Deacon continues action against trust

BANKRUPT solicitor David Deacon, founder of collapsed Deacon Goldrein & Green (DGG), won a small victory in court against creditor NWS Trust last week.

Banker NWS Trust, which had successfully applied for his bankruptcy order in April, failed to stop a legal action against it by Deacon.

Deacon's action against NWS Trust, owed about £400,00 from the DGG collapse, started when he issued a writ in March.

NWS Trust, represented by Manchester solicitors Davies Wallis Foyster, attempted to have Deacon's action struck out, but failed and had a costs order awarded against it.

The Deacon legal camp led by sole practitioner Marshall Ronald is understood to be continuing to pursue the 'malicious presentation' action.

Deacon's action against NWS Trust started after an earlier bankruptcy petition from the bank was thrown out of court.

After Deacon issued a writ, NWS Trust chose to re-petition rather than appeal.

Eight equity partners of DGG have already been made bankrupt by NWS Trust, supported by Frizzell Banking Services (owed £800,000) and Customs and Excise (owed £400,000).

No petition was filed against Neville Goldrein, who was never a partner at DGG.

Deacon's solicitor will probably hold back a hearing on the malicious presentation case until after the bankruptcy hearings of three other former partners and an appeal by Deacon are heard. These have been delayed after new evidence apparently emerged affecting the three hearings.

In Deacon's libel action against The Mail on Sunday, both a writ and separate statement of claim have been issued, says Liverpool firm Robinsons, instructed by Deacon. Mishcon De Reya, acting for the newspaper, declined to comment.