Subsidiaries of a former client are liable for fees incurred before the date of a signed agreement with magic circle firm Linklaters, a judge has ruled in a dispute over a £2m bill. David Elvin KC, sitting as a High Court judge, yesterday found in favour of Linklaters which is suing subsidiaries of its former client Finablr plc, which has been in administration since 2022.

The firm says the company’s outstanding invoices total £2,037,200.77 plus interest. UAE Exchange UK and UAE Exchange International Holding are subsidiaries of Finablr. The fees under the joint and several agreement cover professional fees, disbursements and tax.

Finding for the firm, the judge said: ‘The fact the defendants now regret their obligation is not a reason to redefine construction [of the agreement].’

The court heard it was ‘not necessary’ for the judge to refer to commercial common sense but even if it were, the words of the agreement would support the judge’s finding that the wording of the JSA referred to both past and future incurred fees.

He said a reference ‘to past and future advice provided and past and future benefit’ was ‘relevant to understanding the language used by the parties in the JSA itself’. He also found the agreement provided ‘sufficent benefit’ for both parties.

The judge said: ‘I do not consider that I need to go any further than the language of the JSA and the intention it.’ He added: ‘I find in favour of the claimant that the JSA included liability for the defendant for fees warranted and future fees presented by Linklaters to Finablr.’

A detailed assessment application has been referred to a costs judge for determination.

 

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