Epoq wins Claims Direct rulings

Legal IT company Epoq - of Desktop Lawyer fame - has obtained judgment on two claims against Claims Direct, the claims management company which went into administrative receivership last month.

The two claims related to contracts signed in February 2001 for the provision of an on-line legal service for Claims Direct customers and a business service for small companies.

Between them, they were worth more than 1 million to Epoq.

Richard Cohen, Epoq chief executive and a partner at London firm Landau & Cohen, said: 'We developed and provided both products to Claims Direct and received payment from them, although they didn't have the finance to launch either service.

This put them in breach of contractual terms and in March this year we brought proceedings over both, before the receivers moved in.'

He continued: 'We believe we are one of the largest creditors making a claim, but there are more than 100,000 cases being pursued against the company.

A lot will depend on the financial structure of the company once the receiver has collected all the assets.

He has 12 months to do this, so at the moment we are sitting and waiting.'

Meanwhile, a Lancastrian computer entrepreneur, Mick Shepherd, has reportedly bought the Claims Direct business name, call centre and some senior staff for 1 million.

Mr Shepherd beat five other bidders for the personal injury claims handler - once worth 650 million.

A spokeswoman for receivers Deloitte & Touche said: 'I cannot confirm the buyer and price, except that 1 million is less than the actual sum paid.

There are other Claims Direct assets still for sale including the debtor book and claims-processing technology.'

Andrew Towler