500 sue Collyer-Bristow in lit funding first

Collyer-Bristow is facing a £50m legal battle brought by more than 500 investors in schemes drafted by the firm’s former company commercial chief John Bailey.


500 sue Collyer-Bristow in lit funding firstLondon firm Collyer-Bristow has become embroiled in a £50m legal battle brought by more than 500 investors in schemes drafted by the firm’s former company commercial chief John Bailey.

The firm and Bailey have both been named as ­defendants after the failure of 19 complex investment schemes, ;which ;were ­promoted by InnovatorOne between 2002 and 2005.

This is not the first time Collyer-Bristow and Bailey have been drawn into ­disputes as a result of ­InnovatorOne.

Both were named as defendants in a case centred around a film-financing scheme set up by InnovatorOne’s Bjorn Stiedl, in which more than £4m had allegedly been lost. The action headed to the High Court last year but was settled on 9 July 2007.

In addition to this, the firm and Bailey were both named in a £40m claim brought by Cable & Wireless and subsidiary ­Pender Insurance three years ago (The Lawyer, 10 October 2005).

Addleshaw Goddard brought the latest action on behalf of 555 investors after securing a finance package that combines a discounted conditional fee agreement, £5m worth of litigation funding from Allianz ProzessFinanz and after-the-event insurance covered by QBE and Brit Insurance. The brokers were Calunius Capital and The Judge.

Addleshaws partner Michael Green said: “This is access to justice translated from the political sound-bite to a practical and powerful reality.”

Collyer-Bristow, which is being represented by Beachcroft, declined to comment. Bailey, who has instructed Byrne & Partners, was unavailable for comment.