Firm faces $200m claimClifford Chance: hearing to discuss Canadian industrialist's amended claim due next monthCity giant Clifford Chance is facing a $200 million claim for negligence, conflict of interest and improper conduct.

But there are indications that the claim could be increased.

An article in The Observer this week put the figure at $1 billion, which a Clifford Chance spokesman described as a 'headline writer's aberration'.

'The correct figure is between $150 and $200 million,' the spokesman said, referring to a statement of claim lodged on behalf of Canadian industrialist Joseph Zappia in December last year.

However, he declined to comment on whether the firm has admitted liability.

The claim dates back to an action in which Mr Zappia claimed $1.7 billion from the Abu Dhabi government concerning various construction projects in Abu Dhabi.

Clifford Chance started to act for him in 1992 in relation to that claim.

Following the identification of an acknowledged conflict of interest in 1995, the firm ceased to act.

After the collapse of Mr Zappia's claim against the Abu Dhabi government, he issued a claim seeking damages from Clifford Chance through his London-based solicitors, Zaiwalla & Co.

Mr Zappia has applied to amend his original statement of claim with regard to quantum.

A hearing to discuss the proposed amendment is likely to be heard in early February.

Sarosh Zaiwalla, senior partner of Zaiwalla & Co, refused to comment on Mr Zappia's amended claim, but he said: 'It is correct that our clients (Mr Zappia and Zappia Middle East Construction Company Limited) are seeking their entire loss, as a result of the loss of opportunity to obtain judgment against the Abu Dhabi government.

This sum is $1.7 billion.

It was Clifford Chance who evaluated and put forward this claim against Abu Dhabi on behalf of my client.' Jeremy Fleming