4KBW seeks £1m from bankrupt Claims Direct

Robert Rhodes QC’s embattled 4 King’s Bench Walk (4KBW) is in talks with Claims Direct administrator Deloitte & Touche over some £1m owed for work it did for the claims management company.

It is understood that several other chambers which used Claims Direct are also seeking payments.

It is also understood that the Bar Council is still investigating whether payments made to Claims Direct by 4 KBW’s consultant clerk Ian Lee constituted payments in return for work. Rhodes is due to face a disciplinary tribunal in April for alleged maladministration. 4KBW is due to dissolve at the end of April.

According to sources, some of the solicitors who referred the Claims Direct work to 4KBW did not pay the set at the time of the case. Records of these cases were kept in the hands of Claims Direct and, claims one source, “only it [Claims Direct] knew if a case had been settled”. 4KBW is seeking release of these records. “They will tell us if we ever should have been paid. We will then be able to recoup the money through the solicitors,” the source explained.

A further £100,000 said to be owed to 4KBW was due to have been paid directly by Claims Direct, but it went bankrupt first.

“Deloittes has been hanging on to this money because it said it did not understand the status of the money Claims Direct had been receiving. We have shown it correspondence showing these were counsel’s fees and need to be put into client accounts,” said a source.