The Law Society is referring two top Freshfields Bruckhaus Deringer partners to the Solicitors Disciplinary Tribunal (SDT) over their role acting for Philip Green in his £9bn bid for Marks & Spencer (M&S) in 2004.
The Law Society today announced (30 October) that it had applied to the SDT — the body which adjudicates on alleged breaches of conduct — to look into the conduct of corporate partners Barry O’Brien, who led the team on the deal, and UK corporate chief Tim Jones in relation to the claims that the magic circle firm was conflicted.
The development is a major step forward for the protracted investigation into the firm’s decision to accept the instruction.
The case relates to Freshfields’ decision to represent Green on his M&S bid, despite having worked with M&S in the past. In summer 2004, Freshfields was injuncted from acting on the deal after M&S, advised by Slaughter and May successfully argued there was conflict. The Law Society subsequently initiated an investigation, which has now been ongoing for two and a half years.
The tribunal has power to strike off a solicitor from the Roll, suspend from practice, fine or reprimand. The maximum fine currently stands at £5,000 although it is understood the Law Society wants to look at increasing the figure in the future.
Two other partners, former chief executive Hugh Crisp and head of corporate Gavin Darlington, who were also being investigated by the Law Society have not been referred to the tribunal and the Law Society has confirmed there is no-one else still in the frame.
A tribunal of this sort can only investigate the conduct of individuals rather than the firm as a whole.
One leading professional negligence partner commented: “Any guilty charge, however minor, would have major implications for the firm as well as the individuals involved. That will be more serious than any fine, or otherwise, they impose.”
The announcement came as a shock to Freshfields as it had no prior warning. In a statement, the firm said it regrets the decision of the Law Society to refer the conduct of two partners to the tribunal and continues to believe that a decision of this kind should not form the basis of disciplinary proceedings.
The case will be seen under the Law Society’s old conflict rules, rather than the modernised rules introduced this spring, which allow firms to act in potentially conflicting situations in some cases provided they have prior consent from all parties.
A date for the tribunal has not yet been set but is expected to take place next year. Any decision to come out of the tribunal may also go to appeal.
The high profile case comes at an important time for the Law Society as it moves to prove itself as an effective regulator of the City ahead of impending Clementi reforms.
(See Editor’s Blog)
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Details emerge as Freshfields partners referred to tribunal over M&S conduct
Published: 30/10/2006 00:00
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