Two former partners have recently settled with the national firm, while three more are in negotiations to reach an out-of-court agreement. This would leave Hammonds fighting a remaining group of nine partners in the long-running dispute filed in the High Court last June.
Former Hammonds partners Nigel Proctor, who quit the top 20 firm for Addleshaw Goddard in 2005, and Jonathan Moore have settled with the firm, while Gerrard O’Neil, Dermot Preston and Philip Rees have not yet filed a defence as they are currently in settlement discussions. The individual claim against Proctor was understood to be approximately £240,000.
The update is good news for Hammonds, which initially faced a group of more than 14 ex-partners. The case centres on ex-partners’ refusal to pay back over-drawings that were paid out to them over a two-year period to April 2005.
The nine remaining former partners have filed a defence, in which they state that they are not obliged to pay back the money because they are no longer at the firm. In addition, some argue that Hammonds’ executive board was in breach of its duty to the partnership.
The largest individual claim is against former construction chief David Jones, for £379,000. Jones is issuing a counter-claim.
Seven of the partners are being represented by Addleshaws litigation partner Pietro Marino and Alan Steinfeld QC. A case management conference was heard in the Royal Courts of Justice last week and another directions hearing is due to be heard within the next month.
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