds declined to comment.

Additional reporting by Claire Ruckin.

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