Pop producer sues Charles Russell

Charles Russell has been hit with a second negligence High Court battle in as many weeks.

Former client Mike Stock, who as part of Stock Aitken & Waterman produced records for the likes of Kylie Minogue and Jason Donovan, is taking Charles Russell to court with a claim worth £15,000.

Stock claims that the firm gave him bad advice in relation to a counterclaim he brought against his former accountant Guy Rippon.

Rippon was suing Stock for unpaid fees of £23,000 after an investigation by the Inland Revenue over £2m of unpaid taxes.

Stock’s counterclaim was that he had overpaid Rippon and that the accountant’s decisions meant he lost the chance to settle with the taxman for £1.75m.

According to Stock, Charles Russell advised him to turn down an offer of £100,000 in a mediation as the firm believed he would get more in court. In reality he lost more than £515,000, he claims.

Stock’s law firm Smith Gadd & Co will tell the court that Charles Russell failed to keep the music producer properly informed over legal costs and failed to have discussions over whether the likely outcome would justify the expense or risk.

Last month The Lawyer (2 July) reported that Charles Russell was gearing up for another High Court battle after being accused of breach of contract by Communications Technology Investments (CTIL) and consultancy company Peapod.

Peapod and CTIL are claiming damages in excess of £1m after obtaining freezing orders when Peapod’s former managing director Rakesh Gandhi sought to obtain increased control over the company through increased company shares.

In relation to Stock’s claim, a spokesman from Charles Russell said: “The case is an ongoing matter and, as a result, we can’t comment.”