Charles Russell is heading for a High Court showdown with one of its former clients, record producer Mike Stock, who is suing the firm for negligence.
Stock, who produced Kylie Minogue's hit I Should Be So Lucky as part of pop producing trio Stock, Aitken & Waterman, is taking Charles Russell to court for more than £15,000.
He claims that the firm gave him bad advice in relation to a counterclaim he brought against his former accountant Guy Rippon.
Rippon was suing Stock for unpaid fees of £23,000 after an investigation by the Inland Revenue concerning £2m of unpaid taxes.
Stock's counterclaim was that he had overpaid Rippon and that the accountant's decisions meant he lost the chance to settle with the taxman for £1.75m.
The music man's beef with Charles Russell is that, according to Stoke, the firm advised him to turn down an offer of £100,000 in a mediation as "we will get more in court". In the end he lost more than £515,000.
Stock said the firm also estimated that the likely legal costs would be between £25,000 and £50,000, but in the end he had to drop the case and pay Rippon £232,500. He also lost £50,000 paid into court as well as his own costs of more than £233,000.
Stock's law firm Smith Gadd & Co will accuse Charles Russell of failing to keep the music producer properly informed over legal costs and failed to have discussions over whether the likely outcome would justify the expense or risk.
A spokesman from Charles Russell said: "The case is an ongoing matter and as a result we can't comment."