Scotland-headquartered Dundas & Wilson has launched a probe into a sector head who obtained confidential information about a client that prejudiced a tender process.
Keith Armstrong, a projects partner at the firm’s Edinburgh headquarters, resigned after the firm established that there were “irregularities” in the pitch, understood to be for a public procurement project.
The firm has consulted the Law Society of Scotland and is conducting an internal investigation into the conduct of Armstrong, who took on the role of sole energy and infrastructure head following the resignation of infrastructure co-head Andrew Renton last year (5 October 2011).
Interim managing partner Caryn Penley said in a statement to The Lawyer: “It was brought to the attention of the board that there were irregularities in a tender process in which the firm recently participated. As soon as we ascertained this we immediately withdrew our tender to maintain the integrity of the process.
“Our initial investigations established that a partner had come into the possession of confidential information which may have prejudiced the tender process. The partner concerned has resigned from Dundas & Wilson, and is now on gardening leave.”
The statement continued: “Given the nature of the incident we consulted with the Law Society of Scotland. The circumstances of this are profoundly disappointing for all concerned. In the interests of everyone involved we have acted on this as quickly as possible. Once our investigations are finalised the matter will be referred to our board for further action and pending that it would not be appropriate to make further comment.”
Armstrong is understood to have instructed a solicitor and been prevented from using his firm email account or mobile phone. As of last Friday (15 June), the partner’s automated email response stated that he was “currently out of the office” and referred the recipient to a colleague.
The investigation is being carried out by the Dundas board, which includes Penley and chairman David Hardie. Penley is serving as interim managing partner while the firm selects a permanent replacement for Donald Shaw, who stood down earlier this year (8 March 2012). Hustings and a vote are scheduled for this Wednesday (14 June 2012).
Armstrong could not be reached for comment. The Scottish Legal Complaints Commission said it could not confirm or deny that it has received a complaint, while the Law Society of Scotland said it could not provide any information.
Readers' comments (10)
Anonymous | 18-Jun-2012 9:09 am
Well done to D&W for taking such a principled stance.
I've heard quite a few rumours of firms turning a blind eye to malpractice (for example, a wife marking the bid from her husband's firm or not declaring an interest).
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Anonymous | 18-Jun-2012 9:12 am
"The partner concerned has resigned from Dundas & Wilson, and is now on gardening leave"
eh which is it?
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Bertie | 18-Jun-2012 12:21 pm
It is perfectly possible to resign a position and then be placed on gardening leave. It's probably therefore both. Are you concerned about the semantics of it all? Technically speaking, I suppose the partner i.q. has not "resigned from" but "postulated his desire to resign from, which resignation takes effect as at" but that just sounds silly. Anyone who needs to understand, will understand that the partner i.q. has given notice to resign and is currently excluded from the office until his resignation expires at which point he will no longer be employed by the firm.
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Gavin | 18-Jun-2012 2:00 pm
The article mentions "Armstrong is understood to have instructed a solicitor." One wonders why, if he resigned of his own volition ..as opposed to being expelled after a partnership vote under their LLP Agreement. If he though he'd been treated unfairly surely he would have forced them to put it to a vote.
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Herbert | 18-Jun-2012 2:06 pm
More to the point, what has he done?! Looking forward to reading more details on this one.
Anonymous @ 09.12 - of course you can do both. You quit, and then (if you're senior/important enough) your firm puts you on gardening leave for the period of your notice. Are you new to the world of employment contracts? I imagine in the past your firms have just had you work your full notice period...
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Herbert | 18-Jun-2012 3:22 pm
Gavin, 2 options: (1) he has an argument around constructive dismissal or (2) he may be needing a good defence solicitor, depending on how the confidential information was obtained...
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Anonymous | 18-Jun-2012 9:20 pm
Hardie has clearly gone for a PR lesson since commenting that at least Dundas didn't shoot the 30 redundancy victims... pleased to see that he is retiring part way through his term.
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Anonymous | 20-Jun-2012 2:41 pm
A once proud firm going down the toilet the quickest way possible. Hope the new MP and chairman realise that a change of approach is needed.
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Anonymous | 22-Jun-2012 9:23 pm
Bertie exemplifies everything that makes one glad to be a lawyer
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Anonymous | 24-Aug-2012 10:05 am
D & W going down the toilet? Not as long as Dundas blood still beats through this attorney's heart. The legal profession comes naturally to us. Simply clear out the dead-wood and return the firm to its original roots.
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