Hammonds has sued a client to recover more than £500,000 for almost three years’ worth of unpaid fees.
The client has submitted a counterclaim that alleges Hammonds breached an agreement by failing to deliver competent financial and legal services and for negligence.
The firm took clothing manufacturer Pro-Fit USA to the High Court, seeking an administrative order to recoup the £556,450 it claims it is owed.
Hammonds claimed the client had outstanding invoices raised between February 2005 and April 2006 totalling almost £400,000, in addition to unbilled work-in-progress worth more than £150,000.
At the High Court hearing Mr Justice Warren found in favour of Hammonds. “I would exercise my discretion in favour of making an administration order,” he said. The case, however, continues.
Pro-Fit USA became a Hammonds client in February 2004 after the clothing manufacturer parted company with its previous firm following a litigation with Tag-it, an apparel manufacturer that sells trims and zips to Abercrombie & Fitch and Levi Strauss.
The two manufacturers were in a patent infringement battle over a stretchable trim used by Abercrombie and Levi.
A spokesman for Hammonds refused to comment on the current case, saying it would be inappropriate.