Addleshaw Goddard loses attempt to have professional negligence claim heard in Scotland

Arthur Holgate & Son (AH&S), which entered insolvency in 2012, brought a claim against the law firm, which argued that the English courts lacked jurisdiction.

But a judge has thrown out the claim and the case will be head south of the border.

The firm had argued the partner advising on the insolvency, Tim Cooper, was based in Scotland but AH&S’ lawyers said he was merely a “foreign expert” practising in Scotland.

AH&S entered insolvency in 2012 and administrators, Deloitte, sought legal advice from HBJ Gateley, Addleshaws’ Scottish arm. Barclays, the bank the business used, supplied an overdraft and £3.5 million loan.

Barclays appointed Deloitte partners John Reid and William Dawson as joint administrators. They, in turn, hired HBJ Gateley to provide legal advice.

It is alleged that Addleshaws’ partner Tim Cooper, of HBJ at the time, communicated with Deloitte associate director Peter Mackie to find out what result the bank sought.

The company claims HBJ was “unduly influenced by, and failed to act independently of Barclays’ interest” and that it failed “to act in the best interests of AH&S” and “failed to act with reasonable care and skill of a reasonably competent solicitor”.