Judge slams lawyers for wasting time on fraud claim that was 'bound to fail'

COUNSEL'S DUTY: practitioners must monitor cases to save both time and money

A High Court judge has slammed lawyers for prosecuting a fraud case which was 'bound to fail'.

The case involved various directors and shareholders in a company called Pinecord, better known under its trading name 'Oasis' as a high street women's fashion retailer.

The claimants - Graham and Edwina Brown - were residents in the US who brought the legally aided action against various defendants for alleged fraud, dishonesty and breaches of fiduciary duty.

They alleged that the defendants conspired deliberately to put Pinecord into a position where its receivership was inevitable, with a view to purchasing the assets from the receiver.

The case was dismissed by Mr Justice Neuberger last month after the claimants had closed their case.

Judge Neuberger said that while an application 'to dismiss such a substantial and complicated claim at half time...

is a bold move...

it seems to me that this is a case which is bound to fail against all of the defendants'.

He went on: 'At the moment, I think there is a substantial case for saying that this is a case which should never have been brought.'

Referring to counsel's well established 'duty in connection with a pleading of fraud or dishonesty', the judge said that bringing the case was 'questionable'.

He said: 'To my mind...

the duty of counsel to behave and act responsibly, particularly in connection with proceedings which are obviously going to be expensive to run, and involve serious allegations of dishonesty, is well established.'

Mr and Mrs Brown were represented by London law firm Abrahamson & Associates, leading counsel David Oliver QC, and junior Nicholas Asprey who was later replaced by Tim Evans.

Legal aid was not extended to cover the trial itself, during which the Browns acted for themselves.

Alex Gordon, a partner at Berwin Leighton who acted for some of the defendants, said: 'The claim was without merit from day one.

For the public purse to have supported this action for so long was simply outrageous.' City firm SJ Berwin acted for other defendants.

Barry Abrahamson, sole principal of Abrahamson & Associates, said it would be inappropriate for him to comment at present, as Mr and Mrs Brown are seeking leave to appeal.

Jeremy Fleming