Regulator's future in doubt as law firms prepare cases

Railtrack's administration may soon produce its first legal casualty beneath the growing pile-up of City firms rolling into action, as speculation over the future of solicitor rail regulator Tom Winsor intensified this week.In addition to Linklaters, acting for the Strategic Rail Authority, and Slaughter and May acting for the administrator Ernst & Young, three other London firms - Allen & Overy, Edwin Coe and Class Law - are all acting on behalf of shareholders eager to challenge the decision to put the company into administration.Class Law and Edwin Coe - thought now to have around 3,000 and 1,000 prospective shareholders on board respectively - held meetings last week as concern mounted about duplication of work and costs in any proposed action.Allen & Overy acts for the 15 City institutions - the Railtrack Shareholder Action Group - looking to remedy their predicament, but the group also has 4,000 ordinary shareholders.Differences of approach are evident - Edwin Coe announced it was seeking an urgent meeting with transport secretary Stephen Byers, while Class Law said it would not talk to ministers until it had maximum support and considered strategy.Ashurst Morris Crisp acts for Railtrack's directors and Theodore Goddard won Railtrack's bondholder work last week, when Linklaters was conflicted from acting for Law Debenture.

CMS Cameron McKenna continues to represent the government.Meanwhile, press reports suggested the government is looking to create a streamlined regulatory regime, and questioned the future of Mr Winsor.A spokesman for Mr Winsor's office dismissed the reports as contradictory.

Jeremy Fleming