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BDO refused appeal in bid to recover cash from former Halliwells partner

On reflection, this looks like a case where both sides have lost. BDO have said, through leading counsel, that they have evidence to justify an allegation of fraud against Burns. They appear to have lost because they didn't plead this properly and raised the allegation late and in an inadmissible way, which probably says more about Addleshaws' litigation strategy than anything else. Warren J's judgment allows them to amend their pleading to allege fraud, but he points out that Burns was not uniquely culpable, and so if BDO plead fraud against him, they will have to against the others in his position. So BDO have a difficult choice if they don't succeed in appealing this decision. Either they plead fraud against all the Spinningfields defendants, or they let Burns go free. Lexa Hilliard was very confident that she had enough material to amend to plead fraud. Can BDO justify not pleading it and letting Burns get away? Lots of questions will be asked about their independence and integrity if they don't follow through with their threat to amend, particularly after spending so much of the creditors' money on this application.

27-Jun-2012

9:20 am