Troubled group claims firm Pogust Goodhead has applied to retire as co-lead solicitor in the ongoing ‘dieselgate’ litigation. In an application to the High Court yesterday the firm said it had made a ‘pragmatic’ decision to avoid any dispute over its funder’s role which it said ‘could be deployed as a delaying or disruptive tactic’ by the defendant car manufacturers.
A number of applications were brought before Lady Justice Cockerill, sitting as a judge of the High Court, in a pre-trial review of the NOx emissions litigation (Cavallari and others v Mercedes-Benz Cars UK Limited and others). The trial, a £6bn collective action over the alleged sale of diesel cars fitted with software to subvert emissions control regulations, is listed to begin next week.
If the application is granted, Leigh Day, currently co-lead, will take over as sole lead in the litigation.
Referring to the background of the application, Benjamin Williams KC, for Pogust Goodhead, said: ‘There have been certain management changes over the summer.’ Among those to depart are former chief executive and co-founder Rhomas Goodhead. The firm's parent company is now owned by Huw Dolphin, a former DLA Piper partner, appointed by fund manger Gramercy.
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Former partner Peter Gallagher, who worked on the ‘dieselgate’ case, has already left the firm, reportedly amid concerns that Gramercy was attempting to interfere in the firm and its work. The firm denies the allegations.
Four other Pogust Goodhead case leads in the dieselgate litigation have also resigned and are currently serving their notice periods. The court was told the four leads would remain ‘subject to instruction of Leigh Day’ and would ‘continue in their pre existing roles’.
Williams told the court that the changes at the firm were ‘becoming a serious distraction’ adding that there were ‘attempts to exploit it in a way that might disrupt the trial preparation’.
In written submissions, the firm said: ‘None of the…circumstances alters PG’s ability to discharge its paramount duties to the court and to its clients. In particular, Gramercy has no control over the day-to-day management or decision making of PG or its parent company. Neither does Gramercy have any role in the conduct, control or management of these proceedings.’
The court heard that the claimants were ‘fully prepared and fully engaged’ and could continue to fund the the litigation as well as meet any adverse costs.
Williams added that Pogust Goodhead’s changes did ‘not give any defendant any right to superintend the internal affairs of the claimant’.
‘The work will be done by extremely experienced firm of solicitors, probably more experienced solicitors in this kind of litigation, Leigh Day.
‘It is ultimately a matter for the court.’
The judge reserved her decision until Pogust Goodhead has answered in writing some questions put to it by Mercedes.
Pogust Goodhead chief executive Alicia Alinia said: ‘We have made a pragmatic and proactive decision to step down as co-lead solicitor on the NOx litigation to uphold the integrity of the trial. This step ensures that the focus remains where it belongs — on achieving justice for those affected by the UK diesel emissions scandal. Recent speculation and misinformation about our firm and its funding are an unnecessary distraction. Pogust Goodhead remains entirely independent and is looking forward to continuing to work on the cases and the overarching strategy.’
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