The liquidators of claims handler and legal expenses insurer Invaro last week issued a writ against Cheshire-based law firm Hilary Meredith in pursuit of what it claims to be unpaid debts of £4 million.

Accountancy firm Smith & Williamson warned that it had not ruled out litigation against three other law firms that it claims owe money to Invaro, if current negotiations with those firms do not succeed.


The accountancy firm claims the £4 million debt arose from practice funding and case funding provided by Invaro.


Hilary Meredith, the Wilmslow firm's senior partner, said: 'I am happy that there is no liability whatsoever. Having looked at the pleadings, they do not even begin to establish the basis of any claim, let alone one for £4 million. We are in the process of serving a defence and we will vigorously reject the claim.'


Last month, Smith & Williamson said it intended to recover some £50 million from law firms (see [2005] Gazette, 14 April, 1).


Invaro went into liquidation last June, making 70 staff redundant.