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Charles Russell is gearing up for a High Court battle after being accused of breach of contract.
Communications Technology Investments (CTIL) and consultancy company Peapod are suing partner David Berry and Charles Russell after the firm represented Peapod's former managing director Rakesh Gandhi in a civil case.
Peapod and CTIL are claiming damages in excess of £1m after obtaining freezing orders when Gandhi sought to obtain increased control over the company through increased company shares.
A source told The Lawyer: "There was a civil case and Gandhi lost. The company then had to pursue freezing orders and other methods to deal with the dispute. This obviously cost the company a great deal."
Both companies are hoping to recoup the costs incurred from seeking these preventative measures from Gandhi's advisers via the courts.
A spokesman at Charles Russell said: "A claim's been issued and we're rigorously defending these claims. We deny any suggestions we acted in bad faith. We deny any loss as a result of any allegations made." Both parties are now waiting for directions for a hearing, which is expected within the next two months.