A former partner at Manchester firm Rowlands Field Cunningham (RFC), which was taken over by Linder Myers in a pre-pack deal in December, is suing his old firm for missing capital repayments.
Simon Hughes, who left RFC in April 2011 after five years at the firm and is now a lawyer at Hargreaves Mounteney, filed a claim at the Chancery Division of the High Court on 25 November 2011.
He is claiming that the LLP, or its continuing members, failed to pay the first two instalments of his capital share repayments. Under the partnership agreement Hughes is entitled to receive his capital in 12 quarterly instalments. He is also claiming that the firm failed to file its LLP accounts for the 2010-11 financial year in a reasonable amount of time.
Hughes is seeking specific performance of the terms of the firm’s partnership agreement that require it to instruct accountants to “take an account of the income, expenditure and profits and net profits of the LLP for that financial year … as soon as may be after the end of each financial year”, as well as specific performance in relation to repayment of his capital.
Failing the specific performance order, Hughes will seek damages for breach of the partnership agreement.
RFC’s former partners, who are now at Linder Myers, declined to comment since the case is active. However one source at the firm said the firm would file its 2010-11 LLP accounts and the cessation accounts for the year until 22 December 2011, when the firm was bought by Linder Myers (3 January 2012). Baker Tilly have been appointed as accountants.
Hughes, who declined to comment on the case, is instructing Aaron & Partners on the matter.