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Stornoway, Lewis
Stornoway lawyers in legal bid over fees 13/4/10
Stornoway solicitors Macdonald, Maciver and Co may directly sue Western Isles Council
over a 14-
They have not been paid their fees, thought to be around £100,000, after winning the legal dispute for electrical contractor Iain Crichton.
Mr Crichton was also awarded nearly £140,000 but this was only a quarter of the £500,000 compensation he sought for his losses.
He never received any cash from the council as it lodged a counter appeal.
Mr Crichton fell into bankruptcy last year after action by the taxman and the legal fight has been continued by the sequestrator.
In the latest twist to the case, Macdonald, Maciver solicitors told Sheriff Principal Stephen Young QC that they should be legally informed of any developments over any possible closed doors settlement to protect their “vested interests.”
At Stornoway sheriff court yesterday (tues) the legal firm’s advocate Stewart Buchanan stressed it feared the council and the sequestrator would make a secret deal to settle the case “behind their backs.”
He pointed out that they wanted a “foot in the door now” as a final court order could be made while an unaware lawyer Angus Macdonald was “sunning himself in Portugal.”
He pointed out that if they were involved then Macdonald, Maciver could take over and prosecute the Crichton lighting contract dispute in their own right if the sequestrator theoretically decided to drop any further action against the council.
The sequestrator’s legal agent Kevin Clancy stressed it was “too premature and what difference would it make in any case” to involve the Stornoway solicitors at this point.
The Sheriff Principal warned that council solicitor Gavin Lawson “might have the lawyers banging on his door” if he made any secret compromise.
He highlighted that a letter from the sequestrator insisting the Stornoway legal firm would have to take their turn in the queue as an ordinary creditor was one factor in his order to officially update them about any deal.
The dispute between Crichton and the council was postponed until later this year
to seek an out-
The company was set up by Mr Crichton 30 years ago and was the longest established electrician company under the same owner on Lewis.
Over the last decade the firm was dogged by the lengthy legal action against Western Isles council.
It transpired that the council had a "secret" policy to grab the maximum amount of contracts.
In 2007 the court ruled the local authority acted unfairly and unequally against
Mr Crichton and was wrong to collude with its own in-
The council accepts they failed in the tendering process but maintains Sheriff Leslie made errors in assessing the legal consequences of its failures.
It insists the sheriff failed to specifically find if Mr Crichton had a contract nor how it could have been breached.
The final delays were fatal for the electrical contractor which was made bankrupt in the middle of the appeal process.
A spokesman for Western Isles Council said: “Macdonald, Maciver & Co have not sought payment of their fees because Mr Crichton appealed.
“Mr Crichton did not receive any payment from the Comhairle because he
decided to appeal. The Comhairle lodged a cross-
Appealed.
“It is not correct that the Comhairle had 'a secret policy to grab the
maximum amount of contracts'.
“The Comhairle did want to win contracts and there was no secret made of that. However the Comhairle went through competitive bidding procedures to do so.
“The appeal is still alive and no decision has been reached. However, the
Comhairle remains confident that the terms of its cross appeal are well
founded.”